DISPLAY MAKER Sharp has announced a $2.9bn joint venture with China Electronics Corporation to run an LCD panel plant from 2015.
Sharp has been trying to get its business back on track after a disastrous 2012 that saw the firm need a government bailout after its top brass publicly questioned its future. Just days after finalising a stock sale to Qualcomm, Sharp has announced a $2.9bn deal with China Electronics Corporation to jointly run an 8.5 generation LCD factory.
Sharp and China Electronics will setup a joint venture called Nanjing CEC-PANDA LCD Technology that will be 92 percent owned by China Electronics and eight percent owned by Sharp. According to Sharp's statement, the company will be incorporated in March 2014 and will design, produce, sell and service LCD panels, colour filters and finished LCD modules.
Sharp said that the plant, which is planned to come online in June 2015, will produce "mother glass" panels 2.2x2.5m in size that will then be cut according to customer requirements. The firm said that the panels will be high definition panels for use in televisions, PC monitors and tablets, though it didn't mention whether it will include production of its highly rated IGZO technology.
According to Sharp the plant located in mainland China will be able to serve the growing demand for screens in that country. The firm also said that it reserves the right to sell panels produced in the plant under its own brand to compete with China Electronics' brands. µ