Japan's Sharp said on August 31 that it has signed
a preliminary agreement with China's CEC (China Electronics Corporation) and the
Nanjing municipal government to set up a joint venture in Nanjing for the
manufacturing of 8G LCD (Liquid Crystal Display) panels, according to a Sina
Tech report. Investment in the new 8G line is estimated at 30 billion RMB (US$4.4
billion; US$1=6.8 RMB), which includes the establishment of a plant with a
projected capacity of 90,000 glass substrates per month initially. Mass production is slated to commence by 2012.
Apart from the collaboration on the 8G LCD venture, Sharp has also inked a separate agreement with Nanjing CEC-PANDA LCD
Technology, a CEC subsidiary, to import 6G LCD production equipment from
Sharp's Kameyama LCD Plant No. 1 in Japan to Nanjing. It is reported that the
CEC subsidiary will spend 13.8 billion RMB (US$2.0 billion) on purchasing 6G
LCD production equipment and technology from Sharp. Initial production at the
6G line is scheduled to commence in mid-September with a projected capacity of
80,000 glass substrates per month. Completion of construction on the 6G line is
slated for 2010, and mass production by 2011.
In addition, Sharp also agreed to the
establishment of a global LCD R&D center in Naning, which is expected to be
solely funded by Sharp. The R&D center is projected to operate with a staff
of more than 1,000, with establishment slated for completion in spring 2010.