OREANDA-NEWS. Sharp has accepted an order for the 6th generation LCD panel production project from LCD business company Nanjing CEC-PANDA LCD Technology Co., Ltd., established by Nanjing-City and Nanjing China Electronics Panda Group Corporation (“CEC Panda”).

Further, when this project was accepted, in order to prepare for the expansion of demand for LCD panels in China, following the production of 6th generation LCD panels, Sharp has decided to pursue discussions regarding a joint venture for the production of 8th generation LCD panels with the Nanjing-City and China Electronics Corporation (“CEC”), the parent company of CEC Panda.

In this context, along with providing high definition TFT-LCD panels and module technology to the strategic partner CEC, both companies have agreed to operate a plant for the 8.5th generation LCD panels and modules utilizing the technology as a joint venture along with investment by Sharp. With commencement of mass-production scheduled in or after 2015, it is assumed that main applications will be for television sets, notebook PCs and tablets. Sharp reserves the right to purchase the price-competitive and high-value-added LCD panels that will be produced at the plant.

Sharp is working on business restructuring with the intent of reducing assets through optimization of the value chain, and, in the current approach, Sharp will enhance global competitiveness by optimally combining technology, human resources and production for each value chain, such as technology development in Japan, panel planning in the countries or regions close to consumer markets, and production in the countries or regions taking advantage of low production cost infrastructure, respectively. By combining advanced LCD technology of Sharp with the highly efficient technology of the strategic partner CEC, Sharp will establish a system to provide highly competitive LCD panels and modules in a stable and timely manner, and steadily grow its LCD business.

The impact on business performance accompanying this business alliance has already been factored into the consolidated earnings forecast for the year ending March 2014 that was announced on May 14, 2013.

Moreover, if any items arise in the future that must be disclosed in relation to this business agreement, they will be promptly disclosed.