Sharp Corporation Notice of Business Alliance Relating to LCDs with China Electronics Corporation
Osaka, June 27, 2013 - (JCN Newswire) - Sharp Corporation ("Sharp") announced that Sharp has passed a resolution at its board of directors meeting held on June 27, 2013, to enter into a business alliance relating to liquid crystal displays ("LCDs") with China Electronics Corporation.
Sharp, as announced in the press release "Sharp signs agreement for LCD panel production project in China" dated August 31, 2009, has accepted an order for the 6th generation LCD panel production project ("this 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"). The production has commenced in May, 2011. Thereafter, input capacity was steadily expanded, establishing a mass-production system by the end of 2012.
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.
For complete details, please see http://sharp-world.com/corporate/ir/topics/pdf/130627.pdf.
About Sharp
Sharp Corporation (TSE: 6753) is a worldwide developer of innovative products and core technologies that play a key role in shaping the future of electronics. As a leader in liquid crystal displays (LCDs) and digital technologies, Sharp offers one of the broadest and most advanced lines of consumer electronics, information products and electronic components, while also creating new network businesses. For more information, please visit www.sharp.co.jp .
Source: Sharp
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