Sharp Corporation said yesterday it would form a 17.5 billion yuan ($2.9 billion) alliance with the Nanjing China Electronics Panda Group Corporation (CEC Panda), which belongs to the state-owned company China Electronics Corporation (CEC), to jointly set up an “8.5-generation LCD panel line,” Yicai.com reported.

CEC will own 92 percent of the joint venture, with Sharp holding the remainder, according to Sharp Corporation. While at the same time it was also reported the company will consider licensing its advanced power-saving IGZO screen technology,

Along with providing high definition LCD panels and module technology to CEC, both companies have agreed to operate a plant for the 8.5 generation LCD panel line. Construction of the new plant will start in August this year and it will start production in June 2015 of panel displays for televisions, notebook computers and tablets.

IGZO，or indium gallium zinc oxide, is the core LCD technology developed by Sharp. In licensing IGZO, Sharp will have the right to buy the price-competitive LCD and high-value-added panels produced by the plant, said Sharp Corporation.

To meet increasing demands on the Chinese market for LCD panels, Sharp has started negotiations with CEC over the 8.5 generation line after CEC Panda received transfer technology from Sharp and began the 6th generation line which was started in May 2011.