The embattled Sharp has entered into an agreement with state-run company China Electronics to form a joint venture focused on building LCDs.
Sharp's board of directors announced on Thursday (PDF) that they've formed a joint venture that will be known as Nanjing CEC-Panda LCD Technology, with China Electronics. That company, better known as CEC, will own 92 percent of the joint venture, leaving Sharp with 8 percent ownership.
According to Sharp, the newly formed company will start construction on an LCD production plant in August, and expects to start delivering panels in June 2015. It will focus its efforts on high-definition LCD panels and modules for televisions, PC monitors, and tablets.
To sweeten the pot a bit for Sharp, the company will license its IGZO LCD technology to the new joint venture. Terms of that licensing deal were not disclosed.
Sharp has watched its financial performance suffer at the hands of increased competition in the television market. The company was bailed out last year by banks, and has recently sought cash infusions from a few companies, including Qualcomm.