Japanese electronics company Sharp announced plans to cooperate with China Electronics Corporation to jointly invest USD2.9 billion to establish a joint venture in China.

China Electronics Corporation, a state-owned enterprise, will hold a 92% stake in the new JV, which will build an advanced LCD panel factory. The factory aims to start volume production of LCD panels for TVs, laptops, and tablets in 2015.

In addition, Sharp will provide its HD display panel technology to China Electronics Corporation for an unknown amount of technology usage fee.

The spokesperson of Sharp refused to reveal how much technology license fee they will gain from the transaction. However, the spokesperson said the company will use a part of the fee to purchase the 8% stake in the JV. Sharp said the total investment in the new JV will be USD2.9 billion and the LCD panel factory will be located in Nanjing, Jiangsu province.

Sharp is currently undergoing restructuring. The company borrowed over USD2 billion from banks in 2012. At present, the company is seeking opportunities to license its advanced LCD panel technology IGZO to other companies. IGZO technology features energy saving and high definition capabilities.