On Friday 4 February 2011, 4:38 EST
Japan's Sharp Corp. will partner with Taiwan's Chimei Innolux Corp. to produce liquid crystal display panels for television sets, a report said Friday.
Sharp will provide Chimei with technology for reducing the power consumption of LCD TVs and will outsource production of 20- to 39-inch panels, Japan's Nikkei daily said.
Meanwhile, Sharp will provide panels of 40 inches and larger to Chimei, the financial daily reported.
The two companies have already signed a deal on the technology transfer and plan to start supplying panels to each other by the end of this year, the report said.
The move will help Sharp to reduce costs and meet requests from TV manufacturers to cut prices, it said.
A Sharp spokesman declined to comment on the reported tie-up plan.
Sharp shares rose on the Tokyo Stock Exchange in the wake of the news, up 2.6 percent shortly after opening.