Although Sharp's application to set up an 8G TFT-LCD production plant in China was denied, Sharp has reportedly applied to set up a 10G plant instead in Nanjing with a schedule to start construction in June 2011.

Sharp has agreed to become a partner of CEC Panda and transfer technology for setting up a 10G plant.

AU Optronics (AUO) has landed permission through its cooperation with InfoVision Optoelectronics (IVO) for either a 7.5G or 8.5G plant in China.

China is actively developing the TFT-LCD panel industry and first-tier panel maker Samsung Electronics has acquired permission to set up a 7.5G plant and LG Display an 8.5G plant. However, due to over supply of panels and the priority of developing the Korea market, the two Korea-based panel makers have slowed down their development of advanced panel production plants in China.

Panel makers indicated that with the strong governmental background of CEC and 10G being the most advanced panel production line, the China government is expected to approve the application for Sharp/CEC Panda's 10G plant soon.

Investment in the 10G plant is expected to be level with Sharp's existing 10G plant of JPY450 billion (US$5.55 billion). Monthly capacity is designed to be 80,000 substrates, and is estimated to produce 17 million of 40-inch LCD TV panels.