Japanese electronics manufacturer Sharp Corp. (OTCMKTS:SHCAY) has entered into a $2.9 billion contract with China Electronics Corporation (HKG:0085) to manufacture sixth-generation LCD screens.

Sharp, a leading supplier of displays to Apple Inc., will also license its advance power-saving IGZO (indium gallium zinc oxide) screen technology.

The deal, which will be 92 percent owned by China Electronics, which also supplies electronics to the Chinese military, comes with the intention of mass producing panel displays for televisions, notebook PCs and tablets in 2015.

IGZO technology uses just a tenth of conventional LCD and has a higher resolution and faster reaction time. While Sharp does not own the IGZO technology, it is relying on its IGZO business to bolster its finances by being the first commercialize it.