Sharp is reportedly in talks with a major Chinese electronics maker SVA (Group) Co. to jointly produce in China liquid crystal display panels used for TV sets, according to the Nikkei daily. The move could boost Sharp's competitiveness. The electronics giant has been hit by the global slowdown and by the yen's rise against the dollar, which has made exporting panels to LCD television plants around the world less profitable.

The deal would make Sharp the first Japanese electronics manufacturer to produce LCD panels in China.