(Yicai Global) May 30 -- Tianma Microelectronics, the world's largest maker of in-vehicle displays, will join hands with an eastern Chinese government to establish a new CNY8 billion (USD1.2 billion) plant to consolidate its leading global position.

Tianma will construct the factory in Anhui province's Wuhu in collaboration with two investment firms under the city government, the Shenzhen-based display panel giant said in a statement recently. The manufacturer will have almost 52.1 percent of the new joint venture's shares. The two partners will have the remainder.

Tianma held the biggest global market share in the field of in-vehicle displays and instrument panels last year based on shipments, according to market research agency Omdia.

The factory will produce display modules sized from 6.5 to 40 inches. The products should be used in industrial and automotive fields, as well as feature in laptops and tablets.

The demand for displays, which enable human-computer interaction, is booming as the development of fifth-generation wireless networks, the Intelligence of Things, in-vehicle displays, and electric vehicles is quickly advancing, said Tianma.

Building the display module plant should help Tianma to accommodates its clients' specific product requirements and make them more willing to continue cooperation with the firm, which should strengthen its leading position in the field, the company added.

The news failed to spur any major stock price movements. Tianma's share price [SHE: 000050] rose 0.7 percent to CNY9.19 (USD1.40) as of lunch break.

Editor: Emmi Laine, Xiao Yi