Three China companies are making the investment:BOE Technology Group Co,  Tianma Microelectronics and Shenzhen China Star Optoelectronics Technology.

Japan Display, formedfrom the failing panel operations of Sony, Hitachi and Toshiba, has been loss-making for the last three years and lacks the capital to invest in OLED production capacity.

Sharp, now controlled by Foxconn of Taiwan, has also approached Japan Display for a possible collaboration.

The Japan government bail-out fund INCJ owns 36% of Japan Display.