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Corning Incorporated has signed a contract which will see the launch of a new glass substrate production base in Chongqing's Liangjiang New Area.

The production base is expected to open in this year, according to the Liangjiang administrative committee.

The new production base is expected to serve LCD panel makers in China, such as BOE Technology Group, a leading supplier of semiconductor display products.

Glass substrate is the core part of the LCD panel production chain. With the fast development of smart phones and tablet computers, LCD products are expected to take up a larger share of the market in China.

Corning Incorporated has played a significant role in the development of LCD production. In June, Corning Incorporated signed an investment contract with the Liangjiang administrative committee.

"We are very happy about the investment in Liangjiang New Area. Chongqing is occupied with the modern infrastructure, which makes the city suitable for investment," said Zhang Zheng, vice general manager of Corning Display Global Business Group.

Tang Zongwei, deputy director of the Liangjiang administrative committee, welcomed the investment from Corning and said that it is a good start of cooperation between the two sides.

Edited by Jacob Hooson