Seoul: LG Display, the world’s No. 2 maker of LCD screens, said on Wednesday it formed an alliance with Japan’s Idemitsu Kosan in its drive to compete in the OLED (organic light emitting diode) market.
“The agreement enables LG Display to secure a stable source of OLED materials,” the South Korean company said in a press release. “This will accelerate the growth of LG Display’s OLED business, which is emerging as a new growth engine.”
LG Display decined to disclose further information on the size and specific details of the agreement.
Idemitsu Kosan is an oil refiner active in OLED materials development.
OLED screens, increasingly used in premium mobile phones, use organic compounds that emit light when electricity is applied. Because they do not need backlighting, OLED panels are slimmer and more energy efficient than liquid crystal display panels.
But production costs and difficulties with larger screen sizes have so far held back the technology’s commercial prospects.
LG Display, citing market research firm DisplaySearch, said the global OLED market is forecast to grow from $1.05 billion in 2009 to $3.33 billion by the end of 2010.
LG Display is planning to start mass producing OLED screens in 2010.