Sony-affiliated start-up to make new flat displays

TOKYO, July 2 (Reuters) - A flat panel startup affiliated with Sony Corp (6758.T) said on Wednesday it will spend up to 30 billion yen ($283 million) to make new display panels based on field emission display technology by the end of next year.

Field Emission Technologies Inc, owned 37.8 percent by Sony, said it is in talks with Pioneer Corp (6773.T) to buy one of its plasma panel plants in southern Japan.

Both Field Emission Technologies and Pioneer said the price has yet to be set. Pioneer is withdrawing from plasma panel production and will instead procure panels from Matsushita Electric Industrial Co Ltd (6752.T), the world's No.1 plasma TV maker.

Field Emission Technologies' production capacity will initially be equivalent to 10,000 units of 26-inch panels a month.

It aims for annual sales of 25 billion yen in the second year of commercial production and targets 100 billion yen in revenues eventually.

The company plans to market the new panels, capable of recreating natural colour and offering fast-moving images without blurring, as displays for medical and other professional monitors as well as for high-end TVs. ($1=106.04 Yen)

(Reporting by Kiyoshi Takenaka; Editing by Michael Watson)