TOKYO May 26 Japan Display Inc, the
world's biggest maker of liquid crystal displays for smartphones
and tablets, is considering setting up a joint venture with Sony
Corp and Panasonic Corp to develop organic
light-emitting diode (OLED) displays, sources familiar with the
They added that the new company would be mostly owned by the
Innovation Network Corp of Japan, a government-backed fund that
formed Japan Display from loss-making panel businesses at Sony,
Hitachi Ltd and Toshiba Corp.
OLED screens offer higher resolution and use less power than
more commonly used LCD panels. South Korea's Samsung Electronics
Co Ltd equips it smartphones with OLEDs, but the
technology is considered prohibitively expensive for larger
screens used in televisions.
Panasonic and Sony at the end of December disbanded a joint
project to develop OLED displays for TVs although they continued
separate development efforts on the technology.
Japan Display is currently setting up a test line to
manufacture OLED panels at a factory in northwestern Japan.
Sony, Panasonic and Japan Display would each own a portion
of the OLED venture and would send engineers to work on the
technology, the sources said.
The parties are aiming to reach an agreement as early as
June, but several issues remain to be resolved, they added.
Officials with Japan Display, Sony and Panasonic all
declined to comment.
(Writing by Sophie Knight; Editing by Edmund Klamann and Matt