SEOUL, Jan 28 (Reuters) - South Korea’s LG Display (034220.KS) said on Wednesday it had signed a deal with U.S.-based Cree Inc. (CREE.O) to secure supply of LED (light emitting diodes) chips for its flat screen products.
LG Display, the world’s second biggest maker of liquid crystal display (LCD) screens, said in a statement that the agreement had been signed in early January.
LEDs are considered an energy-efficient, environmentally friendly alternative to current CCFL (cold cathode fluorescent lamp) backlights, which are a key part of LCD panels.
“Under the agreement, LG Display secures a stable supply of LED chips, a key component in next-generation LCD products, and receives technological support from Cree for LED packaging,” LG Display said.
Analysts and investors have cited Cree as a potential beneficiary of the new U.S. administration’s planned federal investments in efficiency and improvements to the country’s electricity grid. (Reporting by Marie-France Han; editing by Keiron Henderson)