Sony bumps up OLED spending

Japanese consumer electronics maker Sony said on Tuesday it will spend $203.5m (£105m) to develop technology to make medium to large organic light-emitting diode panels.

Sony launched the world's first TV using such panels in November at a price of ¥200,000 (£955).

Organic light-emitting diode, or OLED, displays use organic, or carbon-containing, compounds that emit light when electricity is applied. Unlike liquid crystal display panels, they do not need backlighting, making OLED TVs slimmer and more energy-efficient.

Just 3 millimetres thick, the new TV consumes 40 per cent less power than a comparable LCD set and, because of its quick response time, is suitable for watching fast-moving images such as those typical on as sports programmes. It also offers bright colours and a wide viewing angle.

But it is technologically difficult at the moment to make large OLED panels. Sony's existing OLED TV has an 11-inch screen, or roughly as large as two CD cases put side by side.

Shares in Sony, which competes with Samsung Electronics and Sharp in LCD TVs, ended Tuesday trade up 2.2 per cent at ¥5,010, outperforming the Tokyo stock market's electrical machinery index, which gained 1.1 per cent.

Story Copyright © 2008 Reuters Limited. All rights reserved.