Samsung announced it will invest $529 million to boost its OLED production to six times the current level by mid-2009.
The move comes as leading panel makers try to grab a piece of the fast-growing market for active-matrix organic light-emitting diode (AM-OLED) displays, which make better-quality, slimmer and more energy-efficient screens than liquid crystal displays.
But makers need to clear hurdles such as cutting production costs and maximizing screen size in order to see an adoption in a wider range of applications.
Samsung SDI, which produces small-sized AM-OLED screens used in handheld devices, said in a filing with the local exchange that it would invest 551.8 billion won ($528.6 million) until mid-2009 to expand its AM-OLED output.
When the investment is completed, its production capacity will reach 9 million units a month in 2-inch screen terms, compared with 1.5 million currently, the company said.