Sharp starts Supplies LED Backlights to Sony

TVs that use LED backlights are expected to be a major battle ground for consumer electronics makers, and such move would likely improve their competitiveness against industry giant Samsung Electronics Co LTd.

Japan's Sharp will begin supplying LED backlights for LCD televisions to Sony Corp, expanding their alliance in LCD panels. The two will also jointly develop next-generation backlights, it said without citing sources.

Sony plans to invest about 68 billion yen by April 2011 to take a one-third stake in a joint venture with Sharp to jointly produce LCD panels at a cutting-edge plant in western Japan.

The plant, which started output last month, is the world's first factory that processes so-called 10th-generation glass substrates, which are bigger than earlier-generation substrates and help reduce per-panel output costs.