LG Display Wednesday said that it has signed a supply agreement with U.S.-based chip manufacturer Cree Inc. (CREE) for LED chips to be used in liquid crystal display backlighting.

"LG Display will expand the share of panels featuring LED-backlight to 50% of its total notebook LCD output," said Han Sang-beom, Executive Vice President and Head of the IT Business Unit.

The agreement will allow LG secure a stable supply of LED chips, the company said. It didn't elaborate.

LED is a key component for environmentally friendly, ultra slim panels offering high picture quality, and LED backlight use is expected to expand from notebook LCD panels to LCD TV panels in the near future, the company added.

-By Jung-Ah Lee, Dow Jones Newswires; 822-2198-2230; jung-ah.lee@dowjones.com

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