By Kim Yoo-chul
Staff reporter

The chief executive of LG Display has confirmed that his firm is talking with Sony for a display panel contract.

CEO Kwon Young-soo said its talks with Sony are being boosted by the credit it received for in-plane switching (IPS)-based panel-making technology used in Apple's iPads.

"LG Display is in discussions with Sony over panels," Kwon said in a meeting with reporters in Seoul, Friday.

Sony is seeing some chances to diversify its LCD procurement channels away from its heavy dependence on Samsung Electronics to meet this year’s ambitious LCD TV sales target.

Sony has been a loyal customer of Samsung Electronics. The Japanese company has bought some 50 percent of its LCD panels from its screen joint venture with Samsung Electronics called S-LCD in Tingeing, South Chungcheong Province, since 2004.

Sources close to the matter told The Korea Times that LG Display was approached by Sony to possibly supply 30-inch level panels for televisions from early next year.

CEO Kwon said he doesn't have an immediate plan to meet Sony CEO Howard Stringer. Hong Ji-eun, a spokeswoman for Sony's local branch, declined to comment.

Referring to Sony's approach, CEO Kwon said its customer bases are strengthening and more television makers using Samsung-led vertical alignment (VA) technology have been shifting to use LG’s IPS technology for productions.

"Panasonic of Japan and BOE of China are adopting LG's IPS technology. Meanwhile, LG's biggest local rival has been producing panels using the IPS technology," Kwon said.

In comparison with VA technology, IPS isn't as sharp in terms of lighting, but has a broader view and faster response.

Samsung Electronics and Sony are the leaders to apply the VA technology to their LCD panels, while LG Display has embraced the IPS technology. LG is the world's biggest maker of LCD panels after Samsung in the global market.

LCD panels are used in everything from mobile phones to televisions. Client channels are the key factor to gauge the profitability of LCD-making companies and regarded as the barometer for corporate growth sustainability.

"LG Display will supply the LCD panels using an advanced AH-IPS technology to LG Electronics within this year," Kwon said, adding its decision to build another LCD line was aimed at meeting the rising demand from Apple.

Along with ones for iPads, LG Display has been known to begin shipping its panels for Apple's iPhone 4. Steve Park, a representative of Apple's Korean branch wasn't available for comment.