LG Philips LCD said it has developed the industry's first liquid crystal display (LCD) panel for next-generation mobile phones, allowing a clearer playback of video clips.

The South Korean-Dutch joint venture said Thursday its new two-inch (five centimetre) display would open the door to "exciting mobile entertainment possibilities."

The display has a faster response time than existing ones, allowing it to play back sharp high-quality video from next-generation digital broadcasts and mobile communication technology, it said.

The display's 16ms (milli-second) response time is 36 percent faster than the fastest TFT-LCD panels currently used for mobile phones, it said. A milli-second is one thousandth of a second.

"As the first such TFT-LCD product with a response time in the teens, we will be able to fill demand in the mobile display market for displays that can display high-resolution video and consume little power," said vice president Hyun He-Ha.

The world's second largest flat-panel maker said the new display would not cause after-images or ghosting, which reduce the picture quality for high-definition video.