Taiwan's AU Optronics said on Thursday it would form a strategic alliance with Japan's Idemitsu Kosan to develop next-generation OLED flat screen technology.

The strategic alliance includes technological collaboration to develop high-performance OLED displays and OLED-related patents.

Under this strategic alliance, Idemitsu will supply high-performance OLED materials to AUO, including device structure proposal. AUO will reinforce the development of OLED products using OLED materials supplied by Idemitsu.

"This will accelerate business growth in AUO's small-sized OLED displays for smartphone and tablet, which have emerged as a new growth area in the display industry, and that of large-sized OLED displays for TV," AU Optronics said.

Idemitsu has long been dedicated to the research and development of OLED materials. In 2007, Idemitsu established its OLED materials manufacturing plant in Omaezaki, Shizuoka. In recent years, the company continues to reinforce the deployment of its OLED supply system. AUO, the world's fourth-largest LCD maker, is a global leader in the design, R&D and manufacturing of LCD, with a research staff of more than 3,500 worldwide. AUO has invested in the research and development of AMOLED and currently holds several hundreds of OLED-related patents.

Furthermore, both companies will study the possibility of collaboration in the fields other than OLED.

Idemitsu has been forming partnerships with mainly Sony through joint development, and LG Display through a strategic alliance. Also Idemitsu has been forming partnerships with Mitsui Chemicals Inc. and Universal Display Corporation through joint development.