Samsung Electronics and Sony are in talks to work together for co-production of the 11th generation LCD panel, according to reports.

The Maeil Business Newspaper today reported that S-LCD, a joint-venture between Sony and Samsung, is expected to start production of 11th generation LCD panels.

"Co-production of the 11th generation LCD panel with S-LCD, a joint-venture between Sony and Samsung is under consideration. Details about investment size and production date haven?t been decided yet," an official from Sony said on Tuesday, according to the paper.

The 11th generation LCD panel measures 3,000mm in length and 3,320mm in width. It will be the world?s largest LCD panel and suitable for building large television sets with screens more than 40 inches.

Such a contract would offer Samsung a secure and stable source of LCD panels, helping the company leave its rivals far behind in the LCD panel market as it would becomes the first electronics company to produce the 11th generation LCD panel.

S-LCD Corporation is a joint venture between the South Korean Samsung Electronics Co. Ltd (50% plus one share) and Japanese Sony Corporation (50% minus one share) established in April 2004 in Chungcheongnam-do, South Korea. S-LCD, as of April 25 2008, operated with a monthly production capacity of 100,000 7th generation amorphous silicon (a-Si) panels and 50,000 8th generation panels, which are integrated into both Samsung Electronics and Sony LCD televisions and memory cards.

If Samsung and Sony agree on the contract by early next year, production could begin in the second half of 2012.