LG Display has reportedly signed a supply contract with Sony to provide the Japamese company with OLED panels for TVs.

According to Korea Times, LG Display will start supplying its panels in second quarter of this year, and Sony will start releasing its OLED TV models in the third quarter.

Sony's plan is to produce about 100,000 OLED TVs yearly - a small ampunt considering that LG Electronics shipped out 110,000 to 140,000 OLED TVs per quarter in 2016. It seems that LG Display's ability to produce OLED panels is very tight and it cannot supply enough OLED panels to its clients, including Sony.

LG Display's ability to produce 8th generation OLED panels by end of last year was 34,000 panels per month. The company may able to further increase the OLED panel output to 59,000 to 60,000 OLED panels per month, by operating its E4-2 line, an extension that was established last year.

A representative for LG Display said that the company cannot disclose any information regarding its customers.