Sources in the US report that Sumitomo Chemical have announced plans to begin producing large screen OLED panels for use in 40-inch TVs and larger. OLED, or organic light emitting diode, is the next step in TV technology. It allows manufacturers to create far thinner display panels than the current plasma and LCD technology and also produces a far better viewing experience.

OLED TVs don’t require a backlight for viewing which saves significant amounts of power. The lack of backlighting is also the reason why the panel can be produced so thin. OLED TVs also have increased range of colours, better brightness and wider viewing angle. Their response time is also significantly better than current LCDs.

OLED technology can already be found in mobile phones, digital cameras and MP3 players, but no company as yet has been able to produce an affordable large TV with the technology. Sony were the first company to sell an OLED TV to consumers, the 11.1-inch XEL while Samsung displayed a 31-inch panel at the 2008 CES in Las Vegas. Sony’s XEL retails for more than $2,500 and is available only in North America.