LG Display and Samsung Display have jointly invested 1.5 billion yen, approximately 16.0 billion won in Japanese venture start-up Kyulux to secure OLED, or organic light emitting diode panel technologies.

Kyulux is a Japanese venture start-up that was incubated out of Kyushu University of Japan in March to conduct research projects to help tackle technology challenges in manufacturing OLED panels.

The start-up is known to hold about 50 technology patents that can allow panel maker to get more productivity, but at lower costs, compared with current technologies.

Especially, the company has major technology patents on TADF, or thermally activated delayed fluorescence, a next nest generation of OLED technology. Forging iridium, a key base material that is instrumental in shedding RGB colors, the TADF can create the same colors drastically reducing power consumption. Accordingly, it can help save manufacturing costs by 90%, allowing pane makers to produce OLED panels for one tenth what it costs today.

The joint-investment would let Samsung and LG to use the TADF technology.

The investment comes at a time when Korean TFT-LCD panel makers are turning to OLED technology for a new source of revenue, as Chinese TFT LCD panel makers are threatening to make big dents on Korean makers’ long-held dominances in the global LCD panel market.

Not only will the rapid turn to the OLED panel production help maintain leadership in global display panel and TV market, but also  fight back Chinese encroachments into LCD panel market.