Samsung SDI, which produces small-sized AM-OLED screens used in handheld devices, said in a filing with the local exchange that it would invest 551.8 billion won (US$528.6 million) until mid-2009 to expand its AM-OLED output.

The move comes as leading panel makers try to grab a piece of the fast-growing market for active-matrix organic light-emitting diode (AM-OLED) displays, which make better-quality, slimmer and more energy-efficient screens than liquid crystal displays.

But makers need to clear hurdles such as cutting production costs and maximizing screen size in order to see an adoption in a wider range of applications.

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