The company said it will begin selling 37-inch LCD TV sets in Japan, its first LCD TV above 32-inches.

The contract is projected to amount to tens of millions of dollars annually.

Patent allegations made by rival Sharp may sting, but the Korean giant can take solace from the prospect of an upswing in the LCD and memory chip industries.

Researchers have developed a LCD display that moves its liquid crystals for the best image quality.

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Flat-screen maker LG.Philips LCD will start mass producing larger TV panels from its planned next-generation line in 2009, which will focus on enhanced picture quality, a company executive said.

Pioneer recenly announces FY2007 first quarter sales results and expects PDP TV unit price to rise 3%.

Sharp said fuller details will be announced later Tuesday.

Sony has launched an international campaign to improve TV products and services for blind and partially sighted people.