Dow Chemical will increase the supply of a key material that is used in next-generation displays, such as flat-panel screens, potentially improving the outlook for the emerging technology. Dow's Advanced Electronic Materials division announced Tuesday that it is expanding a facility in Midland, Mich., to increase production of polymers used in organic light-emitting diode displays (OLED).

Although analysts don't expect OLED technology to challenge traditional liquid crystal displays (LCDs) in the flat-panel monitor market for at least 10 years, the increased supply of light-emitting polymers from the Dow Chemical facility should help to increase the spread of the new technology. "The larger facility may help in the long run, because one of the keys in developing a technology and industry from scratch like OLED is that you have to have standardized materials and manufacturing equipment," said Kimberly Allen, analyst with research firm iSuppli/Stanford Resources. "Getting a big player like Dow is just another step in developing a support structure for the industry."