ITRI developed a manufacturing process for the thin displays and AU is in the process of converting an old factory to mass produce them, according to John Chen, general director of the Display Technology Center at ITRI.

AU Oprtonics confirmed the joint research project with ITRI but declined further comment.

"The beauty of this technology is you use today's production technology," he said, adding that there's no need to invest billions of dollars in a new factory, which would increase the price of the technology and any end-products it finally went into.

The partnership could lead to thin, flexible displays that could be added to mobile phones for a instant, pull-out screen to wearable screens on clothes or larger rolled up screens that serve the daily news at breakfast every day.