Sony and Sharp have forged an alliance to help them meet the growing demand for liquid crystal display televisions. Sony is to take a one-third stake in Sharp's $3.5bn (£1.8bn) LCD panel factory, which is due to be completed in March 2010.

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LCD panels have traditionally been lagging behind CRT monitors in terms of color response, saturation, accuracy and overall black-level response. Because LCDs are "always lit" by a backlight, deep dark blacks have been the Achilles heel of LCD technology.

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LG Philips LCD Co. said Wednesday it has developed the world's largest liquid crystal display screen.

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About 400,000 "Bravia" brand liquid crystal display (LCD) and rear-projection TVs launched last year may malfunction due to faulty software, Sony has admitted.

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