Japans Ulvac Inc says that demand for gear used in making small and next-generation OLED display panels for smartphones is strong, making up for a fall in demand for large liquid-crystal display (LCD) equipment, according to a recent report in Reuters.

Ulvac competes with Tokyo Electron and Applied Materials of the United States in equipment for making chips, flat-panel displays and solar cells.

Ulvac president, Hidenori Suwa, told Reuters in an interview he was in contact with two companies about gear for new facilities in Japan to make small panels for use in smartphones.

His comments came after recent media reports that Sharp Corp and Toshiba Corp were planning to build new facilities to make small panels intended for use in Apple Incs iPhone.

In solar cell technology, Suwa said he saw great potential for thin-film silicon panels, even though rival gear-maker Applied Materials withdrew from the market in July, saying it was unprofitable.