LED supplier Universal Display Corp said it will license certain technologies and sell materials to a unit of Samsung, to enable the Korean electronics company to develop next generation flat-panel displays.

The Ewing, New Jersey-based Universal's stock was up 24 percent at $43.07 on Tuesday morning, making it one of the top percentage gainers on Nasdaq.

Universal has more than 1,000 patents for technologies and materials, which are vital for manufacturing organic light emitting device (OLED) panels used in smartphones and tablets.

OLED panels, which are expected to overtake liquid-crystal displays (LCD), are more energy efficient than conventional LCDs and have clearer picture quality.

Samsung has a near monopoly in the market for panels with active-matrix OLED (AMOLED), a technology which is increasingly being used in high-end smartphones and tablets and has been touted as the future of large-sized TV display.

The agreements to license patents of OLEDs and sell materials will run through the end of 2017, Universal said in a statement.

(Reporting by Divya Sharma in Bangalore; Editing by Roshni Menon)