Sony Corp. and Panasonic Corp. have agreed to jointly develop televisions using OLED displays as they try to rebound from a combined ¥1.2 trillion in losses last year.

Japan's two biggest makers of TVs aim to establish mass-production technology for organic light-emitting diode panels next year, they said in a statement Monday. They didn't set target dates for introducing OLED sets.

The partnership is the first between the main TV operations at the two companies, which are losing money as the strong yen erodes overseas earnings and as competition from South Korea's Samsung Electronics Co. and LG Electronics Inc. intensifies. The two South Korean companies have said they will introduce OLED models by Dec. 31.