As well as being thinner and more difficult to break, the flexible panel that uses a plastic base instead of glass will allow greater freedom in smartphone design. One possibility is a handset that can be looped around a user's wrist.
The panel may also be utilized for displays installed on the curbed surface of a car dashboard.
Japan Display, which specializes in small and midsize LCDs, said it plans to begin mass production in 2018.
It has been difficult to produce LCD panels in curved shapes because they generally use glass as a substrate, which doesn't bend.
Japan Display said advanced technological know-how enabled it to stabilize the liquid crystal on the flexible substrate.
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