With a new plant scheduled to open in July 2011, Samsung Mobile Display expects to ease the presently-difficult situation of meeting the ever-increasing demand for its ultra-thin screens for smartphones and other products.

The new facility, located near Seoul, will help bring about a notable increase in Samsung Mobile Display’s production capacity – increasing the production ten times, from the current production of 3 million screens per month to 30 million a month.

Talking about the new plant, for the setting up of which Samsung is spending nearly $2.1 billion, Lee Woo-Jong, Samsung’s VP of marketing for the display business, said in a Monday e-mail to Dow Jones Newswire: “We've put in a great deal of effort to move up mass production.”

The supply shortage of Samsung’s ultra-thin screens has largely restricted the production of some of the high-profile handsets, including Verizon’s HTC Droid Incredible and Sprint Nextel’s HTC Evo 4G. Both the handsets use Samsung’s brighter and more power-efficient active-matrix organic light-emitting diode – AM-OLED - displays.

Nonetheless, the shortage of supply of the screens has not had any dampening effect on the Samsung Mobile Display’s expectations, due to the strong demand in the recent times. According to Lee, the company is projecting that the number of devices using AM-OLED screens will increase by almost 35 times to 700 million units by 2015.