Dell Computer, the leading direct seller of personal computers, has agreed to invest $200 million (€186 million) in Samsung Electronics of South Korea in a move to secure supplies of flatpanel displays used in portable PCs. Samsung said Dell had agreed to purchase $200 million in bonds, convertible to shares beginning in 12 months time. The bond purchase is related to a deal in which Dell agreed to buy flat-panel displays worth about $8.5 billion over the next five years, said Samsung.

The displays, which have been in short supply, are manufactured primarily in Japan, South Korea and Taiwan. Concerns about shortages have been heightened by the earthquake in Taiwan.

Dell said shortages of flat-panel displays had retarded its growth. In the second quarter, Dell's sales of laptop computers jumped 49 per cent.

However, the US PC manufacturer - one of Ireland's largest employers - said it "could have grown faster" were it not for the display supply problem. The deal with Samsung would assure "long-term supplies of critical components in a very fast growing market", said Dell.