SAN JOSE, Calif., Nov. 10 -- Philips Flat Display Systems, a business group of Royal Philips Electronics of the Netherlands, has entered into a joint development agreement with Rainbow Displays Inc. (RDI) of Endicott, N.Y., to produce large active matrix liquid crystal displays for various consumer and business applications. Under the agreement, Philips will take a minority equity stake in RDI. The displays utilize a design process known as tiling, in which several smaller-sized displays are combined to produce a single large flat display without visible seams. Philips attributed demand for larger-scale flat panel displays to consumer adoption of high-definition TV and digital TV, along with the increased use of displays in public areas such as airport terminals, stock exchanges and entertainment venues.