Up to 100 new high-tech jobs are to be created in Shannon.
OLED Material Manufacturing and PPG confirmed a multi-million euro capital investment at its Co Clare plant.
In a statement, the company claims that it will "broaden the global footprint and increase the production of Universal Display Corporation's energy-efficient, high-performing UniversalPHOLED® materials to meet growing organic light emitting diode market demand and evolving industry requirements".
The announcement has been welcomed by Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar.
Mr Varadkar said: "This major announcement by OLED Material Manufacturing and PPG is a welcome boost to the Mid-West region.
"It will make a significant contribution to Shannon and the Irish economy in terms of job creation, investment and innovation.
"Technology is one of the fastest-growing sectors here in Ireland and globally, and I wish the team continued success."
With headquarters in Pittsburgh, the company operates in more than 75 countries and reported net sales of $13.8 billion in 2020.
Director of OLED Material Manufacturing Limited Austin McCabe said: "Our manufacturing expansion in Ireland allows UDC to strengthen its mission, which centers on enabling our customers and fostering the proliferation of energy-efficient OLED display and lighting applications in the consumer landscape.
"Leveraging UDC Ireland’s presence, the site’s infrastructure and the Mid-West region’s top-level talent, we are excited about the new Shannon facility.
"Together with our long-term partner, PPG, this multi-million-euro investment will expand the global manufacturing footprint for UDC’s proprietary state-of-the-art phosphorescent emissive materials to meet the substantial growth forecasted for the OLED market."
Meanwhile, PPG Plant Manager, Shannon Gerry Cahill added: "This project will bring a broad spectrum of jobs, a large number of which are highly skilled, to the Mid-West region.
"PPG has been producing high-performance OLED materials for UDC for the past 20 years.
"The expansion into Ireland with the addition of the Shannon facility shows confidence in not only the UDC-PPG partnership but also in Ireland as a place in which to invest and do business.
"In this regard, we are thankful for the support of the Irish government through IDA Ireland."