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Stewart Hough, VP Business Development, Cambridge Display Technology, UK
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UK company Cambridge Display Technology (CDT) focuses on the R&D and commercialization of polymer technology for flat-panel displays and lighting. The company's light-emitting polymer (LEP) technology is aimed at a range of electronic display products -- for information management systems, communications equipment, entertainment systems, etc.
CDT is expediting the commercialization of LEP technology with a global business strategy which includes various co-developments with other companies in various display and related technology areas.
Stewart Hough, VP of business development at CDT, spoke to NEA about the company's initiatives and its business strategies over the coming 3-5 years.
NEA: The worldwide market for OLED displays is forecast to grow considerably. What market forces are behind such growth? What are the major market segments?
Hough: The organic light-emitting diode (OLED) display industry is made up of two technology platforms: the light-emitting polymer (LEP) from Cambridge Display Technology; and the small molecule OLED (SMOLED) developed by Eastman-Kodak. LEPs provide a basis for the development of new products, such as wristwatch TVs and flexible or formable displays.
Displays on plastic or flexible substrates -- requiring no color filters, polarizers or back-lighting, and offering superior visual performance with wide viewing angles, rich color saturation and fast response times -- promise both significant technical advantages and savings in manufacturing costs. Such strong deliverables create exciting possibilities for market applications, such as mobile communications, portable electronics, broadband devices, games systems, entertainment, digital imaging, 3G applications, etc.
The current expansion of the mobile and Internet communication segments, coupled with the strong advantages associated with LEP technology, have contributed to a broad sense of optimism in market forecasts. Based on the capacity calculations of industry players from both the mobile and Internet communication segments, OLED display revenue can be expected to grow considerably.
NEA: What impact has the current slowdown in the electronics industry had on the development of LEP technology?
Hough: Despite the slowdown in the electronics industry, there has been no corresponding slowdown in the pace of technological development. With the market potential offered by LEP technology, industry players have been boosting development efforts in a race to roll their first products out onto the market. In fact, some of the more aggressive players, such as Ritek of Taiwan, have already begun fully-automated mass-production of LEPs. Ritek displayed its first products at electronicAsia in Hong Kong last October.
NEA: How do you plan to further promote LEP technology, and to encourage its application in more products?
Hough: CDT holds the IP for LEP technology. This, combined with our specialist knowledge of the technology, strategically positions us to have some influence on all aspects of the development of the LEP display market -- from the availability of materials, to device architectures, processes, electronic drivers and manufacturing tools, etc.
Currently, we have six licensees -- Philips, Seiko Epson, Delta, Osram, Dupont and MED -- and we are in discussion with Toshiba and Fujitsu of Japan. We are working closely with our licensees, transferring our technical know-how and sharing exclusive technical knowledge -- knowledge about, for example, how various materials interact with one another, and any repercussions such interactions might have on the manufacturing process; and knowledge about the specific processes used for cleaning and preparing substrates, and for encapsulating and sealing finished displays, etc.
We have been approached by many potential licensees, but we practice critical selection, and we evaluate potential licensees for their ability to drive the market. We also work closely with players from less obvious industry segments, exploring the possibilities for integrating LEP technology into other industry-specific applications. These include players in the paper, food packaging, printing, architectural display, and other segments.
Our company has recently invested US$25 million in a technology development pilot line in the UK to build process development facilities for inkjet technology using LEPs.
NEA: How does CDT's LEP compare with Kodak's SMOLED? Are the two technologies targeted at the same market segments and applications?
Hough: Although Kodak's SMOLED has a 10-year head-start on the LEP in terms of development, LEPs are expected to gain a greater share of the market because of their many technological advantages. These advantages include higher efficiency, lower power consumption, and the incorporation of materials that are less sensitive to moisture and which therefore provide better temperature stability. With such advantages, LEPs are extremely well-suited for application in portable electronics and other mobile devices. And the lower manufacturing costs associated with LEPs should also help them to gain a larger share of the market.
NEA: How important is the Asian market to CDT? What is your presence in Asia?
Hough: Indeed, Asia is expected to become the largest market for LEP displays. Currently, there is no volume manufacturing of LEPs in the US, and there are limited manufacturing facilities in Europe. But Asia has 80% or more of the major volume manufacturing facilities.
CDT is working closely in all aspects of the manufacturing chain in order to help licensees get to market and reach volume production in the shortest time possible. These efforts include promoting and ensuring the availability of basic materials with companies such as Sumitomo and Dow Chemical; working to ensure optimization of manufacturing tools and facilities for polymer production; and transferring technological know-how through constant meetings with Asian companies.
So far, among our licensees Osram has setup a manufacturing facility in Penang, Malaysia, and both Ritek and Delta of Taiwan have already established fully automated facilities which are ready for volume production. Other players in Japan and Korea, such as Seiko-Epson, are planning to build facilities.
For closer proximity to the market, CDT is looking at opening its first Asian office in Japan some time early in 2002.
NEA: How would you summarize CDT's business focus for the next 3-5 years?
Hough: With the breadth of potential market applications for LEPs, CDT will focus on building close alliances with key players in the various segments of these markets. To enable our licensees to stay ahead with commercial entry into new markets, joint technology developments are also amongst our initiatives. The aim is to move from monochrome displays to full color passive displays, and then on to full color active displays and flexible substrate displays.
To avoid over-saturating the market, we will continue to be selective in our choice of licensees. This should help prevent any overlapping of market sectors, which could cannibalize profitability. We plan to establish several strong licensees in each market segment, and we are also currently in discussion with potential licensees in Asia looking for turnkey solutions. There are also plans to set up an R&D center in the US in the near future.
by Ng Hooi Ming, Singapore
(April 2002 Issue, Nikkei Electronics Asia)
CDT is expediting the commercialization of LEP technology with a global business strategy which includes various co-developments with other companies in various display and related technology areas.
Stewart Hough, VP of business development at CDT, spoke to NEA about the company's initiatives and its business strategies over the coming 3-5 years.
NEA: The worldwide market for OLED displays is forecast to grow considerably. What market forces are behind such growth? What are the major market segments?
Hough: The organic light-emitting diode (OLED) display industry is made up of two technology platforms: the light-emitting polymer (LEP) from Cambridge Display Technology; and the small molecule OLED (SMOLED) developed by Eastman-Kodak. LEPs provide a basis for the development of new products, such as wristwatch TVs and flexible or formable displays.
Displays on plastic or flexible substrates -- requiring no color filters, polarizers or back-lighting, and offering superior visual performance with wide viewing angles, rich color saturation and fast response times -- promise both significant technical advantages and savings in manufacturing costs. Such strong deliverables create exciting possibilities for market applications, such as mobile communications, portable electronics, broadband devices, games systems, entertainment, digital imaging, 3G applications, etc.
The current expansion of the mobile and Internet communication segments, coupled with the strong advantages associated with LEP technology, have contributed to a broad sense of optimism in market forecasts. Based on the capacity calculations of industry players from both the mobile and Internet communication segments, OLED display revenue can be expected to grow considerably.
NEA: What impact has the current slowdown in the electronics industry had on the development of LEP technology?
Hough: Despite the slowdown in the electronics industry, there has been no corresponding slowdown in the pace of technological development. With the market potential offered by LEP technology, industry players have been boosting development efforts in a race to roll their first products out onto the market. In fact, some of the more aggressive players, such as Ritek of Taiwan, have already begun fully-automated mass-production of LEPs. Ritek displayed its first products at electronicAsia in Hong Kong last October.
NEA: How do you plan to further promote LEP technology, and to encourage its application in more products?
Hough: CDT holds the IP for LEP technology. This, combined with our specialist knowledge of the technology, strategically positions us to have some influence on all aspects of the development of the LEP display market -- from the availability of materials, to device architectures, processes, electronic drivers and manufacturing tools, etc.
Currently, we have six licensees -- Philips, Seiko Epson, Delta, Osram, Dupont and MED -- and we are in discussion with Toshiba and Fujitsu of Japan. We are working closely with our licensees, transferring our technical know-how and sharing exclusive technical knowledge -- knowledge about, for example, how various materials interact with one another, and any repercussions such interactions might have on the manufacturing process; and knowledge about the specific processes used for cleaning and preparing substrates, and for encapsulating and sealing finished displays, etc.
We have been approached by many potential licensees, but we practice critical selection, and we evaluate potential licensees for their ability to drive the market. We also work closely with players from less obvious industry segments, exploring the possibilities for integrating LEP technology into other industry-specific applications. These include players in the paper, food packaging, printing, architectural display, and other segments.
Our company has recently invested US$25 million in a technology development pilot line in the UK to build process development facilities for inkjet technology using LEPs.
NEA: How does CDT's LEP compare with Kodak's SMOLED? Are the two technologies targeted at the same market segments and applications?
Hough: Although Kodak's SMOLED has a 10-year head-start on the LEP in terms of development, LEPs are expected to gain a greater share of the market because of their many technological advantages. These advantages include higher efficiency, lower power consumption, and the incorporation of materials that are less sensitive to moisture and which therefore provide better temperature stability. With such advantages, LEPs are extremely well-suited for application in portable electronics and other mobile devices. And the lower manufacturing costs associated with LEPs should also help them to gain a larger share of the market.
NEA: How important is the Asian market to CDT? What is your presence in Asia?
Hough: Indeed, Asia is expected to become the largest market for LEP displays. Currently, there is no volume manufacturing of LEPs in the US, and there are limited manufacturing facilities in Europe. But Asia has 80% or more of the major volume manufacturing facilities.
CDT is working closely in all aspects of the manufacturing chain in order to help licensees get to market and reach volume production in the shortest time possible. These efforts include promoting and ensuring the availability of basic materials with companies such as Sumitomo and Dow Chemical; working to ensure optimization of manufacturing tools and facilities for polymer production; and transferring technological know-how through constant meetings with Asian companies.
So far, among our licensees Osram has setup a manufacturing facility in Penang, Malaysia, and both Ritek and Delta of Taiwan have already established fully automated facilities which are ready for volume production. Other players in Japan and Korea, such as Seiko-Epson, are planning to build facilities.
For closer proximity to the market, CDT is looking at opening its first Asian office in Japan some time early in 2002.
NEA: How would you summarize CDT's business focus for the next 3-5 years?
Hough: With the breadth of potential market applications for LEPs, CDT will focus on building close alliances with key players in the various segments of these markets. To enable our licensees to stay ahead with commercial entry into new markets, joint technology developments are also amongst our initiatives. The aim is to move from monochrome displays to full color passive displays, and then on to full color active displays and flexible substrate displays.
To avoid over-saturating the market, we will continue to be selective in our choice of licensees. This should help prevent any overlapping of market sectors, which could cannibalize profitability. We plan to establish several strong licensees in each market segment, and we are also currently in discussion with potential licensees in Asia looking for turnkey solutions. There are also plans to set up an R&D center in the US in the near future.
by Ng Hooi Ming, Singapore
(April 2002 Issue, Nikkei Electronics Asia)
