Nikkei Electronics Asia -- January 2010
Analysis
The Large LCD Manufacturer AUO's Strategy for the E-Paper Market

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Jan 1, 2010 00:07 C.T. Liu, Senior Vice President, Au Optronics Corp.

This article is based on a speech given by C.T. Liu of AUO at a forum held simultaneously with FPD International 2009, hosted by Nikkei BP Inc., on Oct. 30, 2009.

E Ink Corp. immediately springs to mind when electronic paper (e-paper) is mentioned. The firm's e-paper film commands the overwhelming share, but with the rapid growth of the e-paper market recently, LCD panel major Au Optronics Corp. (AUO) is determined to end E Ink's reign (Fig. 1). AUO acquired SiPix Imaging Inc. in March 2009. It is preparing to supply e-paper modules to the market combining SiPix Imaging's e-paper film with its own thin-film transistor (TFT) substrates.

Fig. 1 AUO Emerges as Rival for E Ink
AUO acquired SiPix Imaging in Mar 2009, marking its full-fledged entry into the e-paper market. It is competing head-on with PVI, which has announced plans to acquire e-paper leader E Ink. Diagram by Nikkei Electronics.

We acquired e-paper manufacturer SiPix Imaging and are working with them to advance our e-paper business. We actually began cooperative work in October 2008 and shipped our first products in June 2009: e-paper for electronic tags used on shelf labels, for example. In August of the same year we began shipping e-paper for electronic labels, followed that September by 6- and 9-inch e-paper for e-book readers. In December 2009 we plan to begin shipping 4.3-inch e-paper for e-book readers. We've released a range of different products in a very short period.

E-Paper Technology Creates New Markets

As a display manufacturer primarily active in LCD panels, many people want to know why we have such an interest in e-paper. The reason is that we feel that of all the next-generation display technologies, e-paper is the one that will create entire new markets. It represents a new business opportunity for us.

Organic LED panels are one such next-gen display technology. It is clear that they offer significant performance improvements over conventional LCD panels, for example in contrast ratio and thinness. We don't think they will actually create new markets, though. It seems likely that some displays in mobile telephones, flat screen televisions, and other devices will transition to OLED panels, but the display technology will not create new demand in those markets.