OPTOLINK Q3, 2010

Courtesy

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OptoLink International Edition (OLIE) is a quarterly magazine published by the Photonics Industry and Technology Development Association (PIDA).

Contents
Industry News
4 7 13 17 19 25 29
What is the Next Killer Application in FPD Industry? E-paper Evolution: A Long Journey 3D New Era AMOLED Supply Shortage Surfaces with Display Demands LED Shines for Large-area Display Backlighting Energy Efficient Display for Mobile Devices Panel Lawsuit Reflecting the Heated Competition

5F., No. 9, Roosevelt Road, Sec. 2., Taipei, Taiwan, 10093. www.pida.org.tw Tel.: +886-2-2396-7780 Fax: +886-2-2341-4559

Publisher:
Frank Ma, CEO of PIDA

Editorial Team:
Angel Chiou, Dan Guo, Murphy Lin, Stephy Chen, Karen Ho, Deaphne Kuo, Jason Lu, Delux Chen , Emily Hu

Exhibition Watch
32 35 39 42 45 49 51 53
Photonics Festival in Taiwan 2010 Boasting the Largest Scale of Photonics Exposition in Taiwan to Date Exhibitors Demonstrating Various Technologies in Photonics Festival The 15th IOA Meeting Targets on Green Actions 2010 Outstanding Photonics Product Award Winners 2010 FPD Green Product Competition Winners

Art Designer:
Foung-Jean Guo

Director of Market & Bussiness Division:
Ryan Chung

Sales Contact:
Ginger Chen, Pamela Hsiao, Cathy Zhang, Ben Tsai, Henry Nieh, Allen Lee, Jerry Lee

Company Profiles
Advanced Research Park— the New Focus of Central Taiwan Science Park Southern Taiwan Science Park— the Pivotal PV Manufacturing Base in Taiwan Elan— More Competitive, Better Solutions

Advertising:
Vanessa Hou ad@mail.pida.org.tw

Subscriptions:
Simon Huang simon@mail.pida.org.tw

Editorial Submissions:
Angel Chiou (angelchiou@mail.pida.org.tw)

What is the Next Killer Application in FPD Industry ?
Recovering from those desperate days in 2009, everyone is looking forward to the resergence of flat panel display (FPD) industry, and most importantly the new “killer application” that will stimulate demand as netbook did in 2008. After the miracle created by netbook, what to expect next ?

By Melinda Ming

aiwanese Flat Panel Display (FPD) industry has been through its worst year in 2009. The annual sales was 16 percent YoY declined to about US$37,130.3 (NT$1,225,300, 1:33) million, of which, the golden product TFT-LCD panels shipment downed to US$24,539.39 (NT$ 809,800) million. Despite so, local suppliers still are optimistic of forecasting FPD shipment a positive growth rate in 2010. It is believed the hottest line-up in Taiwan Optoelectronics industry, measured 73 percent of the annual output, reached US$975.75 (NT$ 32,200, 1:33) million; the first quarter of 2010 increased 72 percent over the same period in 2009, according to a report from IEK ITRI.

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up to 100 percent of growth rate, reaching one million US dollar, before 2012. Applications of Taiwanese made e-paper focuse on both consumer electronics and industrial applications. E-books or e-readers, for instance, are applied for the former, as e-shelf-label and e-signage are seen the best for mass-producers.

3 D, E-paper, Touch Dominate the Future Market The concept of Taiwanese made FPD has turned into environment-friendly in recent years. Large-sized and highresolution displays no longer the only focus in the mainstream. Instead, 3D, e-paper, and flexible display so-called “go green” products, featuring light-weighted, thin, and power-saving, now dominates among the suppliers’ R&D labs. Coverage from Taiwanese newspaper Economic Daily News in June 2010 says that applications in e-paper, 3D display, and touch panel would bring up the FPD sales

Major Taiwan Suppliers In terms of supplier base, the industry in the island is structured by a small number of large enterprises that dominate the market. E-paper, for instance, only three suppliers in the island seen active and mass-producers; they are Prime View International Co Ltd (PVI), AU Optronics Cor (AUO), and Delta Electronics Inc (Delta Electronics). 3D display, on the other hand, attracts Taiwanese suppliers more attention, leading companies like Chunghwa Picture Tube Ltd (CPT), Chimei Innolux Corporation (CMI), AUO, and Delta Electronics. Most of them started as panel manufacturers; except of Delta Electronics, a power supply provider. Supplier number of touch panel, however, is uncountable, since the entry barrier of small sized panels is relatively lower than e-paper and 3D.

AUO AUO, a Taiwan-based global leader of TFT-LCD panels, is probably the most active player with full range of optoelectronic products from 3D display, e-paper, to flexible display in Taiwan. The company unveils in Q2 2010 the earliest release of transparent AMOLED incell touch panel and the largest in size of projected capacitive multi-touch LCD display. Besides, the supplier also has a gigantic 65-inch HD LCD panel, with high brightness at 650 nits and eight viewpoints, glasses-free features and ready for all 3D and simular 3D contents. Meanwhile, the supplier exposed several types of e-paper using SiPix Microcup technology for applications including e-shelf-label, e-book, and built-in touch e-books. It also has 20-inch e-paper display module for e-signage, foldable e-book and flexible e-paper modules. Of the new releases, a prototype of 2.4-inch transparent multi-touch display is the one that catches eyeballs, and is apparently suitable for handhelds such as mobile phones, GPS devices, portable data assistant, etc. PVI Newly changed name to E Ink Holdings Inc., PVI is believed the earliest panel supplier since 1992. While PVI acquired E Ink in 2009 for about US$450 million, many investors and analysts doubted

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about the deal. After these months, the supplier recently disclosed that its gross net eventually doubled since Amazon’s Kindle was exposed in marketplace. At the present, PVI is believed the main player in e-paper marketplace by supplying over 20 million electronic paper display in the filed. PVI’s E Ink branded e-paper displays take more than 90 percent of market share, mainly for clients of e-reader; Amazon’s Kindle, Sony’s e-Reader, for instances, in full range of electronic readers, such as e-books, e-newspapers, e-textbooks, wristwatches, smart cards, e-labels, mobile phones, e-signage, etc. PVI believes that the new product launch time supposedly scheduled in Q3 2010, when is peak season for e-readers shipment. As of the interview, the supplier spends almost 3 percent of annual revenue on new products, while some of its counterparts may make an effort by only a department of workforce on e-paper R&D. Regarding to flexible/foldable panels, the supplier has the modules technically ready. However, the commercialized products will have to wait until the price approachable, accordingly.

Fig.1 3D panel launched by AUO

Courtesy: PIDA, 2010 6

Fig.2 PVI’s Color E-paper exhibited in Display Taiwan 2010

SolLink Despite of E-Ink based Vizplx imaging technology had taken the majority of e-readers shipment, new comers still in plan to reach the market. SolLink is the instance, planed to make threats on market share of PVI’s E-Ink. A joint venture company of Taiwanese Foxlink Group and US-based Qualcomm MEMS Technologies (a subsidiary of Qualcomm Inc,), SolLink Inc. (SolLink) opened its fabrication plant since 2009, and announced in Q2 2010 to start mass-

Courtesy: PIDA, 2010 6

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production for e-paper. With its Mirasol display technology, SolLink provides e-paper featuring color and touch-screen functions, which in the marketplace rarely has been seen. Meanwhile, Mirasol-based displays compatible with video conferencing function, which helps to take over educational market and attract advertisers for flooding ads.

(CHT), to provide Taiwanese audiences five World Cup games in 3D image. The project involved a 300-inch screen and projector that is featured of 25,000 lumens of brightness and 3-chip DLP technology.

Delta As one of key players in Taiwan e-paper development, Delta Electronics is different from other rivals to apply Liquid Powder Display (LPD) technology for its e-paper. The supplier eventually developed a 13.3-inch color e-paper prototype in the technology after all, featuring higher quality of 4,096 colors and faster reaction rate of 0.2ms, compared to its rivals. Despite the advanced offer, the supplier has no plans to develop its own branded e-readers at all. Their R&D focus is to develop displays with features of larger size, higher reaction rate, and more colors, as the company believes large-sized e-paper is the promising for management level of customers, a niche market the supplier keen on for better profit margin rate. In fact, Delta Electronics could not wait to show off its latest color e-reader in Q2 2010, even though the new product launch is scheduled in December same year. The new e-reader emphasizes size, colors, and weight; based on Bridgestone’s e-paper technology. It has a 13-inch color display, but weighs only half of Apple’s iPad. Other than e-paper, Delta Electronics is also active in 3D marketplace. The supplier cooperated with the largest Telecom carrier in the island: Chunghwa Telecom

CMI CMI, a very low-profile company located in southern Taiwan, provided 16 million of pieces of touch screens in 2009, occupying ab out 2.6 p ercent of market share worldwide. Of the shipment, 3 million piece were high-ends based on capacitive technology. Despite the company has no comments on its future plan of R&D and shipment, it is believed in marketplace that its output supposedly will break up 500 million pieces in 2010. It is observed that most of the company’s clients from telecommunication industry, like mobile phone producers. Most of its products applied for iPhone, 3/3.5/4G mobile phones, and so on. Companies of Mid-to-small-sized Panels Other than star players in marketplace, there are still a number of middle and small sized companies struggling in competition. Some of them publicly listed in Taiwan stock market and involved in touch panels/ screens, in particular for small sized devices, like smart phones, media centric tablet PC, and iPad. Wintek Corporation and Cando Corp. are two examples. Both of them are mass-producers. As a subsidiary of AUO, Cando received support from its mother company to create the mostly massive production lines for touch screens, expected a monthly output of 50 thousand pieces in 2012.

The Next Killer Application? In conclusion, it is believed by Taiwanese suppliers that flexible color e-paper and 3D display will be the main focus in the coming years, since devices connected to consumer entertainment gadgets (i.e. 3D TVs, cars, etc) for real time access to Internet content like movies are seen the trend for the next decade. Traditional portable navigation devices and handheld games are losing market share of the touch screen as smart phones and other touchenabled mobiles gear more functional. Go down to the details, it is best applied through the consumer electronics (i.e. LCD TV, digital readers, portable media players, high-end mobile phones, etc.) and in-car accessories (i.e. back-seat monitors, rearview mirror monitors, GPS navigators, etc.). Providers of total solution and niche products will be beneficial most and growing in sales. Even though FPD future looks promising, there is still no general agreement what killer applications would be applied by the Internet connectivity between home appliance control and net surfing. Thus, none of the above-mentioned suppliers plan to promote own brand for now, neither in the near future, as of the interview.

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E-paper Evolution: A Long Journey
Since 2008, e-paper industry has entered the emerging stage with double-digit growth with e-book reader as the target market. This year, e-paper still enjoys a steady growth when facing the threat of iPad-like products. However, can it survive from the poverty of color richness?

By Tiffany Yeh

ccording to the statistics from Photonics Industry and Technology Development Association (PIDA), the production value of Taiwan e-paper industry jumped from USD 100 million in 2008 to 403 million in 2009 with a triple revenue growth, as figure 1 shows. PIDA predicts e-paper will continue its robust annual growth from 2010 to 2013. The product value is projected to reach USD 940 million this year with a strong growth rate at 133%, and continue to reach USD 1,500 million in 2011. In 2013, the production value is forecasted to an amount that surpasses USD 3,000 million, around 37 percent of increase in comparison with the figure of USD 2,180 million in 2012. International Data Corporation (IDC) also has a rosy outlook toward the e-paper industry. The statistics shows that the e-paper industry is forecasted to have a two- or three-digit growth rate in shipment volume throughout 2009 to 2013. The research firm indicated that the volume had reached 2.8 million units in 2008, and 8.6 million units in 2009, presenting a 207 percent of growth rate. The volume is predicted to amount to 19.8 million in 2010, to 41 million units in 2011, to 76 million units in 2012, and to 130 million units in 2013—a definite rising trend. Another market intelligence firm, DisplaySearch, also posted an optimistic

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outlook toward e-paper industry. The research firm forecasts that the global e-paper display market will grow to 1.8 billion units and $9.6 billion in revenues in 2018, from 22 million units and $431 million in revenues in 2009, for a compound annual growth rate (CAGR) of 41%for revenues and 64% for units.

In worldwide market scale, the e-paper industry is forecasted to go into the growth stage since 2011 with the help of technology improvement in high color saturation and full color features. Color flexible e-paper technology is seen as killer technology in the following years. That is to say—if the technology evolution does succeed.

Fig.1 E-paper Production Value by Applications
Unit 3,000 million USD

2,500

2,000

1,500

1,000 500

0 2008 Other Smart card E-tag Mobile device & public display E-reader 0.3 2.3 4.7 15.8 76.9 2009 29.0 12.1 20.2 107.2 234.5 2010(e) 63.9 30.1 49.8 232.2 564.0 2011(f) 82.5 49.5 96.0 357.0 915.0 2012(f) 98.1 82.8 154.8 536.3 1,308.0 2013(f) 120.0 126.0 270.0 744.0 1,740.0

Courtesy: PIDA, 2010 6

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Fig. 2 Four Major E-paper Technologies Comparison

Micro-capsule
Drive Contrast Ratio Reflectance Response Time Supplier Manufacturer AM ~15:1 > 40% 200~260 ms E-Ink EIH, NEC, Chi Lin, LG, Plastic Logic, Poly Vision

Micro-cup
Drive Contrast Ratio Reflectance Response Time Supplier Manufacturer AM ~10:1 40% ~275 ms SiPix AUO

QR-LPD
Drive Contrast Ratio Reflectance Response Time Supplier Manufacturer AM & PM ~10:1 ~30% 0.2 ms Bridgestone Hitachi

Ch-LCD
Drive Contrast Ratio Reflectance Response Time Supplier Manufacturer
Courtesy: E-Ink, SiPix, Bridgestone edited by PIDA

AM & PM ~10:1 > 25% ~300 ms KDI, Fujitsu, FronTech, ITRI Cinaflex

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Technology Competition Speaking of technologies, four major technologies are involved in competition as figure 2 shows— Cholesteric liquid crystal, Quick Response Liquid Power Display (QR-LPD) and Electrophoretic which is composed of Micro-capsule and Microcup. Among all, Micro-capsule technology has the most supporters in module supply because of its mass production capability, and dominates 90 percent of the worldwide share of e-paper industry. Its supporters include E Ink Holdings Inc. (EIH), NEC, Plastic Logic, LG Display and Polymer Vision. At present, EIH, previous Prime View International Corporation Limited (PVI), is the largest supplier of e-paper modules in the world. EIH is leading in both production volume and technology, and is the solely e-paper module supplier for Amazon Kindle and Sony’s e-Reader. Regarding other technologies, Micro-cup and QR-LPD are emerging technologies owing to low cost and fast response advantages. AUO and SiPix use Micro-cup technology, and Delta and Hitachi utilize QR-LPD technology. Kent Display, Fujitsu and ITRI are engaged in cholesterol liquid crystal technology instead. Since the market is dominated by EPD technology, new entrants have to possess new technology or new business models to maintain competitiveness in the e-paper industry. Advanced Technologies Bring New Hopes Electro-wetting Display (EWD) is one emerging technology that features simple structure and fast response time. The

technology requires no backlight, liquid crystal, or color filter to make color images. Also, the technology uses water and harmless oil dye to fit for green design and low cost requirement. Chunghwa Picture Tubes Ltd. (CPT), Taiwan’s third largest LCD panel maker, is developing e-paper panels with EWD technology. The company develops a 6-inch e-paper display with capacitive touchscreen (TSP) functionality, and offers a series of transmissive, transflective and reflective LC displays for other e-reading solutions. ITRI also sees EWD technology as a promising technology and believes this technology gives a chance for transparent display development by using water. Today, ITRI is capable of offering a 6-inch EWD display with self-developed Ink-jet printing technologies. The other technolog y that brings new possibility is Mirasol technology, which works by reflecting light and thus wavelengths interfere with each others to reach color images. It is sunlight readable and low power consumption. Mirasol technology is backed up by Qualcomm Panel Manufacturing Ltd. and SolLink Inc.

10-inch) models went from one model in 2003 and 2004 to twenty models in 2009. The worldwide e-paper display market for e-books and e-textbooks (5-inch to 10inch) will have a notable growth from 1 million units in 2008 to 77 million units in 2018. Taiwan makers can offer dot-matrix and segment e-paer displays. Dot-matrix solutions consist of active matrix and passive matrix models. The other driving forces were e-tag and smart card, taking up 10 percent and 2 percent of the shipment value accordingly. It is a trend to enter new and niche applications, such as wristwatch, cell phone, digital schoolbooks and digital photo frames. The design trend is expected to move toward larger-sized applications like e-newspaper, e-paper magazines, e-posters, outdoor billboards and information banners.

Niche Applications Utilizing E-paper So far, Taiwan is the major supply center for e-paper display modules. Taiwan contributed around 90 percent of worldwide shipment. The e-book is the major driving forces of the e-paper industry. According to IDC statistics, e-book application took up 52 percent of e-paper module shipment value in 2009, and handheld devices and public display applications accounted for 26 percent. Based on DisplaySearch’s reports, the number of e-book/e-textbooks (5-inch to

Mainstream E-paper Commodities When it comes to market trends, color, flexible, larger-sized and touchscreen solutions are four latest and hot R&D directions to Taiwan suppliers. Nevertheless, the color e-paper market is in its infant stage. It is believed that color e-books will not reach high volumes before 2011 on account of its high price and technical challenges, even though colorization and saturation are key factors to drive future growth. At present, e-paper is still of low color saturation, with monochrome and 4,096 color solutions. Suppliers are moving toward highsaturation solutions with 26,000 colors or full color. Referring to production process, it

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is a trend to move toward roll-to-roll (R2R) process due to its fast and lowcost production, and enable long display length, available to 3 meters. ITRI has been working on Cholesteric LCD (ChLCD) technology with R2R process for electronic books and signage. ITRI indicated that the flexibility in length can offer a rollable display bigger than the device itself. ITRI announced a 10.4 inch QVGA color ChLCD with a single-layer design that is much thinner than traditional 3-layer designs.

The other production process that enables flexibility is EPLaR, which is adopted by EIH. EIH offers active matrix (AM) flexible EPDs with its proprietary MagicMirror reflective technology together and with the EPLaR process. The model is co-developed with Philips Research. The MagicMirror technology enables reflective TFT backplane manufacturing, and the EPLaR process leverage EIH’s a-Si TFT and module processes to manufacture flexible e-paper displays.

E-paper stands out among others by its characteristics, including sunlight readability, bi-stable image, lower power consumption, flexibility and lightweight. In compare with LCD technologies, e-paper display, without backlight, is a better technology for long-time reading, lightweight design and energy-saving solution.

AUO released e-book solutions based on SiPix micro-cup EPD technology

Chi Lin allies with E Ink to offer monochrome and color e-paper solutions

CPT exhibits its 6-inch color EPD at Display Taiwan 2010 show

Courtesy PIDA

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3D New Era
People rush into movie theaters to put on their 3D glasses. Paramount, Dreamworks, and Warner Brothers ascertained that they will no longer produce 2D films. The proliferating 3D entertainment has changed people’s viewing experience. What to expect next?

By Tiffany Yeh

ncouraged by the recent success of 3D cinema, the market for 3D displays is forecasted to take off in 2010, providing a welcome boost to the consumer electronics industry. 3D computers, displays, digital cameras/camcorders, projectors, Blu-ray disc players and more commodities are being introduced to the market. DisplaySearch, a research firm engaged in display industry, forecasts that the total stereoscopic 3D display market will grow from 0.7 million units and $902 million in revenues in 2008, to 196 million units and $22 billion in revenues in 2018. The compound annual growth rate (CAGR) is 75% in unit and 38% in revenue. DisplaySearch also points out that 3D-ready TVs will grow from 0.2 million units in 2009, to 64 million units in 2018. The 3D TV segment will be the largest application among all 3D products, generating $17 billion revenue in 2018 (see figure 1). Jennifer Colegrove, Director of Display Technologies at DisplaySearch explained, “A number of manufacturers of consumer electronics devices, including T Vs, monitors, notebooks, Blu-ray disc players, and digital cameras/camcorders/photo frames have aggressively promoted 3D in the home. In addition to consumer use of 3D displays, the technology has also been used for many professional applications and advertisement/public displays.”

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3D Feast Starts from PC Industry The fabless graphic processing unit (GPU) designer, nVidia, is a strong promoter of 3D technology in PC industry. GPU accelerates the speed of 3D game and 3D film production. Jen-Hsun Huang, the CEO of nVidia, is highly optimistic of future 3D development in PC world, especially in gaming community. The US-based IC design firm even developed

a proprietary 3D Vision Technology which adopts shutter glasses stereoscopic technique to generate three-dimensional visual effect. Stereoscopic and autostereoscopic (naked-eye) are two major domains of 3D technology. To wear glasses or not is the main difference between the two. Various techniques are used to create 3D imaging effect. Shutter glasses and polarization

Fig.1 3D Display Forecast
Unit: million units/ billion dollars 250 $ 25

Units

Revenues

200

$ 20

150

$ 15

100

$ 10

50

$5

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$0

Courtesy : DisplaySearch ( 2010/01 )

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glasses are dominating in stereoscopic field, while barrier and lenticular multiplexed 2D are main methods to deliver autostereoscopic 3D images. Shutter glasses are also called active glasses. The front-end system will require a signal emitter to response simultaneously with the computing unit. The glasses usually bundled with emitter, and the additional system may cost around $200. Polarizer glasses are passive structure and are cheaper. Both technologies are used in today’s 3D movie theaters. In this year’s Computex Taipei, 3D concept has emerged as the prominent must-have. As mainstream 3D films and 3D games are stereoscopic, the mature ecosystem makes the technology became the first to be commercialized. Major Taiwanese computer brand makers, including Acer and Asus, have

released 3D notebooks and desktop systems that require glasses. These computers present ultimate 3D visual experience to fulfill the desire of game enthusiastic and Blu-ray 3D home theater consumers. Polarizer-type systems are labeled as economic 3D systems. Shuttertype systems, on the other hand, are priced as premium line. Asus G51 3D is the world’s first gaming notebook with full support for shutter glasses 3D technology, and with special software that converts 2D to 3D for the best overall 3D results. G51 3D sets the standard for 3D excitement in the home and on the move. This laptop’s outstanding performance and unique features has bestowed Asus the highest honor of Best Choice Award in Computex. Projector makers also strive to be the early announcers of 3D projectors.

BenQ has launched the MP776ST and MP772ST projectors which are capable of displaying images and videos in 3D. Likewise, Optoma and ViewSonic respectively have introduced their 3D projectors. Due to short of 3D content for home entertainment, most stereoscopic 3D products aim at high-end and premium segment. PC gamers are expected to be early adopters for these fancy gadgets.

Table 1 3D Technologies
Shutter glasses (Active) Polarization glasses (Passive)

With Glasses (Stereoscopic)
Anaglyph (Passive) Head mount displays Holographic Volumetric

Without Glasses (Autostereoscopic)
Multiplexed 2D

Barrier Lenticular Depth

Courtesy : Chunghwa Picture Tubes, Ltd. ( 2010/03 )

Panel Manufacturers Invest on Four Major Technologies Being an important production center for display panels, Taiwan may be the most enthusiastic group in 3D panel development and manufacturing. AU Optronics (AUO), Chi Mei Innolux (CMI) and Chunghwa Picture Tubes (CPT) all have demonstrated their 3D displays to the audience. Both AUO and CMI are capable to produce major types of stereo and autostereo 3D panels to meet commercial and consumer needs. In panel perspective, each type of 3D technologies may have different requirement. Panel used for shutter glasses, for example, will need high frame rate panel that provides flickering above 120Hz. Notable TV brands such as Samsung, Sony and Panasonic have shipment of 240Hz panels. Polarizer glasses 3D will take pattern retarder panels instead. Today, the top-seller 3D TVs are mostly shutter-glasses stereoscopic technology. Despite the fact that polarizer-type 3D is popular in cinema, the passive glasses technology is hard to penetrate in home entertainment because large-sized pattern retarder LCD panels are very expensive. Naked-eye 3D panels, meanwhile, are difficult to produce and more costly. The

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principle of auto-stereo is actually making panels to “wear” glasses. Various lens and barriers will be added in the modules. Auto-stereo panels are often aiming at commercial applications such as public information boards. Lenticular lenses have array independently separates images into a variety of angles. Each eye sees a different image, and the images then merge in the brain to create a 3D effect. Compared to barrier-type 3D displays, lenticular lenses provide higher brightness levels and a more uniform image. AUO exhibited a series of 3D display technologies, including glasses-free barrier, lenticular lens types, and pattern retarder 3D panels to be viewed with special glasses, panels ranging from 8 to 65 inches. Of the exhibits, the 65-inch pattern retarder full HD 3D panel is the largest commercialized 3D TV panel available in the market and will go into mass production in the second half of 2010. Audience must wear a pair of polarized 3D glasses. The glasses weigh only 10 grams and come at a reasonable price, averaging US$2~3 per pair. For those who already own glasses, one must merely clip polarized lenses onto the regular frame for a 3D visual feast. This 3D panel is especially targeting at large-sized three-dimensional displays in home theaters.

array of 3D displays from digital frames, computer monitors, televisions to largersized commercial digital signage are being commoditized. Nevertheless, glass-free 3D display is too expensive for average consumers. As a result, naked-eye 3D is confined in advertisement market. Public information displays (PID), Kiosk, and digital signage are targeted applications. Besides its high cost, limited viewing angle and eye fatigue are the main technical

bottlenecks for today’s naked-eye 3D. High definition, multi viewing angles, wide viewing distance and smooth motion picture performance are other critical elements for the comfort of naked-eye viewing. Industry researchers admit that it takes at least 5 years for naked-eye 3D to walk into home market. Digital signage will be the main application for glass-free 3D displays. Digital signage market is expected to

Table 2 Technology Features

Technology

Feature

Shutter glasses

* Active glasses * High frame rate panel * Full resolution * Low light efficiency * Passive glasses * 1/2 resolution * Viewing angle limitation * High light efficiency * Easy to manufacture * Good 3D effect * Low light efficiency * Difficult to manufacture * Excellent 3D effect * High light efficiency

Stereo (glasses)

Polarizer glasses

Barrier

Watching 3D without Glasses Although stereoscopic technology is believed to dominant the consumer market at present, glass-free 3D is considered to be the ultimate product that more close to people’s viewing behavior. On technology point of view, nakedeye 3D is practical in production. The

Auto-stereo (glasses-free)

Lenticular

Courtesy : AUO

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have 41% compound annual growth rate throughout 2009 to 2011. The estimated shipment number will hit 1,720,000 units in 2010. 3D digital signage is expected to reach 3,700 units installment, accounted less than 1% of the overall digital signage market. Cost-down is the primary mission for 3D digital signage at this stage. Average selling price would drop from 3000 USD per unit in 2009, to 1000 USD per unit in 2014.

Next Step: Standardization Now the situation is like this: you have the 3D TV with a pair of proprietary

glasses. You may also need to prepare extra glasses for guests you invited. More than that, without a compatible Blu-ray 3D disc players and the adequate 3D content, your 3D home cinema party can never work out. Diversified standards are obstacles for 3D penetration. This is possible the main reason that 3D is still regarded as personal entertainment for PC gamers. Currently, organizations are enthusiastic of 3D content format standardization. The Society of Motion Picture and Television Engineers (SMPTE) said it will define a single mastering standard for viewing on TVs, PCs and mobile phones

stereo 3-D content that could come from optical disks, broadcast networks or the Internet. “It’s probably somewhere around 2012 that there will be an interoperable standard available in consumer systems to handle all the delivery mechanisms for 3DTV,” said Wendy Aylsworth, vice president of engineering for SMPTE and a chief technologist for Warner Brothers studios. In terms of standardization, content interoperability is more urgent than hardware uniformity. However, safety concerns like fatigue and dizziness are the same important.

Fig.2 3D Digital Signage
Unit 70,000 Pieces

60,000

50,000

40,000

30,000

20,000

10,000

2008

2009

2010

2011

2012

2013

2014

International Electrotechnical Commission (IEC) and International Organization for Standardization (ISO) are two major organizations in finalizing 3D regulations. The standards focus on refining the measurement of optical characteristics, optical image quality, as well as the safety of videos.

Courtesy : Insight Media ( 2009/01 ) IEK ( 2010/02 )

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AMOLED Supply Shortage Surfaces with Display Demands
By Tiffany Yeh

t was not something big enough to catch a glimpse of high-level display until Taiwan-based mobile phone maker HTC Corporation posted its secondquarter profit that beat estimates. While the market is bullish on HTC’s growth, the issue of component shortage became a major focus. The component in short supply here refers to AMOLED (active-matrix organic light-emitting diode) display, consisting of OLED pixels that have been deposited or integrated onto a thin film transistor (TFT) array to form a matrix of pixels that generate light upon electrical activation, which functions as a series of switches to control the current flowing to each of the pixels. Samsung SDI, a subsidiary of Samsung Group, South Korea’s largest conglomerate, was one of the most aggressive companies in the industry to develop and manufacture AMOLED displays, which has turned itself to be the most dominant AMOLED vendor in the world over the past few years. In early 2005, Samsung SDI showcased

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the world’s largest OLED TV featuring the highest resolution of 2.3 million pixels at the time as well as the AM-based technology for low power consumption; In 2007, SDI started from September mass production of the world’s first AMOLED panel; In April 2009, Samsung released its first phone using the AMOLED display in the United States for mobile phone carrier AT&T. As of the end of June in 2010, for technolog y, Samsung SDI holds the position as world's number one patents owner of AMOLED technology. For dominance, Samsung poises the world’s largest AMOLED vendor almost taking up 99% of the whole market as shown below. The other fractions were split by domestic competitor LG Display and Taiwanbased Chimei Innolux Corporation, the new entity to be formed between Chi Mei Optoelectronics (CMO), TPO Displays Corp and Innolux Display in March. For capacity, as of the end of June in 2010, Samsung SDI has reportedly invested US$1.3 billion in the existing AMOLED

lines which have monthly output capacity of 70,000 sheets (1,300 × 1,500 mm). The South Korea giant plans to invest around US$2.2 billion in new 5.5 generation AMOLED production facility that is due to go online in July 2011, with a hope to help mass-scale production of large AMOLED displays, including TV and PC monitors, at a lower cost than is currently possible. Although Samsung SDI claimed with confidence a while ago that the steps they’ve taken to extirpate this AMOLED shortage issue are adequate to fuel production next year, the secured capacity seems to the analyst not enough for the short term, according to DisplaySearch, a market research and consulting firm. DisplaySearch indicated in its latest Quarterly OLED Shipment and Forecast Report that revenues of OLED in 2009 reached US$826 million, up 35% on year, mostly on account of strong AMOLED demand for handset display. Notably, AMOLED achieved an annual revenue of US$537 million while PMOLED (passive matrix OLED) totaled US$291 million,

Table 1 AMOLED Suppliers’ market share (%)

Supplier Samsung Chimei Innolux LG Display Sony

Q1'09
97.2 1.7 1.2 0.0

Q2'09
97.8 1.8 0.4 0.0

Q3'09
98.1 1.8 0.1 0.0

Q4'09
99.1 1.0 0.1 0.0

Courtesy : DisplaySearch Q4’ 09 Quarterly OLED Shipment and Forecast Report

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registering an overturn for the first time. With the mobile phone design trends continually shifting to smart phones, the institute believes AMOLED revenue growth not only to remain strong in 2010, but the problem of shortage could last for years until 2014 onward. The inspiring expectation also catalyzes much smaller players to deploy into the market in great demand. LG Display, the world’s second-largest panel manufacturer, bought Eastman Kodak’s, a manufacturer of printing and imaging products, OLED business in a US$100 million deal by the end of last year, also aiming to establish a 5.5 generation product line of AMOLED that starts run in the first half of 2011. For Taiwanese rivals, since Chimei Innolux officially announced the completion of its merger on March 18, it has approached to be among the world’s top three players with the ability to leverage its core technolog y and production capacity to ser ve needs of different customers worldwide. The company boasts of its cutting-edge manufacturing process of LPTS technology with two existing 3.5 generation product lines and one 5.5 generation product line in preparation for AMOLED. In addition, AU Optronics Corp, the world’s fourth largest LCD maker, made a come back in the market in March after it agreed to purchase Singapore-based AFPD Pte., Ltd., a joint venture between Toshiba and Matsushita Electric Industrial Co. Ltd., to secure capacity for AMOLED. In June, F.C. Luo, the company’s chief technology officer, claimed that it will kick off mass production and shipment of AMOLED

panels for cellphone applications late this year. On the other hand, DisplaySearch said the PMOLED technology needs to be developed for new applications such as automotive and consumer electronics that are currently adopting PMLCD so as to turn back the difficult position. However, since the world’s largest flat panel makers Samsung, LG Electronics, AUO and Chimei Innolux have shifted facilities and materials from PMOLEDs to AMOLEDs, the market for PMOLEDs might be still limited to small-sized (typically up to 3 inch) low-end product. As data shown, AMOLED screens have a great deal of edges over other categories of display screens. Compared to Liquid Crystal Display (LCD) screens, AMOLED ones need no backlight since they luminance themselves, a big incentive for smart phones vendors to adopt in their product because of a fifty percent of power consumption as well as a thinner and lighter body. Besides, AMOLED screens are theoretically cheaper than LCD ones because they need fewer layers and can be made flexible when used on plastic or thin metal foils. For example, Samsung is managing to integrate the touchscreen into the AMOLED screen in a single panel. Further, AMOLED screens are at the higher contrast ratio over brightness due to, again, the lack of a back light and the fact they can produce much “deeper” black pixels and therefore offer clear images and readability in any environment. Also, they can be transparent, allowing them to be used for certain specialist applications,

eBook for example. Some of the other remarkable advantages of AMOLED screens are the incomparable color reproduction and brightness that surpass LCD and Plasma screens. Their wider viewing angles are ascribed to the self emitting light of the diodes. Improved refresh rates of AMOLED screens is a positive element to be mentioned. These screens do not develop motion lag because of the faster response rate provided. Characterized by a handful of attractions, AMOLED screens are lighting up a great demand among branded 3C makers, smart phones in particular. However, the reason that they merely have a small share (about 2-3% of shipments) of the total mobile phone main display market lies in low yield rate, approximately 50 percent, which drives AMOLED screens’ price to mark up by 50 percent than mainstream TFT-LCD (thin film transistor liquid crystal display) product. Nevertheless, with increasingly more and more upscale smart phone models are turning to adopt AMOLED for their advantages of lightweight, higher image quality, and faster response time, plus a wave of high-speed expansion of major players’ AMOLED lines, analysts from several market researches tend to anticipate that the penetration and the yield rate will raise rapidly starting 2010.

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LED Shines for Large-area Display Backlighting
By Tiffany Yeh

LJ Chen. Besides, AUO’s notebook panels will be 100% LED-backlit by 2011, Chen added. Currently, panel makers and display brands are working together to rejuvenate LED backlight using in large-area LCD displays. Display makers are adopting LED backlights in mainstream monitor sizes ranging from 18.5-inch wide to 24-inch wide. Although LED backlight penetration in monitor panels was only 1.4% in Q3 2009, production plans of panel makers Large-area LED backlight take off in indicate that the penetration could reach 2010 22% in Q3 2010. According to PIDA, LED penetration According to DisplaySearch’s latest rate for notebook PC backlight is estimated report, InnoLux was the leading supplier of to reach 53% in 2009, and 88% in 2010, LED backlit monitor displays in Q3 2009, as shown in figure 1. In mini-notebook, with 34.4% of market share in shipment or netbook, sector, LED display has 100% volume. Other display brand makers such adoption rate. With the respect of Taiwan’s as Acer, AOC, BenQ, and Vizio are also entrenching into this Fig.1 LED Backlight Unit Penetration Rate in Large-sized TFT LCDs market. As DisplaySearch reported in 1Q Units thousand / % 2010, the research 200,000 100% LED TV firm forecasted that 180,000 90% LED MNT LED backlight units 160,000 LED NB 80% will surpass CCFL LED TV 140,000 70% backlights in largePenetration Rate LED MNT area TFT LCD panels 120,000 60% Penetration Rate in 2011, and achieve LED NB 100,000 50% Penetration Rate 74% penetration in 80,000 40% 2013. Large-area LED 60,000 30% backlights demand for 40,000 20% all applications will grow from 114 million 20,000 10% units in 2009 to 770 0 0% million units in 2015. 2006 2007 2008 2009 2010(E) 2011(F) In LED TV sector, Courtesy : PIDA Korean brand makers

oday, cold cathode fluorescent lamp (CCFL) and light emitting diode (LED) continue to be the mainstream lighting sources for LCD backlight modules. However, taking the advantages of slim design, low power consumption, mercury-free, and eco-friendly, LED backlight has rapidly emerged in LCD industry. The narrowing price gap between the two technologies further boosted the adoption rate of LED backlight units.

T

success in LED displays for notebook, Taiwan’s LED industry is ambitious to take up larger-sized displays as well. In Q3 2009, HannStar Display first revealed its optimism towards LED backlight. The panel maker expects all its monitor panel shipments will come with LED backlights in 2010. HannStar’s goal is in line with its fellow LCD panel makers, that LED-backlit will soon take presence in large-sized LCD applications such as monitors and TVs. In late February this year, AU Optronics Corp. (AUO), Taiwan’s largest panel maker, also stated to aggressively march into large-sized LED backlight production. The company expects that LED-backlights will be featured in 80% of its LCD monitor panels and 65% of its TV panels in 2012, said by the company’s president and CEO,

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have been taking the lead. The high usage for LEDs in TV panels has transformed the worlds’ LED market pie, making Korean LED overall market share in value hugely jumped from 9% to 15%. Enormous consumption of LED modules has pushed Taiwanese backlight module vendors to escalate sales ratio catered to Korean companies. Vi e w i ng g re at m ar ke t p ote nt i a l, worldwide TV makers are enthusiastic of LED TV production. Taiwan’s largest TV brand, Vizio Inc., targets to ship 3 million units of LED TVs this year. Other famous TV vendors also have production plans targeting 2 to 3 million units. DigiTimes Research, a local research institute, estimates that LED TV shipment could hit 21 million units globally. Upstream LED chip makers and packaging designers are delighted with the industry evolution. In average, notebook LED backlight utilizes 38 to 40 pieces of LEDs. Monitors under 20-inch may take up 70 to 80 pieces of LEDs, and models beyond 24-inch will take 150 LEDs. The larger the panel size is, the more LEDs must be consumed. For 40-inch LED

and to stable management, players in FPD industry is active in vertical integration. The merger between CMO and Innolux is an example for such consolidation. On November 14th 2009, CMO and Innolux announced the merger of two companies through the exchange of common shares. The new corporate, renamed “Chimei Innolux Corp.”, also strengthened its vertical integration with this merger. Taiwan: comprehensive supply chain Chimei has subsidiary companies to for LED backlighting provide panel key components such as LED backlight is undoubtedly the driver IC, polarizer, backlight module, eye-catching centerpiece in this year’s CCFL module, LED packaging, as well as display industry. In addition to notebook various film filters. Meanwhile, Innolux has application, TVs and monitors using LED in-house capability in color filter, backlit backlights are positioned as slim and green and touchscreen. Both parties may look out home electronics, which soon become the for a smooth technical transfer inside the hot sellers. new company. Taiwan is a major production base for As the leading panel maker, AUO also flat panel display (FPD) and LEDs. The persists on consolidating its supply chain. complete vertical market accommodates at AUO holds a certain level of stock of its least 200 suppliers. The long supply chain component suppliers, and endeavors to includes LED chip makers, LED packaging build up mergers and acquisitions among designers, LED module makers, backlight these vendors. During the past six months, unit vendors, panel makers and T V AUO made two important mergers: assemblers, as figure 2 shows. Lextar Electronics merged with Light In order to shorten the supplier chain House Technology (LHTC) to strengthen t h e c o r p o r a t i o n’s Fig.2 Taiwan LED Backlight TV Supply Chain upstream LED packaging capability; Products Manufacturers Forhouse Corporation a n d Ta i w a n Na n o Epistar, OptoTech, Huga, Forepi, Tyntek, Tekcore, Arima LED chip E l e c t r o - O p t i c a l ’s LED package Everlight, Lite-on, Unity, LHTC, Kingbright, Harvatek, Bright LED, AOT,Edison, Wellypower merger enhanced t h e p a n e l g i a n t ’s LED module TSMT, APCB, Flexium competency in LED Radiant, CoreTronics, Forhouse, K-Bridge, Nano-OP, Kenmos, Forward BLU backlight unit. Smaller scale of AUO, Chimei Innolux Panel technical integrations TPV, AmTRAN (Vizio), Wistron, Compal, Foxconn TV happens in respective Courtesy : Companies, PIDA (2010/03) companies as well. TVs, about 575 pieces of LEDs are used. It is 12.8 times of the consumption of LED notebook display. For 55-inch models, about 744 pieces of LEDs, approximate to 16.5 times of chips are used in notebook displays. DigiTimes Research further predicts that LED chips consumed by TV panels would reach 10,470 million pieces in 2010.

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Fig.3 LED Adoption for LCD Backlight
Large Items Small Notebook PC *Thin *Light Weighting *Low Power Consumption *High Color Rendering Side-Edge Blue LED + Yellow Phos High-end *Thin *High Efficiency *Longer Lifetime Mainstream *Replacement CCFL *Low Price [Side Emitting Type] Desktop *Thin *Low Power Consumption *High Color Rendering TV *Thin *Low Power Consumption *High Color Rendering

Merit of LED Backlit

*Thin

Method Structure of WLED

Side-Edge Blue LED + Yellow Phos *Ultra-Thin *High Efficiency

Side-Edge Blue LED + Yellow Phos High-end *Thin *High Efficiency

Side-Edge / Direct Light Blue LED + R.G Phos Direct Light *Thin *High Efficiency *Lower Power Consumption *Hight Contrast Edge Light *Thin *Light Weighting *Few WLED

Characteristics [Side Emitting Type]

Mainstream *Replacement CCFL *Low Price [Side Emitting Type]

Courtesy : PIDA

Take backlight module for instance, Radiant Opto-Electronics and Taiwan Nano Electro-Optical both have in house capability to design and manufacture light guide plate. The critical component in backlight unit can largely cut-down production cost by reducing usage of LED diodes.

WLED, direct type LED TV taking leads in technology

According to PIDA analysis, the merits of LED adoption for large-area LCD displays center on thinness, light weight, low power consumption and high color rendering, as figure 3 shows. LED chips used for backlight include RGB LEDs, Blue LED + yellow phosphors, and Blue LED + R/G phosphors. In order to reach better brightness uniformity, most of them are white LEDs, as shown in figure 4. In backlighting methods, side-edge

emitting type and direct light type are the most common. Type of LED TV backlighting technology adopted is closely connected to the respective panel supply. According to WitsView, a renowned LCD research institution, slim and energysaving edge type TVS are still mainstreams. Top-tier Japanese and Korean brands chose direct type TVs for better image performance. The cost of LED backlight module for TV mainly comes from the

Fig.4 Structure of WLED and characteristic
Structure Spectrum Data Efficiency (lm/W) 30
400 500 600 700 800

Color Rendering (NTSC) 100%

Color Mix Difficult X

Control Circuit Complicated X

Cost High X

Application

R.G.B

45

TV Lighting

Blue LED + Yellow Phos

phos. LED
400 500 600 700 800

90

100

40

70%

Simple

Simple

Low

Portable Device Notebook PC Monitor TV Monitor

Blue LED + R.G Phos
400 500 600 700 800

70

80

80

95%

Simple

Simple

Middle

Courtesy : PIDA

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light source itself. Generally speaking, for TVs with the same size, an LED backlit TV cost 2 to 4 times that of a CCFL model.

High price becomes major bottleneck LED backlight still faces technical challenges and high price tag bottleneck. Nevertheless, the ideology to pursuit green life and government energy regulation worldwide will keep accelerating the industry’s development. Samsung has been lowering its average selling prices of the LED TVs. It seems price become the major indicator of acceptance in consumer market. The primar y mission for LED backlight now, therefore, is to enable cost-down production. Due to lack of strong TV brand, Taiwan LED supply chain has close relationship with China TV makers. Skyworth, TCL and Hisense all had great promotion in LED TV sector during 2010 Chinese New Year. Chinese LED TVs are roughly cheaper than foreign brands by 30 to 40%, which situation could stimulate LED TV

sales in China region. Although most TV makers have high targets towards 2010 LED TV shipment, the objective must be meet if the upstream LED supply chain could have smooth and sufficient supply. More importantly, the entire supply chain must try every means to reduce production cost.

Optimizing LED backlight cost structure A consumer survey from Consumer Electronics Association implies people’s i nte re s t s i n L E D T V s . T h e s u r ve y mentioned 89% of these interviewees care about energy efficiency, 73% of them tend to have thinner-shaped television, and 41% of them desire for elegant design. Since Samsung’s success proved that consumers do like LED TVs, the promising product could satisfy people’s requirements for future TV sets. How to improve backlight design and optimize cost structure become critical issues for robust growth. WitsView states that changing light bar configuration and LED light design could be possible R&D directions. In order

to maintain uniformity of brightness, extensive LEDs are used in the backlight module for TVs. The high usage of LEDs has been the main reason for LED TV’s high cost. Benefiting from the continued improvement in light guide plates and the luminous efficacy of LEDs, the 2010 LED TV backlight module will probably adopt a 4-lightbar, dual-side design. Instead of the original 6-lightbar, 4-side design, new design would save 1/3 of the cost in light source, as shown in figure 5. WitsView analyst Eric Chiou indicated that light source accounts for over 50% of the cost of the LED TV backlight module, hence, this breakthrough design is estimated to bring about 20% cost reduction in backlight modules. Korean makers would initiate such new design. Starting from this year, Taiwanese panel makers will follow the same design concept to squeeze production cost.

Fig.5 LED Backlight Module Lightbar Design
Application 2009 structure 2010 new design

Monitor

TV

Courtesy : Wits View

Inevitable margin erosion for LED components Wi t h m a n u f a c t u r e r s’ e f f o r t s t o commoditize large-sized LED displays, LED business may soon experience another industry blossom. Constant price reduction of LED TV is likely to induce consumer’s buying willingness, and further magnify LED consumption. Industry assumption towards LED TV is to have the same proliferation trend that happened in notebook display sector. Upstream LED chip and packing supply is foreseeable to have full load capacity throughout 2010. In order to achieve a higher penetration rate of LED backlighting, margin erosion of LED makers and related component makers is inevitable.

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Energy Efficient Displays for Mobile Devices
The electronics industry has embraced the concepts and processes of “green” and “sustainability” to enhance their products, driven by corporate environmental programs, government regulation, and customer demand. The electronics industry in general and the mobile device sector in particular have been very active in making improvements to their products and processes.

Report commissioned by Qualcomm MEMS Technologies, Inc. Bob Boggio / Industry Analyst Clint Wheelock / Managing Director

very step in a green and sustainable process has environmental impacts, and the impact of product performance is the most important because it has such a strong influence on the customer experience. However, the number of processes required to make a green and sustainable product and the crossboundary interactions of these processes are extremely complex. Green and sustainable processes for component suppliers such as display manufacturers include the following key elements: A foundation in Design for the Environment (DfE) and ISO 9000 and 14000 registration. A complete lifecycle analysis (LCA), which includes the environmental impacts of raw materials extraction, manufacturing & assembly, product performance, ancillary equipment & packaging, followed by shipping methods and distance to an OEM assembly site. Once a baseline degree of green and sustainability is established, all of the processes must go through periodic cycles of continuous improvement.

E

consumption characteristics of transmissive (LCD) and reflective displays (IMOD) with diagonal dimensions of 2.4 to 2.8 inches using typical daily usage models. Displays with demonstrable energy efficiencies offer the following advantages: Increased energy efficiency during operation extends the time between battery recharges for customers reducing idle time. Fewer recharge cycles are required, which results in a reduction to the energy grid when applied to the four billion subscribers worldwide. In addition, the reduced number of recharging cycles can extend the life of the device beyond the typical two year exchange cycle as well as reduce the number of devices sent to landfill disposal. Displays can be categorized into one of three major types: emissive / transmissive, reflective, and transflective. Emissive/Transmissive

matrix Liquid Crystal Display (LCDs). OLED (Organic Electro-Luminescent or Light Emitting Diode) Displays are emissive displays, emitting red, green and blue visible light from individual LED structures formed at each pixel. An inherent issue with both emissive (OLED) and transmissive (LCD) displays on mobile devices is that the viewing experience in bright daylight is difficult because the generated light intensity is less than the ambient light intensity of the sun. Reflective Electrophoretic displays are bi-stable reflective displays which consist of charged particles encapsulated in a microcapsule suspended in a fluid. A voltage applied across the particles will cause the spheres to

Display Technology Analysis In the following we’ll compare the power

The dominant display technology used in mobile devices today is an active

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Table 1 Estimated Energy Consumed by Chargers Left Plugged-in

Courtesy: Pike Research

move toward their opposite c h a r g e . Ambient light entering the display and hitting the spheres that comprise a pixel will either be absorbed or reflected. An interferometric modulator display (IMOD) is also bi-stable. A flexible thin-film mirror is fabricated on a transparent substrate with an air gap of a few hundred nanometers between the thin film and the substrate. When ambient light enters this cavity and reflects off the mirrors, it constructively interferes. This

process selects a particular color that is reflected back to the viewer, depending on the height of the cavity, which matches the wavelength of red, green, or blue light. Transflective Transflective displays represent a combination of the transmissive and reflective technologies. Transflective displays are a compromise, and the resulting image quality can be suboptimal to either enabling technology. Their strength is in applications where the lighting conditions vary over a wide range.

Display Operating Characteristics While power consumption is a primary c ons t r ai nt , t h e c omp e t i ng d i s pl ay technologies all have pluses and minuses in the marketplace. It is Pike Research’s opinion that OEMs will embrace reflective

technologies because they offer better power value than traditional LCDs. The reflective technologies also provide enhanced viewing capability in bright sunlight. The two recurring complaints from customers when evaluating their mobile device performance are battery life and the viewing experience of the display. Battery life is a function of the type and duration of activity being completed by the user and remains limited by the capacity of the battery that conforms to the device’s form factor constraints. An unknown percentage of users might, however, be willing to sacrifice form factor (ever thinner, lighter, and smaller) to get a device with a second battery or opt for a higher capacity battery if offered by the OEMs. The other frustration is the viewing experience of an LCD or OLED in bright

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sunlight, which Pike Research estimated at 10% of the active time. The ambient b r i g ht n e s s of sunlight is sufficient to overwhelm the LCD backlight and the OLEDs, resulting in “washout”. Thus, the images or text on the screen can barely be seen. Devices with transflective displays were developed to help resolve this issue in LCDs operating in bright sunlight. Meanwhile, manufacturing modifications have helped make OLEDs more readable. Since the light source for LCDs and OLEDs is internal to the device, there are no significant issues viewing these displays in the dark. Reflective displays are the opposite; they are very good in bright sunlight but need the help of a frontlight while operating in darkness, also estimated by Pike Research at 10% of the active time. In our analysis, 80% of the daily operating time is assumed to be in an office environment.

By reducing the power consumption of a display when active, the power budget can provide more battery capacity for enhanced features or extend the time between recharge cycles. In addition, customers benefit from an increase in battery life with the same functionality. A mobile device is dependent on battery life, and battery life is strongly influenced by display power consumption. Power consumed is replaced by a charger that is typically plugged into line power (an electrical outlet) full time. The industr y is beginning to react to t h e i mp a c t of so-called

“vampire” power consumed before and after a device is recharged. New standards for a universal charger and increasing intelligence within a charger, which will significantly reduce if not eliminate the power consumed by an idle charger, will significantly reduce the carbon footprint of the mobile device categor y. The environmental impact of leaving a device charger plugged in to the wall full time is significant. An IMOD equipped device will require about 58 fewer recharge cycles per year, which will allow such a device to recharge to 100% capacity for an additional 1.25 years. This is an important attribute of

The Impact of Energy Efficient Displays The primary beneficiaries of more energy efficient reflective displays are the OEMs.

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energy efficient displays because of its impact while in use and the reduction in devices thrown away in a given year. A lithium battery typically lasts about 400 full recharge cycles, which is what was assumed in this simple comparison. In practice the battery recharge cycles are cumulative and the battery will likely last longer since each recharge cycle is less than a full recharge. The Young Adult, Typical and Business usage models, along with average active time minutes using a 950 mAh battery and data for days between recharges (2.15 for LCD and 3.25 for IMOD), were used to estimate these effects. A 33% efficiency loss converting 120 volts AC into DC was

included to calculate the energy consumed. An estimate of 175 mW was used for the power drain of a charger plugged-in full time, When all chargers consume less than or equal to 30 mW, which is the European Commission’s most efficient energy standard for chargers, there is the potential for an 83% reduction in energy drain from chargers plugged in full time. Table 1 shows the estimated energy consumes by chargers left plugged-in. A power consuming attribute of some LCD devices is the display remains powered up after a recharge cycle is complete. If a typical user begins a recharge cycle at bedtime and the recharge cycle only takes 2-3 hours the energy grid is impacted.

Market Projections Worldwide consumer demand continues to be strong for mobile devices with more features and longer battery life. Sales in this sector are projected to increase at

an 8.5% compound annual growth rate (CAGR) through 2013, when an estimated 1.6 billion units will be produced. The percentage of smartphones is expected to rise more quickly than other mobile devices. Indeed, the market may reach a point where finding a simple, standalone cell phone is difficult, if not impossible. There were approximately 4 billion mobile subscribers worldwide in 2008 with a penetration rate estimated at 63%. Subscriptions in developed countries are approaching 100%, indicating that an increasing percentage of high-end subscribers have multiple accounts. In developing countries, subscriptions have reached a penetration rate of greater than 50% with a CAGR approaching 33% over the last 6 years. Significant additional potential for growth still exists in countries such as India and China due to their large populations. Opportunities also abound in other developing regions, such as Africa, South America, and additional parts of Asia. Moreover, a spike in demand may occur when the current global economic crisis eases in 2011.

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Strong Panel Demands Heighten Competitions
By PIDA

ince early 2010, strong demand for panels has been expected to rebound with a five percent CAGR and revenues of $93.3 billion for the whole year. The highgeneration production lines continue to c om e on l i n e arou n d t he wor l d, from Japanese, South Korean through Taiwanese and Chinese manufacturers. Major players in the space have accelerated their deployment to seize the market as the global economic situation is poised to take off. Among others, the TV, ebook reader and mobile phone applications are the spur for the industry, helping to improve inventory control and visibility across their operations. According to DisplaySearch, a leading industry analyst firm, total TV shipment will eventually reach more than 243 million units in 2010, a 16% increase over the year before, attributed to the fast-growing the TV replacement cycle in emerging countries such China and India. For ebook reader, the worldwide shipment was concluded to triple that of 2009, increasing to over 14 million units in 2010. The enormous leap has been on the way to achieve by the hot sale of Apple Inc.’s killer application iPad starting late April. In the third quarter, Apple sold 4.19 million iPads, taking a dominant market share of more than 70% over the rest competitors. Tou c h s c re e ns p an e l s are a l s o a strong contingent in terms of worldwide shipment. Analysts expected the market to reach 531 million or so, up 41% year on year. The use of touch screens in mediumsized devices, notebook, and largesized, all-in-one PCs, as well as the other applications is increasing rapidly. To catch up the boom, major panel

S

makers promptly expand in an effort to take advantage of the growth spurt in this segment. With Samsung Electronics and LG Display as the leaders, they heavily invested in manufacturing facilities and research and development despite the changeable and uncertain economy environment. According to Samsung, the total amount hit US$23 billion, representing its largest annual investment outlay ever. Fo r Ta i w a n e s e c a mp s i n c l u d i n g AU Optronics and Chimei Innolux C or p orat ion, t he y als o made huge investment plans, particularly in China, to ease high-tech controls on its formerly bitter rivals as well as to grow sustainably in profitability. China, which will likely surpass the U.S. to be the world’s largest TV and PC markets soon, embraces major LCD panel technology providers to forge an alliance so as to strengthen its competitiveness. In mid 2009, AUO formed its first LCD module joint venture with China’s TV maker Sichuan Changhong Electric, followed by the other LCD TV module joint venture with Haier Group earlier this year, and another TV joint venture with TCL Multimedia Technology Holdings. AUO hopes to save logistic costs, raises awareness and gets much more highprofile attention in China through the strategic approaches. Ho w e v e r, t h e u n e x p e c t e d w e a k market condition resulted from China’s slowing economic growth and worries of double-dip recession stirs up troubles for panel makers. Among all, the allegedly participation in a conspiracy to fix prices of panels hurt the most, worsened by an indictment filed by a grand jury in U.S.

District Court in San Francisco against AUO in mid 2010. The lawsuit is not an individual matter and can be traced to 2006 when South Korea-based LG.Philips LCD revealed that it had been subpoenaed by regulators in the U.S., South Korea, and Japan. The other few more big vendors then said they had been contacted by investigators, which turned an investigation into possible anticompetitive behavior in the flat-panel display market widened. Samsung Electronics, the world’s No. 1 flat panel manufacturer, said it had been served with subpoenas by regulators in the U.S., South Korea and Japan, while Japan-headquartered Sharp and AUO were contacted by the Japan Fair Trade Commission and the U.S. Department of Justice. Taiwan’s Chi Mei Optoelectronics (CMO) said a subsidiary in the U.S. was also contacted by the Justice Department. The probe focused on TFT-LCDs, and the companies under investigation were among the largest manufacturers of such displays. To be more specific, all the defendants were based in Asia accounting for 90% of the annual shipment. A while after, the European Commission opened an investigation seeking to “ascertain whether there is evidence of an agreement and related practices concerning price fixing”. Representatives and spokespeople from the defendants asserted that they were surprised to have received the summons. Sharp argued that the company has a policy of fair and ethical management while Samsung said that it is strongly committed to fair competition and ethical practices and forbids anti-competitive behavior.

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In 2008, Taiwan panel manufacturers AOU and CMO, allying with Japan and the United States, filed a dispute against the European Union over LCD flat-screen panel tariffs, arguing that the European Union violated a 1994 information technology agreement that exempts tariffs on certain items, local media said. It had charged a 14 percent tariff. They also contested EU tariffs on multi-functional printers and television set-up boxes. With roughly two years since then, a WTO dispute settlement body ruled in mid July that the EU could not levy tariffs on panels bigger than 19 inches and with high-definition interface terminals. According to an official, Taiwan firms will save US$162-US$609 million per year on tariffs when the deal takes effect by Dec. 25, barring an appeal by the EU, adding that this is a huge help to the island’s flat-

panel screen manufacturers, because Taiwan’s shipments are so numerous. One recnet shot was Chimei Innolux’s (formerly CMO) patent-infringement lawsuit against Japan giant Sony Corp, taking place around the same time in the U.S. District Court,as well as in China. According to a statement filed by Chimei Innolux, the patents that Sony infringes on relate to LCD televisions, digital cameras and digital photo frames. In the statement, Chimei Innolux General Counsel Peterson Tien said the company is committed to protecting its valuable intellectual property, its industry partners, and most importantly its customers. Chimei Innolux hopes to halt the sale of a wide range of Sony products and demand compensation for the alleged infringement of its patents, and it also asks for compensatory damages.

The central Taiwan-based company was established March 18, after Innolux Display Corp. acquired Chi Mei Optoelectronics Corp. and TPO Displays Corp., supplying panels and partially assembled screens for use in TVs, computer monitors and electronics products. Sony earlier this year alleged Innolux and Hong Kong-based TPV Technology Ltd. violated its intellectual property rights and asked a U.S. trade agency to block imports of its products. Some industry insiders noted that Chimei Innolux’s countercharge against Sony might be an attempt to force Sony to cut the licensing fee for some of its patents and even raise its orders for Chimei Innolux, indicating that mutual charge for patent infringement between suppliers and clients mostly ended with settlement and mutual licensing.

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Photonics Festival in Taiwan 2010 Boasting the Largest Scale of Photonics Exposition in Taiwan to Date
By PIDA

PIDA-hosted Photonics Festival in Taiwan (PFT) and concurrent exposition Display Taiwan had successfully brought new vitality to Taiwan photonics industry. The two shows attracted 39,328 domestic and international visitors with a growth rate of 11% compared to the 2009 event. In response to the call for energy saving and carbon reduction, the theme of the show this year was centered around the green technologies featuring energy efficiency, low pollution, low carbon dioxide and renewable energy, and demonstrating the interaction between green photonics and human life. This grand event was presided by Vice President Vincent Siew.

According to Siew, it was his honor to be with the elites from the industry, government, academia and research institutions in PFT 2010. The large scale of the photonics reflects the booming photonics industr y. In the opening ceremony, Siew recalled when he was the Minster of Economic Affairs 20 years ago; Dr. Peter T.C. Shih, current Chairman of Photonics Industry and Technology Development Association (PIDA) visited him to tout the photonics technology and said that photonics industry would become the mainstream industry of Taiwan in the future. The fact that the photonics industry in Taiwan started from nothing

Fig.1 Taiwan Vice President Vincent Siew (third from left) attended the opening ceremony, with Dr. Peter Shih (second from left) and other guests

Courtesy: PIDA

to reach such a tremendous size in a very short time is very impressive, plus that so many manufacturers exhibiting the show revealed the importance of this industry for the country. He also paid tribute to all the people who were involved in the development of the photonics industry for their efforts and contributions to make it a great success in a very short period. . He was pleased to learn that the contents of the show corresponded to the idea of “energy saving and carbon reduction” and the “green energy” industry- one of the Six Major Emerging Industries- promoted by the government. To help the industry seize the huge business opportunities of the global green trend, the government would give the first priority to develop the mainstream industries such as the socalled two pillars photonics (photovoltaic and LED lighting) for development in the direction of low carbon and high values to make Taiwan one of the leaders in new energy technologies. Vice President Siew also encouraged the guests in the opening ceremony to consider the transformation of Taiwan’s technology industries in the future when enjoying the success of the photonics industry. How will Taiwan increase its share in the global photonics market through further upgrading the industry, uplifting technological level, increasing added-values of products and improving competitiveness and so on has been a major issue for the photonics industry in Taiwan. Currently the IT industry and traditional industry

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FIG.2 Taiwan Vice President Vincent Siew, Dr. Peter Shih and AUO vice chairman H.B. Chen saw the 3D demonstration by AUO

Courtesy: PIDA

in Taiwan mainly take the forms of OEM and ODM, lacking self-owned brands; it is imperative for the industry to get rid of this OEM model and to seek upgrade through both technologies and brands for creating higher added values to make breakthroughs. Sean C. Chen, Vice Premier of the Executive Yuan, also came to the show to show his interest in the development of the green energy industry. During the tour guided by Dr. Peter Shih, Vice Premier Chen listened to the briefing on the photonic industry learned about the market and development status in the areas of LED, photovoltaic, flat panel display and so on. He also showed interest in the awardwinning photonics products exhibited in the theme pavilion. Echoing President Ma, Ying-jeou’s call for the citizens to be alert when facing

the global climate change and make contributions to energy saving and carbon reduction, Vice Premier Chen pointed out that for the industry, the government was concerned about how the efforts made in response to the climate change could be developed into a new industry. In other words, the seemingly passive actions of energy saving and carbon reduction could generate very positive results. For example, the development of PV was a great help to the industry. Dr. Shih concluded by quoting the remark by President Ma that energy saving and carbon reduction was neither a slogan nor a fashion but a new way of life. He affirmed the enactment of laws by the government to encourage development of renewable energies such as solar power, biomass and wind power. Embracing the wave of low carbon living, the green power

will start a new era of application.

Buyers Have Positive Responses towards PFT/Display Taiwan 2010 This year international buyers gather up in the two expositions in order to explore future business with Taiwanbased photonics players. The world’s leading companies such as Soltec and Flamagas from Spain, Sony and Hitachi from Japan, Hyundai Telecom from Korea, ADEO Groupe from France and so forth participated in procurement meetings held onsite. Companies from emerging market also joined this event, including Halil Avci from Turkey, NLC, and Micrsol from Saudi Arabia, Silk Ventures Group, Neio-Succeed from China, and BBM Bommidala, Kwality Photonics, Hard Chen from India. Other companies include Electronic Resources

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Fig.3 Dr. Peter Shih making presentation to Vice Premier of the Executive Yuan Sean C. Chen

Courtesy: PIDA

NZ, Display and Design from Germany, Century Italia from Italy, Jimway from the US, and Prolicht from Austria. In total, over 250 procurement meetings had been held for over 30 international buyers and are estimated to bring a strong demand for Taiwan-manufactured products.

Lighting Africa Seeking the Light in Taiwan Invited by the organizer of Photonics

Fe s t iv a l i n Taiw an , L e o Bly t h , t he technical consultant of the Lighting Africa initiative delivered in speech in the 2010 International Conference in LED Lighting. According to Blyth, Lighting Africa is a World Bank Group (WBG) initiative which supports the private sector to develop, accelerate, and sustain the market for modern off-grid lighting technologies tailored to the needs of 500 million African consumers.Lighting Africa works closely with a range of key manufacturers along

the supply chain and beyond and fathers successful market formation. During his trip to Taiwan, Blyth also visited booths of Taiwan’s leading LED manufacturers such as LiteOn, Everlight, and Delta to exchange ideas for offgrid lighting applications. The show host PIDA said it is possible for the LED manufacturers in Taiwan to gains orders such PV-powered LED lamps through this visit.

Fig.4 The three-day-run Photonics Festival in Taiwan and Display Taiwan drew over 30 buyers from overseas to explore business opportunities with Taiwan-based photonics players

Fig.5 Blyth Promoting the Lighting Africa

Initiative

Courtesy: PIDA

Courtesy: PIDA

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Exhibitors Demonstrating Various Technologies in Photonics Festival
By PIDA
The PFT Theme Pavilion: A Retrospective of Taiwan Photonics Industry For decades, the Photonics Festival in Taiwan has been keenly welcomed and supported by the domestic and foreign photonics manufacturers, making it one of the most important photonics exhibitions in the Asia Pacific region. This year, in celebration of the 50th anniversary of the invention of Laser, the organizer PIDA paid tribute to Laser at the theme pavilion, in which posters showing the development trends and a picture showing Theodore Maiman, the invention of Ruby laser, visiting Taiwan were displayed. The theme pavilion let visitors recall Taiwan’s photonics industry in its early stage of and those who contributed to the establishment of the industry. Furthermore, the winning products from this year’s Outstanding Photonics Products Award along with various PIDA-compiled statistics about the photonics industry were also exhibited to reflect the present development here in Taiwan.
Fig.2 Everlight aiming at energy saving products Fig.1 PIDA’s theme pavilion is packed with crowd

Everlight to demonstrate a new generation LED lamps Everlight rolled out a new generation of LED lamps to replace the traditional lamps. The company stressed the capabilities of these LED lamps to directly take the place of incandescent lamps without modifying the external power or inverters. Now users only have to buy LED lamps from Everlight and enjoy the benefit of 80% power reduction to save their electricity bills right away.
Fig.3 LiteOn Technology presented the best of LED pavilion

LiteOn Technology strode ahead with LED products LiteOn Technology turned the exhibition pavilion into an education center with technological, futuristic and green environmental features. The portable mobile lamps, smiling lamps with touch control for image changes and color lamps with automatic color switch feature were available in the pavilion. These innovations changed the stereotype of traditional light bulbs. Now, the light bulbs are not just light bulbs. A large LED assembly model was provided to entertain and educate visitors with their hands-on experience for assembling it. A large LED word map experience area was established to help visitors realize that LED technology was not only the future epoch-making light source but also a green solution for carbon reduction.
Fig.4 Vice President Vincent Siew visited Delta’s booth

Delta Electronics to Exhibit LED Lamp Certified by TÜV Delta Electronics presented its LED lamps, which were the first to be certified by TÜV Rheinland Taiwan Ltd. in Taiwan. As the leading power supply provider, Delta Electronics is dedicated to develop solutions both environmental friendly and energy saving. The company cooperates with Epistar to roll out ultra high efficiency LED (HV LED) lamps for LED lighting applications. Delta’s LED street lamps have been verified by ITRI to have the highest lighting efficiency in Taiwan and been the first to receive certifications from TÜV Rheinland Taiwan, which awarded Delta with its TÜV certificate during the exhibition.
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Future Lighting Solutions and Philips Lumileds seeing the future of LED applications Future Lighting Solutions is a leading provider of LED lighting components and support services for solid-state lighting products and installations, including lighting engineering expertise, concept development, system solutions and online tools that accelerate quality application development. The company has teamed up with Philips Lumileds to provide world-class LUXEON LEDs and the engineering, support and services that make it easier for companies to develop solid-state lighting solutions and get to market more quickly. In addition to enabling customers with LUXEON power LEDs and the optics, electronics and thermal solutions that every SSL solution needs, Future Lighting Solutions has developed unique and powerful tools such as the Usable Light Tool, Lifetime Reliability Tool and QLED thermal software each of which allow customers to more easily select the appropriate LED and design an effective solution.

Fig.5 Future Lighting Solutions to provide its LED ideas

Fig.6 ITRI to show advanced display products ITRI to Show Advanced Display Technologies At the 2010 Taiwan Photonics Festival, Industrial Technology Research Institute (ITRI) presented many of its latest innovative optoelectronic technologies, such as its 3D Image Display Technology, its portable Flexible Panels, and its Light Guiding Plate and Diffuser with Self-Scattering Effect, which allow LED light sources to be evenly dispersed. In the 3D field, ITRI has developed 3D software which converts images from 2D to 3D, and enables wireless transmission of real-time 3D images. This function allows images from a remote 3D monitor to be transmitted wirelessly to the family television and enjoyed in real time in 3-D form. For portable electronic devices, ITRI has developed Rollable AMOLED, using the most advanced plastic backplane peeling technology together with Organic Light-Emitting Diodes (OLED) to offer superb flexibility, high image resolution, and high reaction speed.

AUO to Exhibit Innovative Display Applications at Display Taiwan 2010 AU Optronics Corp. participated in Display Taiwan 2010 to showcase its full lineup of display products. The exhibits include 3D display technologies with panels ranging from 8 to 65 inches, the range of 46 to 65-inch power-saving LED backlit TV panels, LED backlit IT displays from 10.1 to 24 inches employing multi-touch or MVA technologies, and small and medium-sized e-paper display applications, in addition to advanced TV display technologies such as the 58” CinemaScope HDTV and AMVA5. The world’s largest (*) 32” projected capacitive multi-touch LCD display and the world’s first(*) 2.4” transparent AMOLED in-cell touch panel will also be shown. The wide array of innovative applications will for certain be the highlight of the event. AUO’s theme for the show this year is “Innovating Life.” The aim is to offer dazzling viewing experiences through technological innovations to create an amazing and enriched digital life.

Fig.7 Visitor sflooding into AUO’s exhibition booths

Fig.8 CPT showcased its 3D and Touch applications

CPT displaying 3D and touch panels Chunghwa Picture Tubes (CPT) demonstrated it technology in five major fields: including 3D, Touch, Eco-friendly, E-reading, and smart phone sections. In recent years, CPT has been aggressively developing 3D displays, such as the Multi-view multi viewing-angle 3D autostereoscopic technology, and lenticular lens target at 3D applications. Furthermore, CPT also provides projective capacitive touch panels with their sizes between 3.2” to 21.5” and enhances these touch panel with the advantages of high transmissive rate, low color difference, high precision, and real multi-point touch capabilities, thereby giving customers products with the highest quality.

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The 15th IOA Meeting Targets on Green Actions
By Angel Chiou
he 15 Annual Meeting of the International Optoelectronics Association was successfully held in th th Taiwan during June 9 to 11 by Photonics Industry & Technology Development Association (PIDA). Ten international optoelectronic organizations gathered up to discuss the photonic market, production trends, and hot topics, as well as to update the participant organizations’ activities. The two-day meeting began after the joint open ceremony of the “Photonics Festival in Taiwan 2010”and “Display Taiwan” and the tour of the stalls. Representatives from various organizations

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briefed on the development of photonics industry and technology in their respective areas. The first speaker, Dr. Sadiq Hasnain from Canada introduced the photonics industry cluster in the country. He was followed by Dr. Tom Pearsall of the European Photonics Industry Consortium (EPIC) talked about the activities of the organization and the energy saving and carbon reduction programs in EU. According to his estimation, revenue of photonic industry in Europe 2009 reached 52 billion euros, and in 2010 will continue growing to up 60 billion euros. Dr. Daniel L au f rom Hong Kong

provided insights into many photonic organization and industrial base in China. Dr. Kyu-zong Cho of the Korean Association for Photonics Industr y Development (KAPID) expected LED lighting to set off a new trend very soon in Korea. Dr. Dirk Kalinowski, CEO of OpTech, spoke of Germany’s strong photonics industry and analyzed the application of the photonics technologies with future market potentials, such as All-optical-lighting, Visible Light Communication, and Nanophotonics. On the second day, new president of Optoelectronics Industry Development

Fig.1 Key members of international optoelectronic associations meet up in Taiwan for the 15th IOA Meeting hosted by PIDA

Front row left to right—Dr. Kyu-zong Cho (KAPID), Dr. Michael Lebby (OIDA), Dr. Peter T.C. Shih (PIDA), Dr. Daniel Lau (HKOEA), Dr. Christoph Harder (SLN) Back row left to right—Dr. Sadiq Hasnain (NRC-CNRC), Chris Gracie (SOA), Fred Quan (OIDA), Dr. Thomas Pearsall (EPIC), Dr. Dirk Kalinowski (OpTech-Net), Dr. Kenji Murata (OITDA), Yasuhisa Odani (OITDA), Murphy Lin (PIDA)

Courtesy: PIDA

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Association (OIDA)— Fred Quan— talked about global photonic technolog y and market trend, including the integration of photonic technologies, and showed OIDA’s roadmaps of LED, OLED, las er, and opt ical c o m mu n i c at i o n . O I T DA analyzed that the main region of photonic industr y has shifted into Asia-pacific area, and market in China is getting more and more important in the near future. Ya s u h i s a O d a n i f r o m Optoelectronic Industry and Technolog y Development Association (OITDA) gave a detailed analysis on Japan photonics industry. Data from OIDA and OITDA has been important reference for Taiwan developing photonic industry. In addition to route report of activities, Chris Gracie from S cott i s h O pto e l e c t roni c s A s s o c i a t i o n ( S OA ) a l s o introduced EU’s participation in developing green energy. The meeting ended in reports from Dr. Christoph Harder (Swiss Laser Network) and Dr. Peter T.C. Shih (PIDA). As the Chairman of the 15th IOA Conference, Dr. Peter Shih presented the Distinguished Service Award to Dr. Michael Lebby, former president of OIDA for his outstanding service and contribution to the organization during his

Fig.2 The IOA members Canada Europe Hong Kong Korea Germany Japan USA Taiwan Scotland Swiss
Courtesy: PIDA

National Research Council Canada— NRC European Photonics Industry Consortium–EPIC Hong Kong Optoelectronics Association–HKOEA Korea Association for Photonics Industry Development–KAPID OpTech-Net Optoelectronic Industry and Technology Development Association–OITDA Optoelectronics Industry Development Association–OIDA Photonics Industry and Technology Development Association–PIDA Scottish Optoelectronics Association–SOA Swiss Laser Network–SLN

Fig.3 Dr. Shih presented the Distinguished Service Award to Dr. Michael Lebby

Courtesy: PIDA

tenure (see figure 3). The next IOA conference will be organized by SwissNet in Geneva 2011, Switzerland and more photonics organizations from different parts of the world will be invited to participate for furtherance of the influence of

the IOA, an international photonics cooperation network. In response to the “GO GREEN” theme in the show, key members of IOA meeting also attended the International Green Photonics Forum with

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the topic “From Green Photonics to Low Carbon Society” addresses issues on how photonics technologies are used to improve the sustainability of environment worldwide. Speakers of the forum are key persons from OITDA, OIDA, EPIC, SOA, and OpTech-Net to share their experiences in promoting green photonic technologies. As PIDA founder as well as forum host, Dr. Peter Shih pointed that while the world is evolving into a future of energy efficiency and green industry, photonics would carry a significant role in the society. Non pollution, low CO2 emission, energy efficiency will be highly valued. Among various photonic technologies, LED and photovoltaic are the most potential ones to contribute to this global green movement. Echoing to Dr. Shih’s perspective, Mr. Odani from OITDA pointed that lighting, internet communication, and displays respectively take 15%, 5%, and 1.5% power consumption in Japan. He believes by photonic technology would help improve power efficiency. It is estimated that by 2015 light bulb will be phased out in the market and 90% market be replaced by

Courtesy: PIDA

2025. Mr. Quan from OIDA, on the other hand, considers photonic technology as part of human life since it is highly involved with lighting, communication, and medical behaviors. “Though photonic technologies help reduce CO 2 emission, what makes things change is our life style—to turn thing off!” he added. The participant organizations all agree that the photonic industry is quite potential in the following years. Dr. Pearsall from EPIC analyzed that renewable energy only takes 4% in the whole world, and is highly potential in growing in the future. He took power consumption in Europe for instance, pointing that 59% of power used in Europe are clean energy, among which PV takes 19%. Since 50% revenue of European photonics industry is invested in development of green photonics, he believes LED, sensing in wind energy, and

PV would have bight prospects. Dr. Dirk Kalinowski from Optech-Net introduced the current development of green photonics in Germany. Germany as one of the most ambitious countries in environmental protection aims to double its energy production in 2020 comparing with that in 1990. Till then, 30% of Germany’s power would be renewable energy. Germany also attempts to reduce its CO2 emission to 60% amount in 1990. Dr. Shih concluded by quoting the remark by President Ma that energy saving and carbon reduction was neither a slogan nor a fashion but a new way of life. He affirmed the enactment of laws by the government to encourage development of renewable energies such as solar power, biomass and wind power. Riding the wave of low carbon living, the green power will start a new era of application.

Fig.5 Key IOA members shared experiences in CO2 reduction through photonic technology in respective countries.

From left to right— Dr. Peter T.C. Shih (PIDA), Dirk Kalinowski (OpTech-Net), Chris Gracie (SOA), Thomas Pearsall (EPIC), Fred Quan (OIDA), Yasuhisa Odani (OITDA)
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2010 Outstanding Photonics Product Award Winners
Edited by Angel Chiou
n order to encourage innovation/creation and to promote photonics products’ market potentials, Photonics Industry & Technology Development Association (PIDA) calls for a group of experts and scholars to select the most innovative/creative products of the year as the winners of “Outstanding Photonics Products Award.” The award-winning products not only show the high quality, but the great design of Taiwan photonics products as well. These products provide future directions for Taiwan photonics industry, as well as represent the competitive strength of Taiwan photonics industry.

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Arima Lasers Corp. High power 635nm/4W Conduction Cooled Package (CCP) Laser Array
Window diffusion process to avoid COD(Catastrophic Optical Damage) Low temperature ECR film coating process Au/Sn eutectic die bonding process to enhance product reliability Fast Axis Collimator Array Lens attaching technology In-house developed high power automatic testing system Easy for optical integration Automatic production

ELAN Microelectronics Corp. Windows 7 SmartTouchscreenTM with eStylusTM Millennium Communication Co., Ltd. Solar LED
The first case combing high efficiency III-V solar chip and LED chip, and packing in one component. By utilizing its shape to concentrate, the conversion efficiency of solar cell is raised up and the power is transferred from sunlight to supply LED. Small size simple structure high conversion efficiency high illumination and flexible application. Use epoxy potting as package method which is adopted by LED packing with global top lens. Overcome the die-bond difficulty while placing LED on the center of solar cell. Applied in products with properties of energy generation, energy efficiency and practicality, such as outdoor billboard, traffic sign, mobile design, phototransistor coupler for circuit protection, directional lighting source in 3C products and landscape architecture. MS certified Windows 7 compatible multi-touch technology. High transparency: Glass substrate. Ghost free : Special algorithm for eliminating multi-touch ghost coordinates. Palm rejection: Distinguish false signal induced by accidental palm-contact on the screen. Large size : Eliminated signal decay common to large-size touch screen Palm rejection: Distinguish false palmcontact signal. Capacitive pen : ELAN fine-tip eStylusTM provides user with an alternative input method. With ELAN patented Multi-Finger technology.

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Sun Well Solar Corporation Semi-transparent thin-film solar panel
Sun Well Solar’s see-through photovoltaic panels adopt a comprehensive art of semitransparent. The photovoltaic panels allow the specific wavelengths of light passing through, blocking harmful ultraviolet light to pass through but allowing the penetration of red light to help the photosynthesis of plants. While the rooftop of photovoltaic panels can generate electricity and result in high energy conversion efficiency, the plants below the panels can also grow well through the large area of sun light. As to agricultural development, there is a gradual tendency toward indoor, organic, and high quality agricultural industry. To integrate solar energy into sophisticated agricultural applications will be able to create more benefits for the dual use of land value per unit area.

Chimei Innolux Corporation 42” Best Integration of 120Hz+MEMC in LCD TV Display
CMI has developed 42” Full HD (1,920 * 1,080) with high resolution & 120Hz high frame rate panel display technology. This product not only succeeds in upgrading the frame rate from traditional 60Hz to 120Hz, but also declares the coming of NoDynamic Blur LCD display technology. High-bandwidth (120Hz) of the TFT writing technology High efficiency, low distortion of the LCD pixel design High-speed response time, high reliability of the liquid crystal material The new generation of LCD manufacturing technology Advanced LCD over drive technology MEMC (motion estimation / motion compensation) frame interpolation

VisEra Technologies Company Ltd. Wafer-Level Camera Module
Wafer level technology is used to build thousands of lenses on a wafer at the same time. Wafer-level camera module can be mounted directly onto the phone board by using the same reflowable process with multi-mega pixel resolutions. Comparing with conventional CCM technology, wafer-level camera module has succeeded in ultra-small dimensions, reflowable, economy scalibility and lowcost solution. Low cost solution Economy of scale production Reflowable

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ALViS Technologies Inc. Novel Laser Scanning Head-Up Display
ALViS’ Laser Scanning HUD system is capable of projecting sharp streaming video imaging on any transparent medium. Critical constraint such as the viewing angle has been successfully addressed. Most importantly, projecting key information directly on the windshield within his/her field of vision allows the driver to maintain an uninterrupted focus on the road and yet be instantly alerted of happenings in and around the vehicle.

Himax Technologies, Inc. Himax Display HX7309
Himax Display HX7309 is an active matrix liquid crystal display with resolutions of 640X360. Horizontal digital data drivers and vertical scan drivers are integrated with pixel device to meet the performance demands of high-speed and high– resolution display applications. HX7309 received 8-bits x 1 dot of digital display data per positive clock edge and 8-bits x 1 dot of digital display data per negative clock edge from external, and generates corresponding voltage output of 256-level gray scale. Besides, HX7309 added thermal sensor and heater to improve the performance while operating in a cold environment. Hi m a x D i s p l ay L C O S team is equipped with semiconductor process, LCD driving and LCD optical technologies. The supreme and solid technical background enable Himax Display to microminiaturize image pixels and design microdisplays with a size of only 0.22” such as HX7309 while maintain high reflectivity and contrast. Fur t her more, HX7309 is with fast liquid cr ystal response time and embedded frame buffer to offer high color quality and performance while keep low system power consumption. Therefore, Himax HX7309 is ideal for pico-projectors.

Epistar Corporation Ultra high efficiency high-voltage LED for warm white light
This new product uses an u lt r a h i g h - e f f i c i e n c y red LED to replace the red phosphor and introduce a design enabling high-voltage operation. It configured in an LED bulb, achieved a system efficacy of 110 lm/W, dramatically decreasing the difference in efficacy between warm and cool white light, while also performing at a CRI (color rendering index) of 90 Ra. Best performance for a red LED with an efficacy of over 120 lm/W. Pioneering red LED operable under high voltage additionally providing an improved efficacy less sensitive to temperature differentials. A blue LED having better current distribution and an improved textured surface structure round out the technical features contributing to the excellent performance of the final product.

Limitations of conventional HUDs in transparenc y, viewing angle, ease of installation, and energy consumption are resolved. Absolutely laser speckle free. The only HUD system capable of projecting clear moving images such as n av i g at i on d i re c t i on s , night vision, and rear view camera onto the vehicle windshield. Coupled with t h e e l i m i n at i on of t he viewing angle constraint, it meets the requirements o f O E M a n d A M au t o markets.

Kwo Ger Metal Technologies, Inc. LED lighting module 30W/2700 lm
The LED lighting module KG has an easy plug-in & off design. By only 4 steps LED light module can be installed in the light fixture or the heat sink. The emitters are fully covered by plastic injection so it’s excellent in anti-static and dust & water resistance. anti-static up to 40KV or more ( general standard 4KV). Patented easy plug-in & off design passed IP68 test , ling life illumination under water without protection cover. High luminous efficiency over 90% of the lens design and optical design shape can be diverse.

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2010 FPD Green Product Compe on Winners
Edited by Angel Chiou
lat panel display (FPD) is one of the priority industries promoted by Taiwan government. In order to encourage corporations adopting green technology to improve product value, “FPD Green Product Competition” is organized to facilitate the goal of sustainability.

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Chimei Innolux Corp. Product: 18.5-inched LCD Module
Features : 1. Replacement of four-lamp structure to new two-lamp structure brings power consumption down from 26.3W to 13.3W, cutting power consumption by more than 50% while also reducing toxic mercury content by half. 2. The improved circuit design and smaller size PCB cut down about 20% raw material used. 3. 60% less use of iron frame raw material, reducing metallic waste 4. Achieving over 92% utilization due to the highly-economic cutting capabilities of its G5.5 fab. 5. Using eco-friendly “molded paper” made from recycled pulp instead of conventional “paper + EPE” packaging to reduce carbon dioxide emission.

AU Optronics Corp. Product: 32-inched TFT-LCD TV
Features : 1. Certified by SGS as the first LCD TV set worldwide to have gained PAS 2050:2008 Carbon Footprint Verification. 2. 30% less power consumption. 3. Substantially decreasing mercury levels by 82%. 4. The product conforms to EuP regulations as well as Energy Star in the US. 5. The CCFLs are diminished from 16 straight tubes to 4 u-shape tubes.

CPT Ltd. Product: 31.5-inched TFTLCD Module (LED TV)
Features : 1. Mercur y f ree (LED Light S ource) (unit: ppm) 1,000ppm → 0 2. Integration of S-PWB/ G-PWB/ COB : easy disassembly 3. MDL thickness decreasing ftom 30.8mm to 9.3mm. 4. Weight reduction (unit: Kg) 7.5→4.1 (100%→55%) 5. 98% recycling rate for plastic material and steel in this product

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Advanced Research ParkThe New Focus of Central Taiwan Science Park
Find the balance between technology advancing and historical site preservation, CTSP rediscovering the splendor of Jhongsing Village

By PIDA

n just seven year, the Central Taiwan Science Park (CTSP) has emerged to b e t he te chnolog y de velopment center for central Taiwan and played an important role in industry upgrade. For another seven years to come, CTSP already has a bold plan to further enhance the local industry to leap forward. The establishment of Advanced Research Park is CTSP’s answer to sustainability and incentive for investments. Taiwan’s Executive Yuan is moving ahead with a plan to open a new technology research center to serve as the country’s industrial innovation and research base. The plan was approved in last November to promote innovations in Taiwan’s industries through cooperation among industry, academics and research institutes. In doing so, the CTSP has started this year to establish the research and development park in central Taiwan to spur development of the innovation industry. It plans to invest NT$3.6 billion in constructing the park. CTSP will invite domestic research institutes, such as the Institute for Information Industry and the Industrial

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Technology Research Institute to open their innovation and incubation centers in the planned zone in Jhongxing New

Village, Nantou County. Tenants are expected to move in as early as the end of this year. For example, the new center

Fig.1 Advanced research park is going to be the focus of Taiwan high tech industry
CTSP - Houli Science Park CTSP - Cising Science Park

Chang-hua Coastal Industrial Park

Taichung New City Hall

CTSP Erlin Science Park

Advanced Research Park (Jhongsing Village)

CTSP - Huwei Science Park

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Fig.2 Director General Wen-Ke Yang to lead CTSP to a new era

will be commissioned to develop green intelligence mobile technologies through cloud computing. Ac c o r d i n g t o C T S P, t h e s p e c i a l innovation park will help industries with technology upgrades and innovations in central Taiwan. Aside from the innovation park, a market intelligence technology research center will also be opened in Jhongxing Village. By providing a comprehensive infrastructure for the industr y, CTSP expects at least 250 companies to move in or open incubation centers in the innovation park after its completion, with R&D investment totaled 5 billion NT dollars each year. With this amount of investments in the park and the research center, it is expected to generate a production value of NT$30 billion a year. CTSP said that from the beginning, it planned to preserve the urban fabrice of Jhongsing Village, that is, to preserve the public facilities/historic points as many as possible for history/culture study and to promote sustainability. Therefore, CTSP tries to make Jhongsing Village a place with higher quality of living, suitable resident density, and excellent investment environment combining global vision. The plan is to preserve the environment, to achieve the best utilization rate for the resident at the same time, and to interact with the neighboring areas.

Courtesy: CTSP

Research Park is able to provide knowledge-intensive activities and the communication platform between universities, research institutes and local industry. Most of all, Advanced Research Park is going to be the translation platform between fundamental research and industry application to help the companies conduct field test before commercializing their products. Taiwan is renowned for it success in creating science parks, which have contributed tremendous production Fig.3

values to Taiwan’s economy. However, in the future, it is necessary for Taiwan to set up advanced research park to spur the development of technologies and to maintain its lead in the high tech industries. Therefore, the establishment of Advanced Research Park should serve the purpose of enhancing technology development and providing the information exchanging platform for the industry.

Reserved construction site for ITRI

Advanced Research Park to be the bridge between fundamental research and industrial application CTSP is going to make it the first time in Taiwan to establish a R&D based topof-the-line research zone by providing enough incentives to encourage/attract R7D activities in this park. Advanced

Courtesy : CTSP

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Southern Taiwan Science Park – The Pivotal PV Manufacturing Base in Taiwan
By PIDA
Auria Solar, Chi Mei Energy, Kenmos Photovoltaic, Everphoton, Tai-photovoltaic, Nano-Win Tech, Delta, and Green Energy Technology (GET); there are also those including Epistar, Formosa Epitaxy, Genesis Photonics, EPILEDs from LED industry engaged in “energy conservation”. Based on the comprehensive industry supply chain, STSP has moved on to pursue more aggressive goals, such as establishing the largest HCPV industry cluster in Taiwan. For example, Motech rises along with the development of STSP. Being the first manufacturer to provide silicone-base solar cells in Taiwan, now Motech is the largest solar cell manufacturer in Taiwan and one of the top ten manufacturers worldwide in terms of production capacity and output. In addition, Motech is also Taiwan’s leading provider of photovoltaic systems and photovoltaic inverters. Though affected by the global economic downturn, Motech still achieved a total production of 360MW in 2009. Various acquisitions and Table 1 Souther n Taiwan Science Park ’ s par t nerships wit h Contribution to Taiwan ’ s Energy leading companies Photonics Production Value such as GE, TSMC Unit: Million USD and Itogumi Region LED(Epi) Total PV Cell C onstruction C o., Southern Taiwan Science Park 925 1,318 393 Ltd. have placed 1,386 596 Other Regions in Taiwan 1,982 Motech ahe ad of 2,311 3,300 Total in Taiwan 988 the competitions Courtesy : PIDA in the global PV aiwan has seen its PV Industry quickly revive when the global economy again goes steady along with the extension of solar subsidies worldwide. For example, as to PV cells production, PIDA forecasts an optimistic 22%growth from 1.9 billion US dollars in 2009 to 2.3 US billion this year. And, among all the PV clusters in Taiwan, PV industry in Southern Taiwan Science Park (STSP) contributes a significant part, which is 40%, to the total production, shown in Table.1. After years of development, Southern Taiwan Science Park (STSP) has become a key green energy (which includes “energy generation” and “energy conservation”) industr y manufacturing base in the Southern Taiwan region. STSP has had a high-tech supply chain, which integrates academia, industries and R&D resources and encourages industrial upgrade. In the regard of “energy generation”, tenant enterprises include leading companies such as MJC PROBE, Motech, Gloria Solar,

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market. Besides, eyeing the advantages of the PV infrastructure and the comprehensive industry chain of STSP, Motech has announced plans to expand their manufacturing base in STSP with a total investment reaching 11 million US dollars. Motech is going to strengthen its leading role through its expertise and R&D development to deliver its product with the best quality. STSP has gained the reputation of being the leading science park to provide a comprehensive PV industry chain and attracted many more companies to set up their manufacturing sites there. Among all, GET is one of them and has been granted to be in the science park in the first half of 2010. G r e e n E n e r g y Te c h n o l o g y w a s established in 2004 supported by one of the largest groups in Taiwan TATUNG. GET currently produce two types of high quality solar wafers: High Efficiency Wafer and Super Wafer with conversion efficiency 16.2%~16.4% and 17% respectively. GET have a proven track record of rapid capacity expansion and have achieved scalable manufacturing operations. GET began producing ingots and solar wafers with an initial annual production capacity of 25 MW in 2005, and have expanded annual production capacity to the current level of 360 MW. The company plans to further expand our annual production capacity to

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Courtesy : PIDA

600 MW in 2nd quarter of 2010. Targeting the silicon wafer market, GET hopes to act as a stable silicon wafer source for the solar cell manufacturers in STSP. Besides, the company wishes to work with local equipment provider to improve the solar cell manufacturing process and to reduce the ownership cost by having equipment built locally. To promote the PV industry, the STSP Administration has allotted land for the establishment of a green energy special zone to facilitate the development of solar cell, fuel cell, renewable energy switching equipment, solar energy systems, and other green industries. Furthermore, the STSP Administration also drafted a plan that also includes recruiting green energy process equipment supplier in order to shorten the lead time in the supply chain and reduce overall production costs for our potential green energy enterprises. For example, the STSP Administration helps the INER (Institute of Nuclear Energy Research) establish the HCPV (High C oncentration Photovoltaic)

Qualification & Development Center of at Kaohsiung Science Park (KSP) with the construction of HCPV power generation module certification system in compliance with international regulations. The STSP Administration will utilize technology transfer and collaboration plan to exploit industry talent and attract venture capital. This will promote the development of solar energy systems in southern Taiwan, and aid in the creation and sustainability of a comprehensive value chain. According to INER, who has developed the high concentration photovoltaic (HCPV) since 2003, the main reasons of developing HCPV are based on its high efficiency and high concentration characteristics of the system. Therefore, HCPV gets the highest potential to reduce the cost for power generation amongst all PV systems. So far INER has many achievements, the efficiency of solar cell, fabricated by INER cooperating with domestic epitaxy suppliers has reached up to 37.1%, and is expected to be improved to more than 40%

in 2010. The concentration module with 476 times geometric concentrating ratio has also been developed, and the highest module efficiency is 27.2%, while that of the conventional silicon-based module is approximately 13~15%. Additionally, INER has successfully build One MW HCPV demonstration system which includes 21 sets of 5 kW and 120 sets of 7.5 kW HCPV system nearby Kaohsiung Science Park. This is the biggest HCPV demonstration system in Asia. Through the HCPV qualification center at Kaohsiung Science Park, INER will execute technology promoting and provide module qualification service, which effectively help the related supplier of the HCPV field develop the technology, and acquire the certification to compete internationally. The Southern Part of Taiwan is well known for its competitive advantages in Photonics, metal processing, Energy, Electronics, which are all related to the PV industry. Combined with the comprehensive industry supply chain with the R&D power of INER, STSP has now grown from the PV manufacturing base for PV cell/chip/module/system to expand it reach into the HCPV field. The STSP Administration will continue to help establish an internationally compliant HCPV module evaluation system, cultivate industry talents through technology transfer and industry cooperation program, attract more investments in the HCPV field, and work with local university/ research institutes to promote the HCPV development in Taiwan.

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Elan— More Competitive, Better Solutions
By PIDA
All photos courtesy of Elan

he multi-touch is taking the leading role in the Smart Human Interface technology where we are outstanding in this category,” said Dennis Liu, Director of Investment Relations Division of Taiwan-based chip designer Elan Microelectronics Corporation in an exclusive interview with Photonics Industry and Technology Development Association (PIDA). Furthermore, Mr. Liu said the new meticulously developed large-sized smart touch-screen module— SmartTouchscreen™— was conferred with the Outstanding Photonics Product Award in the 3-day “Display Taiwan 2010” tradeshow which begins on the 9th of June. The achievement reaffirms ELAN’s effort in capacitive touch products development is heading toward the right direction, gaining outstanding recognitions, and earning itself more prospects who are interested in expanding a possible relationship in the future.

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Touch— the Promising Market According to DisplaySearch, a market research and consulting firm, in its recently released 2010 Touch Panel Market Analysis, the total touch screen market revenue will grow from US$4.3 billion in 2009 to nearly

US$14 billion by 2016, a compound annual growth rate of 18% due to the fast-growing portable devices such as mobile phones, media players and navigation units. As the multi-touch technologies are aimed to be brought to desktop systems by global branded 3C vendors, “over the next several years, touch screens will undergo strong growth in large-sized applications such as all-in-one PCs, mini-note/slate PCs, education/training, and kiosks for point of information and self-check in,” noted Jennifer Colegrove, Director of Display Technologies at DisplaySearch, adding that the touch screen industry is already a multi-billion dollar industry, and still has great growth momentum. Elan’s financial report bolsters the statement. The relatively smaller Taiwanese IC design house reported its revenue for June 2010 had reached US$ 18.3 million, showing an increase of 1.11% from the previous month. For July and August revenues, the controller IC vendor sees to increase 5% and 10% on month, respectively, on strong demand from several applications for touch panels such as mobile phones, portable navigation devices and handheld games. Clients are allegedly HTC, Fujitsu, notebook and game console makers. With the expected fresh orders from new clients, Elan expects the third quarter of 2010 to be a peak season, and the second half to bring in revenue of two-digit growth compared to last year. “Some branded notebook PCs such as Lenovo, Acer and Samsung to name a few were involved in design-in activities, integrated ELAN Smart Pad to their entry-level notebook models that vastly improved value and functionality.” said Mr. Liu.

Elan’s Competitive Edge Mr. Liu boasted that Elan is an expert in providing Smart Human Interface solutions with products covering from Transparent Touchpad used in many portable consumer devices to Smart-Pad™ and Pointing Stick for computing devices and also includes Optical Sensor for remote controls. “We are striving to offer the best solutions for ever increasing demand from the computer and consumer sectors,” said Mr. Dennis Liu. The touch-screen becomes the basic requirement for a device to reach the endusers with full potential of success. Mr. Liu placed an emphasis on Elan’s impregnable patent barrier. He said the company provides total solutions for touchscreens with skill and ease, ranging

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from small to large size touch pad with variety of choices from low-cost to high performance with strong patent protection, indicating its clients can be used their products immediately without concerns over patent dispute. “We assure to our first-tier clients that they can select any Elan touch-pad item such as eFinger® and Smart-Pad™, integrates on their devices with absolute confidence,” said Mr. Liu. Furthermore, Mr. Liu pointed out that the company began designing better touch-enabled items after Microsoft Windows introduced in later part of 2009, and its own unique Capacitive (ITO) Multi-Finger Smart-Touchscreen™ (left insert) successfully attained Windows Logo Verification as of last January. Mr. Liu is confident that although rival companies announced and released similar touch items, they still can not match Elan’s touch products because even though one company can make touch screen, but without IC chipset, the product is not an all-in-one package, and thus is less competitive compared to Elan’s product in terms of cost.

Patent Battles By taking a look back in Elan’s history to look at some of the most crucial battles with some heavyweights in IT industry that are famous for being hard to deal with, it’s easier to understand how iron-willed and unbending the company is. O n D e c e mb e r 2 0 , 2 0 0 4 , Ag i l e nt Technologies Semiconductor Products Group filed suit against Elan in U.S.

federal district court in San Jose, claiming that Elan’s OM01 and OM02 optical sensor products infringed Agilent’s U.S. Patents 6,433,780 and 5,786,804 (“the ‘804 patent”). The issuer has long claimed that its portfolio of patents, on optical mouse technology covered all optical mice, and has been very aggressive in asserting its patents against competitors. In 2008, Judge James Ware granted Elan’s motion for summary judgment that the ‘804 patent was invalid as anticipated by a patent owned by Xerox. Then on May 1, 2009, a jury in the United States District Court in Northern District of California returned a unanimous verdict, finding the accused Elan optical mouse sensor products do not infringe a U.S. patent asserted against Elan by Avago Technologies (Agilent created Avago after spinning off its optical business in 2005). “We were pleased with the outcome because it is a complete vindication for the company and affirmation of our policy regarding intellectual property rights,” said Mr. Liu. The other case is Elantech Devices’, then a wholly-owned subsidiary of Elan, suit against Synaptics in U.S. federal court in San Francisco inMarch 2006. By that time, Elan claimed that Synaptics touchpads

infringed on Elan’s patent. Synaptics responded by counter suing, claiming Elan infringed on four of its patents. The court decided some of Synaptics’ touchpads infringed on Elan’s patent and stopped Synaptics from selling those products in the U.S. Later in October, both agreed to settle the dispute, dismissed both pending patent lawsuits, and asked the U.S. Court of Appeals to dismiss the court order. Ye t E l a n’s m o s t r e c e n t p a t e n t infringement that claims in April 2009 against Apple Inc over touch-screen devices is the most eye-catching headline. Elan sued Apple that the touchscreen technology used in Apple’s MacBook, iPhone and iPod touch infringe on Elan’s finger-detecting technology. The US International Trade Commission (ITC) in Washington is investigating into the complaint filed. “Our goal is to protect our technology and to stop sales of those products in the US,” said Mr. Liu. He explained that Apple’s iPhone, iPod Touch, MacBook, Magic Mouse and iPad use technology

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infringes Elan’s “352” patent for detecting the simultaneous presence of two or more fingers. “We have taken the step of filing the ITC complaint as a continuation of our efforts to enforce our patent rights against Apple’s ongoing infringement,” said Mr. Liu, “A proceeding in the ITC offers a quick and effective way for Elan to enforce its patent.” According to Mr. Liu, since ELAN is determined to continue to work with new customers especially from IT hardware integrators, Elan has to take initiatives at the beginning to remove scruples from their mind so it will steadily achieve the goal of two-digit growth in the future. For newly targeted customers, Mr. Liu said the company is pitching those from Japan, Korea and the US where many devices are in progress and Elan’s eFinger® & SmartPad™ will be of assistance.

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