INDUSTRY NEWS

Pact backs OLED push

USDC believes a contract awarded recently to a manufacturer of vacuum systems will speed the development of flexible panels incorporating organic light-emitting displays (OLEDs). Kurt J. Lesker of Clairton, PA, has signed a $354,000 contract with the display consortium to develop an advanced linear organic materials deposition process for OLED production. The consortium and the supplier split the cost of the award, which was announced by USDC on February 2 at Display Works 2000 in San Jose. The project is scheduled to take 12 months.

The market for OLEDs will grow from approximately $3 million in 1999 to more than $700 million in 2005, according to the market research firm Stanford Resources. Advances in OLED development depend on the uniform deposition of organic materials on substrates. The cluster tools used for the process are based on batch processing and use of a point deposition source, USDC points out. The industry is seeking alternatives that promise high film uniformity and high throughput over a large area. OLED advantages--including low operating voltages, high luminance, and a long lifetime--make them suitable for use in a range of products such as VCRs, cars, and consumer goods.

Under the terms of the contract, Lesker will develop an in-line compatible linear source capable of depositing organic materials at a uniformity of ±2.5% across a 12 x 12-in. substrate. The linear source has at least two advantages, says USDC. Because it deposits materials simultaneously across the entire width of the substrate, the linear source offers higher throughput than a point source. Since the linear source is compatible with a reel-to-reel process, it could also eventually lower the cost of OLED manufacturing.

Kodak, DuPont join USDC

DuPont and Eastman Kodak have joined USDC as part of the push to develop plastic display technology. The addition of DuPont and Kodak raises the number of member companies to 16. The consortium notes that both companies specialize in roll-to-roll processes, a technology that will be used extensively for manufacturing displays in the future. Plastic displays will be thinner, more energy-efficient and more durable than standard LCDs, according to USDC.

Dalen Keys, technology director for DuPont Technologies, says joining USDC "will broaden our visibility and participation" in the display industry. He notes that DuPont has expertise in technologies that "could lead to revolutions in the display industry." Among the technologies are holography, flexible substrates, polymers, and roll-to-roll manufacturing. DuPont will provide a large volume of composite subcomponents based on flexible plastic substrates to display manufacturers and OEMs within the next three years, USDC says.

Kodak plans to leverage its expertise in imaging science and materials in order to develop OLEDs. The company says it holds more than 50 patents for the organic electroluminescent display technology. Companies that have licensed the Kodak OLED technology include Pioneer, TDK, and Nippon Seiki.

Substrates challenge suppliers

Developing tools to handle larger substrates and reducing the high costs of materials will present huge challenges to both suppliers and manufacturers of next-generation TFT-LCDs, asserts an executive with a leading-edge equipment firm.

Kam Law, a senior vice president at Applied Komatsu Technology, said the changes in substrate size will be among a number of challenges facing suppliers for TFT-LCD manufacturers. The larger displays will be used primarily for desktop computer monitors and televisions. Mass production is set to start in 2000, said Law, the keynote speaker at the Display Works 2000 manufacturing technology conference in early February.

"A small change in the substrate size could mean a substantial change in the equipment set," Law said. He added that glass display panel sizes have grown 18 times faster than the size of silicon wafers used in semiconductor manufacturing. "Each set of equipment lasts approximately two to three years." Law says the TFT-LCD segment of the industry needs to "minimize our fixed costs and maximize our variable costs."

High materials costs continue to plague TFT-LCD manufacturing, Law states. Forty-three percent of the cost of producing a 15-in. glass display comes from materials, says the executive, while only 6% of the production cost of a 64-Mb DRAM is material related. He called for a reduction of materials costs at a rate of 10% annually. Law said keeping costs down will require a fast ramp-up for both yields and capacity. At TFT-LCD panel sizes of 15 in. and smaller, yield has been as high as 90%, he said.

Applied Komatsu Technology is a joint venture between Applied Materials and Komatsu. Applied won a 1999 Climate Protection Award from EPA for its Remote Clean technology. The technology is designed to eliminate almost all emissions of global-warming PFCs from cleaning processes for CVD chambers used in chip and FPD manufacturing.

Buchanan chairs USDC board

Jeffrey Buchanan, an executive with Three-Five Systems, has been elected chairman of USDC's governing board of directors. The CFO and director of Three-Five Systems, Buchanan serves as executive vice president­finance, administration and legal of Three-Five. Based in Tempe, AZ, the company makes LCDs and microdisplays.

Before joining Three-Five Systems, Buchanan was an attorney with O'Connor, Cavanagh, Anderson, Killingsworth & Beshears. He holds a BS in accounting from Arizona State University, a JD from the University of Arizona, and an LLM from the University of Florida.

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