INDUSTRY NEWS

ON DISPLAY

Pact creates LCD giant

The partners in a new joint manufacturing agreement claim the alliance has created the world's largest supplier of AMLCDs. Philips Flat Display Systems of San Jose and LG Electronics of South Korea signed a pact on July 26 giving Philips a 50% stake in LG's LCD business. Philips will invest approximately $1.6 billion in the venture, making it the largest foreign investment in South Korean history, according to Philips. The deal propels both companies into the forefront of an FPD market that was valued at $8 billion in 1998, the San Jose—based firm says. The stake gives Philips access to the high-volume manufacturing capacity needed to meet the strong demand for FPDs, particularly 15-in. displays for use in a variety of applications. For its part, LG can take advantage of Philips's worldwide marketing and distribution network.

The alliance will focus initially on manufacturing and technology with the possibility of developing into a full joint venture integrating all of the AMLCD operations of both firms. Philips and LG will comanage the new company, which will have its headquarters in Seoul and plants in Kumi, South Korea. Two of the Kumi fabs will expand production to make 680 * 880-mm "mother" glass, the largest displays available, according to Philips. A third plant is scheduled to come on-line in early 2001.

Three-Five seeks light

Three-Five Systems of Tempe, AZ, will purchase National Semiconductor's Light Valve business after working with the division since August 1997 on developing miniature FPDs. The purchase includes all of the National unit's physical assets as well as design documents and software. The deal also calls for National to license all technology and intellectual property previously belonging to the Light Valve business. The two businesses have been collaborating on integrating Three-Five's LCD manufacturing capability with National's silicon back-plane technology, foundry relationships, and silicon processing expertise. Russell Flack, director of engineering and operations for Light Valve and a 27-year veteran of National, will become senior director of microdisplay manufacturing for Three-Five. The display manufacturer will pay an undisclosed cash sum to National and also issue a warrant to National to purchase Three-Five common stock.

Display Web site debuts

The California Display Network (CDN) is a new World Wide Web site designed to stimulate the growth and expansion of the global display industry, according to the site's sponsors. An autonomous arm of the U.S. Display Consortium, the site was developed with grant funds from the California Office of Strategic Development. Features include reports, newsletters, industry roadmaps, bulletin-board discussion groups, and educational information. The Web address is http:// www.caldisplaynet.org.

New events expand FPD use

A new conference and exhibition established to speed the integration of FPDs into a wide range of electronic products will make its debut next month in Southern California. The Display Applications Conference, or Dappcon, will take place November 9 at the Disneyland Hotel in Anaheim. Organizers hope Dappcon/Southern California will foster an exchange of ideas among display manufacturers, display integrators, and marketing specialists on uses, specifications, and product requirements. An area will also be set aside for tabletop exhibits.

Application seminars will cover topics such as touch screens, interconnect solutions, and the proper characterization of the optical quantities of displays. The seminars are divided into three separate tracks covering medical and instrumentation uses, kiosk and point-of-sale uses, and gaming and entertainment uses. Each track will feature a manufacturers panel discussion. Two consecutive keynote addresses will open the conference. Chuck McClaughlin of McClaughlin Consulting Group will address display application trends. Rick Walsh of Jaco Electronics will then speak about application design, contract manufacturing, and other distribution services.

Dappcon/San Jose, a similar event, is scheduled to take place February 2—3 in conjunction with Display Works. Information on both events is available at http://www.dappcon.org.

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