Rochester Democrat and ChronicleI may just have to rename this blog to the "Kodak Gets It" blog. They are on the right track, although this is a bit of a gamble. OLED displays are orders of magnitude better than current display screens. If they hit paydirt, they own it, with LG (formerly Sanyo, who backed out due to finances).
Smooches,
Wiggy
February 16, 2006
Kodak gets display-screen partner
Work with LG.Philips to include organic LED
Ben Rand
Staff writer
Eastman Kodak Co. is wasting no time in reshaping an important business based on the company's pioneering work in display screens for consumer electronics.
Rochester's No. 2 employer will work with LG.Philips LCD of South Korea to explore mobile displays and other opportunities, including development of organic light-emitting diode, or OLED, products.
OLED technology was discovered by researchers in Rochester in the late 1980s and is widely viewed as the successor to liquid-crystal displays in personal computers and television sets. The reason: OLEDs consume less power and produce brighter, more consistent colors at wider angles and in bright sun.
"Our goal is to work together seamlessly to develop future business opportunities," Budiman Sastra, executive vice president and chief technology officer of LG.Philips LCD, said in a statement.
The process of manufacturing OLED screens, however, has proved more challenging than expected and has triggered a flurry of changes. Just last month, Kodak sold its minority stake in an OLEDmanufacturing venture to partner Sanyo Electric Corp. Sanyo is liquidating it as part of a strategic shift.
Earlier, Philips Electronics of Holland, a top electronics maker, sold its OLED development business to a smaller firm in that country, while Japanese company Tohoku Pioneer dissolved an OLED joint venture with Sharp.
The industry is in a phase when it is determining "who will commit to OLED and who is willing to spread the risk out by partnering," said Kim Allen, director of display technology and strategy for iSuppli Corp., a market research firm in California.
Allen is projecting $1.2 billion in sales of OLED panels this year, growing to $3 billion by 2010. DisplaySearch, a Texas market researcher, is more optimistic, forecasting $5 billion in OLED sales by 2009.
Kodak has long been eyeing the display business as a potential offset to declines in sales of photographic film, its cash cow business for more than a century. In addition to OLED technology, Kodak is developing technology in flexible displays for signs and related retail markets.
The LG.Philips deal is part of Kodak's pledge to expand its participation in the business. Kodak said in January that it would focus on researching and developing new materials for the screens, issuing licenses for the technology and collaborating with manufacturers.
"This deal is consistent with our strategy," spokesman David Lanzillo said. He said Kodak was particularly enthusiastic about examining applications in larger screens.
LG.Philips is one of the world's top providers of LCD screens for use in televisions, notebook computers, desktop monitors and other applications. It is a joint venture between LG.Electronics and Philips Electronics and has 19,000 employees worldwide.
OLED displays remain a "supreme technology" despite major advances in the quality of LCD screens, said George Malliaras, professor of materials science and engineering at Cornell University.
OLED technology likely will lead to other applications: For instance, General Electric is studying its use in household lighting. Malliaras said it is probably only a matter of time before the industry works out technical challenges and finds the right business model.
"There is no show stopper," he said.
BRAND@DemocratandChronicle.com
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