US Display Consortium
84 W. Santa Clara Street, Suite 790
San Jose, CA 95113
408.993.8111

USDC LAUNCHES R&D FUNDING PROGRAM TO ENABLE
ROLL-TO-ROLL MANUFACTURING FOR FLEXIBLE DISPLAYS

First Contract, Focused on Coating and Film Deposition, Awarded to CHA Industries

 

SAN JOSE, Calif., February 7, 2003- The U.S. Display Consortium (USDC), a public/private partnership chartered with developing the industry infrastructure needed for next-generation flat panel displays (FPDs), today announced it has awarded the first in a planned series of research and development contracts aimed at bringing roll-to-roll (Web-based) manufacturing of lightweight, flexible displays and microelectronic backplanes to the market. Fremont, Calif.-based CHA Industries, a maker of high-vacuum deposition systems and associated equipment for precision coating, was selected as the first contract recipient based on the company's prior experience in successfully developing and commercializing tools for web-based manufacturing. Having developed its prototype Web coating deposition tool for experimental evaluation of web handling systems with the help of prior USDC funding, CHA Industries will now receive $3 million under this second contract to design and build a new production quality tool specifically for handling a 24-inch Web and multiple deposition heads.

According to the USDC, the display industry is actively exploring innovative ways to create flexible displays with new display technologies. These include organic light-emitting diodes (OLEDs) and polymer LEDs (PolyLEDs), which utilize LEDs manufactured from organic monomers or polymers, respectively, that are deposited onto a plastic substrate material. The resultant very thin layers, with their relative closeness to both the thermal and mechanical characteristics of the substrate material, make organic LEDs ideal candidates for use in flexible displays.

The success of these newer display technologies, however, will mandate equally revolutionary manufacturing methods. Web-based processing-in which devices can be created on a continuous roll, or web, of flexible material-is emerging as a serious candidate. If successful, Web-based flexible displays will offer the potential for significantly decreasing overall manufacturing costs. The net result would be more affordable, versatile displays that are both extremely robust and light weight-unlike any other display technology currently on the market.

To accelerate these types of breakthroughs and to enhance the probability of success, the USDC plans to support a number of development projects that will create the tool set and materials systems that are essential for a web-based manufacturing capability. However, an early understanding of the attendant hurdles and limitations (e.g., registration and distortion control, surface damage and contamination control) is essential, so that solutions to these issues won't need to be relearned for every process tool. Thus, coating and film deposition-one of the most basic process steps-is being chosen as the trial exploratory R&D project.

According to a recent report from market-research firm DisplaySearch (Austin, Texas), OLED market revenue will jump from $112 million in 2002 to $3.1 billion by 2007. iSuppli/Stanford Resources (San Jose, Calif.) estimates a similar, but slightly slower growth rate, forecasting the OLED market to reach $2.3 billion by 2008. The majority of this growth will come from consumer-driven products, particularly mobile phones and mobile-phone subdisplays, digital cameras and camcorders and personal digital assistants (PDAs).

"Flexible displays are clearly the wave of the future, and this latest contract provides us with an exciting opportunity to positively impact their market path," said Richard Roth, president of CHA Industries. "We look forward to working in conjunction with USDC to determine innovative ways to leverage our Web-based process technology for the manufacture of OLED and PolyLED-based products, as well as other flexible substrate compatible display technologies."

Commenting on the award, Representative Jerry Lewis (R - CA/41) stated, "Flexible display technology is viewed by the Army as a key element in its transformational programs, such as Objective Force Warrior. As the Chairman of the Defense Appropriations Subcommittee, I know the development of this new display technology is very important, and am very pleased to see that it will be done in California by USDC and CHA."

Project Specifics
USDC and CHA will share half of the $6 million cost of the two-year development project. The first qualification tool will be installed at a USDC member company facility for beta site evaluation and testing. Initially planned for sputter deposition of films in fabrication of polysilicon thin-film-transistor (TFT) backplanes, the tool will also be fitted with a linear organic materials deposition source module (being developed by Kurt J. Lesker Co. under a separate USDC project) for deposition of small-molecule OLED materials onto plastic film substrates.

Robert Pinnel, USDC's chief technical officer, noted, "We awarded this contract to CHA based on the company's track record of delivering quality R&D and prototype tools-particularly its experience in developing and commercializing successful Web tools-and its realistic appreciation of both the scope of the project and the hurdles that must be overcome. Further, the company has indicated its willingness to share critical learning related to web handling in order to facilitate development of lithography, etching, cleaning and inspection tools. We believe CHA is the ideal partner to help us launch this Web-based process program."

 

For more information, please contact:
US Display Consortium
Heidi Hoffman
84 W. Santa Clara Street, Ste. 790
San Jose, CA 95113
(408) 993-8111
heidi@usdc.org

 

About the U.S. Display Consortium
The U.S. Display Consortium is an industry-led public/private partnership providing a common platform for flat panel display and flexible microelectronics manufacturers and developers, FPD users, and the supplier base. Headquartered in San Jose, Calif., the consortium’s primary mission is to fund supply-chain projects and share the results with USDC member companies. The USDC also provides a communication channel among industry, government and the financial communities for display issues; sponsors workshops to broaden the impact of technological developments; and educates consumers on the importance of displays in providing access to information technology. More information about the USDC can be found at www.usdc.org

About CHA Industries
Founded in 1954, CHA Industries is a privately held company dedicated to the design, production and distribution of a full line of high-vacuum deposition systems and associated equipment for precision coating. CHA Industries is a vertically integrated company, designing and manufacturing approximately 70 to 85 percent of all items and assemblies sold as components, and currently being used in various systems. CHA Industries products are generically classified as low-vacuum (which includes its family of sputtering systems) and high-vacuum (which includes its electron and ion beam evaporation systems). More information about the company is available at www.chaindustries.com