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Qualcomm added a superior to its mirasol, but also MEMS display technology for its upcoming US$1B fab–UPDATE: Plans on Hold–UPDATE2: Sharp is involved
Suggested preliminary reading: Qualcomm mirasol display technology delivered [Nov 22, 2011]
Updates: Capital Alliance with Qualcomm, Inc. and Display Technology Development Agreement with its Subsidiary Pixtronix, Inc. [Sharp press release, Dec 4, 2012]
Sharp Corporation (hereafter “Sharp”) today announced that the Company has reached an agreement with Pixtronix Inc. (hereafter Pixtronix), asubsidiary of Qualcomm Incorporated (hereafter “Qualcomm”, NASDAQ: QCOM), concerning the development of Pixtronix’s MEMS*1 displays. In addition, Sharp signed the capital alliance agreement and will issue new shares by a third party allotment (hereafter “This Third Party Allotment”) with Qualcomm Incorporated, a world leader in 3G, 4G and next-generation wireless technologies, as the allottee.
MEMS display to be developed jointly by the two companies is a display using ultrafine process technology and existing display manufacturing infrastructure with features including high color reproducibility and low-power consumption. The development for commercialization of MEMS display will be achieved by integrating Sharp’s core display technology, IGZO*2 and MEMS display technology of Pixtronix.
In addition, Sharp is planning to accept up to 9.9 billion yen*3 from Qualcomm in equity investment to pursue this joint development. This capital will be used for the development of MEMS display and necessary capital investments related thereto targeting for the achievement of the technology for commercialization.
With this agreement, the two companies will consider the possibility of further collaboration of chipsets by Qualcomm Technologies, Inc., a wholly-owned subsidiary of Qualcomm Incorporated and IGZO-based display technology for lower power consumption and higher performance of mobile terminals.
With this agreement, Sharp will accelerate its strategy for growth in small- to medium- sized LCD business with IGZO-based display technology as its core, and expand its revenue and corporate value.
*1 MEMS: Micro Electro Mechanical Systems
*2 IGZO: IGZO (InGaZnO) is an oxide comprising indium (In), gallium (Ga), and zinc (Zn). A thin-film transistor using this material has been developed by Sharp in collaboration with Semiconductor Energy Laboratory Co., Ltd. (a company based in Kanagawa, Japan, and led by President Shunpei Yamazaki)
*3 Equivalent to 120 million U.S. dollars calculated by exchange rate of December 3, 2012
Summary of the joint development and capital alliance
1. Development for the Commercialization of Next Generation Display
- The next generation display will be jointly developed integrating Sharp’s IGZO-based display technology and Pixtronix’s MEMS display technology. The joint development will establish facilities in the LCD panel plant in Sharp Yonago Corporation (location: Yonago city, Tottori prefecture, Japan) for development of the technology for commercialization.
- The development for next generation displays and necessary investment will begin immediately. At the point when the development of the technology for commercialization is confirmed to be feasible, we will move to the next stage by implementation of equipment targeting to achieve mass production technology.
2. This Third Party Allotment
Sharp will issue new shares by third party allotment with Qualcomm as the allottee by each stage of joint development of the technology for commercialization. The second stage is contingent upon achieving certain milestones.<Notice Regarding the Execution of Capital/Business Alliance Agreement with Qualcomm (US Company) for the Joint Development of Next Generation MEMS Display and the Issue of New Shares by Third Party Allotment (PDF:83KB)>
http://sharp-world.com/corporate/ir/topics/pdf/121204.pdf
(Related post: Sharp-er Hon Hai / Foxconn [March 31, 2012])
Q&A: Qualcomm’s Display Ambitions [The Wall Street Journal, 10, Dec, 2012]
The Wall Street Journal spoke with Qualcomm’s Chief Marketing Officer Anand Chandrasekher and John Stefanac, president of Qualcomm’s Southeast Asia and Pacific operations, to get an update on the company’s efforts in expanding into the display business. The following interview has been edited.
WSJ: Tell us the rationale behind investing in Sharp. How can this investment help Qualcomm make further inroads into displays?
Mr. Chandrasekher: Our unit, Pixtronix Inc., has had a joint relationship with Sharp from a development standpoint and we are just intensifying this further. Sharp has had a history of great display technologies and they still have a great portfolio. This agreement is a deepening of that relationship. In the process, we are taking an equity investment of up to $120 million broken up into two tranches of roughly equal sizes. The first tranche will happen by the end of this year and the second tranche will probably close in the second quarter of next year.
WSJ: Qualcomm announced in 2010 that it was investing in Mirasol displays by setting up a manufacturing plant in Taiwan. Are you producing these displays at the factory now?
Mr. Chandrasekher: We still have the fab in Taiwan and we are still investing in Mirasol. But it’s fair to say that we have reduced the rate at which we invest in Mirasol. Some of these technologies, if you don’t manufacture in reasonable scale, you don’t learn and you can’t prove it. So the plant is still being used in that regard. Whether it goes further, we’re not ready to talk about that. We are talking about using Mirasol as more of a licensing enabler, if you will.
WSJ: How would Mirasol be different from the MEMS (micro-electro-mechanical systems) displays using Sharp’s IGZO (indium gallium zinc oxide) technology?
Mr. Chandrasekher: They are both MEMS-based technology. Mirasol has different characteristics and they are complementary. But they would have other applications and how they would get used in products. The Taiwan plant is being used as a pilot facility to help us to prove out the Mirasol technology. Under the partnership, we would assume Sharp will make the displays.
WSJ: Would you consider discontinuing Mirasol production?
Mr. Stefanac: We certainly aren’t stopping our investment in Mirasol. We will continue the intellectual property that we will license to others.
Reflective OutLook: Shades of Gray or Colorful? [Touch and Display-Enhancement Issue of Information Display, Sept 21, 2012]
The summer of 2012 was an eventful one for the reflective, low-power industry. Two major players made announcements that may be difficult to interpret right now, but certainly indicate changes ahead. In July, Qualcomm, maker of the mirasol low-power MEMS (micro-electro-mechanical systems) reflective technology, announced that it would begin licensing that technology. And in August, E Ink Holdings, which makes the E Ink on which the majority of e-Readers are built, announced that it planned to acquire Sipix Technology, Inc., a developer of microcup technology-based electrophoretic displays.
For some time, mirasol has been considered a possible contender to E Ink’s ubiquitous electrophoretic technology. One of the main reasons that Qualcomm’s announcement came as a surprise was that the chipset maker has been vigorously researching, developing, and promoting mirasol for several years, and is currently building a mirasol display factory in Taiwan. A quick survey of technology bloggers shows the general consensus is that Qualcomm may be going in a different direction with mirasol, which began appearing in e-Readers in 2011. Mirasol can show color and video, but somewhat like color EPD to date, the color is not bright and crisp, but muted.
So what’s going on with mirasol? According to an article by The Verge’s Adi Robinson, who notes that Qualcomm CEO Paul Jacobs spoke of licensing next-gen mirasol display technology and directly commercializing certain mirasol products: “This doesn’t necessarily mean the mirasol line will be discontinued, but it’s clearly being scaled back, and it’s possible that this is effectively the end for Qualcomm’s own production.” At press time, Qualcomm representatives said they were not commenting on the announcement or plans for the factory in Taiwan.
…
QUALCOMM Incorporated Management Discusses Q3 2012 Results – Earnings Call Transcript [Seeking Alpha, July 18, 2012]
Paul E. Jacobs – Chairman and Chief Executive Officer:
With respect to QMT, we’re now focusing on licensing our next-generation mirasol display technology and will directly commercialize only certain mirasol products. We believe that this strategy will better align our updated roadmap with the addressable opportunities.
I just wanted to say also we’re obviously investing a lot in QMT. We’re looking at the opportunities to — on that business model to reduce some of the expenses that we have there. And so that could have a pretty significant impact as well [on OpEx].
Updated: Qualcomm: No Launch Date in Sight For New 4.3″ Screen (video), Factory Delayed Until 2013 [The Digital Reader, June 6, 2012]
Do you know that new factory which Qualcomm is building in Taiwan, the one which was going to produce Mirasol screens and was supposed to be up and running by now? Yeah, that one. I was told yesterday by Bruce Lidl [PR manager of QMT] that the factory is not due to start operation until sometime in 2013, and that means we won’t see consumer products using screens made there until late in 2013 at best.
Right now Qualcomm is making the Mirasol screens on a smaller production line, and from what I’ve heard it doesn’t have the capacity to make enough screens for a major partner. The last info I got from my source at Pocketbook, Qualcomm’s still unconfirmed European partner, was that Pocketbook’s Mirasol based device was on hold because they couldn’t get enough screens.
Kyobo Mirasol eReader Now on Clearance – 71% Off [The Digital Reader, July 6, 2012]
Kyobo Book Centre, South Korea’s leading bookseller, has recently put their Mirasol eReader on sale at a drastic discount. I’m still waiting for confirmation from Kyobo or Qualcomm, but it looks to me like this ereader is on the way out. That’s great; neither the software nor the screen techwere worth the original retail, which was more than $300 USD.
The price posted above is 99,000 won, or about $87 USD. That’s a considerable discount off the original 350,000 won, and it leaves little doubt that this ereader is headed for the scrapheap.
End of updates
Qualcomm buys MEMS display startup, reportedly for $175M [EE Times, Jan 25, 2012]
Communications technology company Qualcomm Inc. has bought fabless MEMS display startup Pixtronix Inc. Qualcomm (San Diego, Calif.) confirmed the purchase but did not give any details and declined to discuss the price. However, reportedly, Qualcomm has paid between $175 million and $200 million.
Pixtronix (Andover, Mass.) was founded in 2005 by Nesbitt Hagood, chief technology officer. The company has developed a low-cost display technology based on the use of MEMS shutters that it appears would make a useful complement – or better alternative – to Qualcomm’s own MEMS-based Mirasol display technology.
The Pixtronix display – called PerfectLight – is based on a MEMS-based digital micro shutter that modulates light from an RGB LED backlight. A high switching speed makes it suitable for applications ranging from full-speed video to e-reader operation and Pixtronix claimed that the display offered greater than 170 degree viewing angles, more than 3,000:1 contrast ratio and 24-bit color depth at one quarter of the power consumption of equivalent size and resolution liquid crystal displays.
The display is not in the market place yet but Pixtronix had developed a 5-inch diagonal display prototype with Chimei Innolux Corp. (CMI), a leading TFT-LCD manufacturer. Pixtronix was also developing a display for Hitachi.
Meanwhile, at about the same time Qualcomm was acquiring Pixtronix, Qualcomm subsidiary Qualcomm MEMS Technologies Inc. announced that a 5.7-inch Mirasol MEMS display technology is used in the Kyobe e-reader. Qualcomm acquired the Mirasol technology when it paid approximately $170 million in cash for the 86 percent of Iridigm Display Corp. that it did not already own.
The Mirasol display is reflective, which means it can save power by making use of ambient light and not requiring a backlight. However, it also means that the display is less bright and visually appealing than an emissive display.
Since its formation Pixtronix had raised more than $53 million in funding from such investors as Atlas Ventures, Kleiner Perkins Caufield & Byers, DAG Ventures and GoldHill Capital. It had about 50 employees and continues to operate as a subsidiary of Qualcomm at present.
Qualcomm acquires Pixtronix, Andover company developing tech for low-power displays [The Bioston Globe, Scott Kirsner, Dec 1, 2011]
San Diego-based Qualcomm, a major developer and licensor of mobile technology, quietly scooped up Pixtronix last week. The Andover company, founded in 2005, has been working on multimedia display screens for phones, tablets, and laptops that would use just one-quarter of the power of today’s liquid crystal displays. With today’s mobile devices, the display is typically the component that uses the most power.
Pixtronix and Qualcomm had been pursuing different approaches to low-power displays, according to this 2009 New York Times piece, but both incorporated MEMS (microelectro-mechanical system) technology; in Pixtronix’s case, thousands of tiny shutters control the light emitted by LED bulbs.
Pixtronix had raised just north of $50 million in funding from investors like Atlas Venture of Cambridge and Silicon Valley based Kleiner Perkins. Neither Qualcomm nor Pixtronix would comment on the acquisition price, but sources close to the deal tell me it was in the neighborhood of $175 million to $200 million.
Pixtronix has 45 employees, and Mark Halfman, the company’s senior director of business development, says they’ll remain in Andover. “We’ll continue to focus on developing and licensing our technology,” Halfman says. The company’s technology isn’t yet in the market, Halfman says, but the company has announced joint development projects with companies like Hitachi Displays and Taiwan-based CMI. Halfman says that Pixtronix CEO Tony Zona plans to stick around. (One year is always a safe bet…)
Pixtronix CEO Anthony Zona touts low-energy display tech [Boston Business Journal, Sept 2, 2011]
… How does this technology differ from LCD?
It’s digital. So we’re moving from analog display, which is LCD, is to a digital display. … Because it’s digital, it can adapt to application needs. So in an e-reader type application it can consume extremely low power, or almost no power. That same display on the fly can change to accommodate full-motion, high-speed video.
This could have implications for the batteries of mobile devices?
You can get at least four times the current battery life — you’ll get days of use, just because the display is different. Right now the display on most smart phones consumes more than half the battery life. …
Mobile display firm Pixtronix seeking $20M round [Boston Business Journal, Aug 19, 2011]
… Pixtronix is already working with Hitachi, Samsung and Chimei Innolux, which are licensing the company’s PerfectLight Display technology for planned mobile products. The first products from the customers could include smart phones and tablets, and are expected in early 2013, Zona said.
The fourth partner for Pixtronix will also be an Asian electronics maker, and is expected to announce the partnership in the fourth quarter of this year, Zona said. “We had planned on having three partners at this point in time, and actually are adding a fourth sooner than we expected,” he said. …
Pixtronix closes $19 million equity round [Boston Business Journal, Dec 29, 2009]
… and may have brought in a major cell phone maker as a new strategic investor … The company did not disclose the names of the recent round’s investors. However … disclosed the names of four board members. … Two of those directors … represent returning investors Atlas Venture and Kleiner Perkins Caulfield Beyers … A third, Gerald Fine, is a Boston University professor who holds an advisory position on the board.
Besides Atlas and Kleiner, its investors include Duff Ackerman & Goodrich Ventures, and Gold Hill Capital.
The fourth board member is Bill Byun, a new addition to Pixtronix’ board. The documents do not identify Byun beyond his name — but Bill Byun is also the name of a California-based managing director at Samsung Venture Capital, the venture investing arm of Korean mobile phone maker Samsung Electronics Co. Ltd.
…
New displays for e-readers – Read all about it [The Economist, Technology Quarterly: Q4 2009, Dec 10, 2009]]
… Another micro-electro-mechanical display comes from a start-up called Pixtronix. Instead of reflecting ambient light, its PerfectLight technology uses tiny shutters that open and close quickly to allow through light from a backlight composed of red, blue and green light-emitting diodes. LCD displays also use shutters, in effect, consisting of liquid-crystal elements whose polarisation can be changed to block light or let it pass. The trouble is that liquid-crystal shutters absorb over 90% of the light passing through them, even when they are open. PerfectLight’s technology allows as much as 60% of the light through. And its shutters can switch fast enough (up to 1,000 times per second) for video.
…
Pixtronix micro-shutter MEMS display consumes much less power [Jan 1, 2011]
Compared to conventional thin-film-transistor liquid-crystal (TFT LCD) or active-matrix organic light-emitting diode (AMOLED) displays, a new digital micro-shutter (DMS) display from Pixtronix (Andover, MA) consumes one-quarter of the power while delivering equivalent image quality.
Using standard TFT LCD manufacturing equipment, processes, and materials, a microelectromechanical systems (MEMS) shutter is built on top of an active backplane and a simple aperture plate replaces the color filter.
Essentially, the DMS technology is made of four key elements: a digital micro-shutter (laterally translating) element at the heart of each pixel that uses a patented zipping actuator; the use of field-sequential color with color-change frequencies greater than 1 kHz to avoid flicker or color breakup; an optical architecture with a light-recycling LED backlight that allows an 11.5% aperture-ratio display to transmit 60% of the light to the viewer (10 times the output of liquid-crystal displays); and a digital-backplane circuit. Pixtronix has announced partnerships with both Hitachi Displays (Japan) and Chimei Innolux (Taiwan) and has developed 2.5 in. QVGA display prototypes that can run 60 Hz videos, achieve a 135% NTSC color gamut, have a 170° viewing angle and 24 bit color, and consume less than 50 mW of backlight power.
Pixtronix and Hitachi Displays Announce Successful Joint Development [Pixtronix press release, Oct 4, 2010]
Displays built based upon Pixtronix PerfectLight MEMS display technology to be demonstrated at CEATEC
Pixtronix, Inc., an innovator in the development and licensing of low power multimedia display technologies, today announced the successful joint development with Hitachi Displays, Ltd. of its PerfectLight low power MEMS display technology for mobile multimedia applications. The two companies recently completed the development of prototype displays, which leverage the Pixtronix proprietary technology and were built by Hitachi Displays. These displays will be demonstrated by Hitachi Displays at CEATEC Japan, the cutting edge IT and electronics exhibition, October 5-9, Makuhari Messe, Tokyo, Japan.
“We are pleased to have jointly developed displays with Hitachi Displays that directly address the needs of high growth markets ranging from next generation smart phones to tablets,” said Tony Zona, CEO of Pixtronix. “Our rapid progress in delivering full speed video, ultra-low power displays built utilizing existing LCD manufacturing infrastructure demonstrates the key strengths of our PerfectLight display platform.”
About the Pixtronix PerfectLight Display Technology
The PerfectLight display is an innovative low-power multimedia display for portable devices, achieving 135% NTSC color gamut, 24-bit color depth, 170-degree viewing angles, and 100 microsecond shutter response times; all with a 75% power reduction over LCD displays. In addition, this new class of display offers Application Agility to dynamically optimize image quality and power consumption for all applications, ranging from full speed video to e-reader operation in a single device. The PerfectLight display is based upon Pixtronix’s Digital Micro Shutter MEMS technology, which is built within LCD infrastructure and eliminates liquid crystals, polarizers and color filters to enable a highly efficient, programmable, and durable display.About Hitachi Displays, Ltd.
On October 1, 2002, the Display Group of Hitachi, Ltd. split from its parent company to form Hitachi Displays, Ltd. With a head office in Tokyo, Japan, Hitachi Displays specializes in all stages of the production of display devices, from planning to development, design, manufacturing and sales.About Pixtronix, Inc.
Headquartered in Andover, Massachusetts and led by experts in the fields of displays, optics and MEMS, the Pixtronix mission is to develop, license and market the perfect display for today’s multimedia lifestyle. The company’s PerfectLight displays combine the best image quality at the lowest power consumption for all applications and are designed to scale from mobile devices to desktop displays through HD televisions. Pixtronix’s investors include Atlas Venture, Kleiner Perkins Caulfield & Byers, and DAG Ventures. For more information, visit www.pixtronix.com.
Hitachi MEMS Shutter Display: DigInfo [Diginfonews Technology from Japan, Oct 24, 2010]
Qualcomm Acquires Pixtronix [Display Daily, Dec 7, 2011]
Qualcomm has recently acquired Pixtronix, the Boston area-designer of a MEMS-based flat panel display for low-power mobile applications. This makes the second MEMS-based display company Qualcomm has acquired. In 2004 it bought Iridigm Display Corporation’s IMod technology, now called Mirasol.
This seems to have been a stealth acquisition and neither company has issued a press release on the transaction, so details are not certain yet. I guess it is no surprise Jignesh Gandhi, Director of Product Engineering at Pixtronix, did not discuss the pending acquisition when he talked to the SID on November 10th. Instead, he talked about Pixtronix technology and the company’s three licensees, Hitachi, Samsung and Chimei Innolux (CMI). While these companies have all demonstrated the technology, none are expected to have a product on the market for at least a year.
The news appears to have been revealed in a December 1st article by Boston Globe Columnist Scott Kirsner. The price is reportedly in the $175M – $200M range, although that hasn’t been confirmed. To date, Pixtronix has been financed by venture capital, with investments from Kleiner Perkins Caufield & Byers, Atlas Venture and Samsung Ventures, to the tune of about $50M. Before the acquisition, Pixtronix had been looking at another round of VC funding of about $20M. I guess those plans have been dropped.
Qualcomm is spending about $1B to construct a display manufacturing factory, which is expected to begin production next year. While this production line was, presumably, originally intended for the Mirasol technology, it should be able to manufacture the Pixtronix display as well. Gandhi had said the Pixtronix display could be made on normal direct view LCD fabs, as can the Mirasol display. So presumably if both the Mirasol and Pixtronix technologies fail to take off (not likely, in Insight Media’s opinion) the company can use the new fab to make conventional LCD for mobile applications.
Qualcomm: The Rest of the Story [Display Daily, Dec 8, 2011]
Yesterday in Display Daily my colleague Matt Brennesholtz discussed the acquisition of Pixtronix by Qualcomm. He asked why a chip-maker would want even one (much less two) MEMS display technologies and insightfully speculated, “Perhaps Qualcomm wants to be able to offer its customers vertically integrated solutions for handsets and other mobile devices.”
Here’s the rest of the story, or at least another piece of it. In late November, the Kyobo Book Centre of Korea (the country’s largest bookseller) announced the Kyobo eReader (photo), the first eReader to use Qualcomm’s mirasol color reflective MEMS display. The display appears to be the same 5.7-inch, XGA (1024 x 768) display Qualcomm MEMS Technologies (QMT) has been showing us for the last couple of years. The MSRP is the equivalent of slightly over US$300, which is solidly in tablet, not simple eReader, territory.
The Kyobo device uses a customized version of Android 2.3 and supports WiFi 802.11b/g/n. But here’s where things get interesting (and why I think Matt was so insightful yesterday). The Kyobo’s smarts come from a Qualcomm 1.0-GHz Snapdragon S2 processor. Between the mirasol display and the Snapdragon processor, Qualcomm can indeed offer the key components of a color eReader kit.
Qualcomm is still making its mirasol displays on a pilot line, so it can only support low-volume customers. Kyobo was identified as falling into that category. A high-volume plant is under construction and scheduled to ramp up in 2012.
At SID 2011, I told Qualcomm Marketing Manager Jesse Burke that the very long gestation period between the demonstration of a credible Mirasol display and the first commercial adoption was creating doubts about the technology. This was obviously not the first time Burke had to answer that question, and he had a well-prepared answer. First, he said, Qualcomm had some design wins, but before the customers could go into production, two things happened. The first was the introduction of the original iPad; the second was the continuing Great Recession. Both caused serious reconsideration of new-product introductions. In particular, many products that seemed cutting-edge before the introduction of the iPad, seemed immediately out of date afterwards.
Second, because Qualcomm only had a pilot line facility for the mirasol, the company was limited in the kind of customers it could pitch in the short term. To Burke’s credit, he told me to expect a low-volume product to appear before the end of 2011, and high-volume products to appear in 2012. With the Kyobo eReader, the first half of his prediction has come true.
Along with Matt, I don’t pretend to know how things will play out with Pixtronic and Mirasol under one roof. But I will express an opinion about relative technical merit. The Mirasol technology is devilishly clever, but it has shortcomings (such as an insufficiently saturated red that appears to be an unavoidable feature of the technology). In general, these shortcomings didn’t look all that serious two or three years ago, when the only competition was an electrophoretic technology with slow switching speed without practical color, and Mirasol’s strengths were compelling. But time moves on. To me, Pixtronix now seems to be the more compelling (and probably the more manufacturable) technology. It will be interesting to find out what Qualcomm thinks.
Really Truly New Stuff at SID 2011 [Display Daily, May 19, 2011]
… In the Samsung booth, you could see electro-wetting prototypes. Samsung bought the company that was formerly Liquavista … Next to what I still can’t help calling the Liquavista displays, were two impressive Pentile displays developed through the remarkably productive relationship between Samsung and Nouvoyance. … The other display is hard to explain briefly. Nouvoyance’s Candice Brown Elliott tried, … The result is a FSC display with no color break-up, a 130% color gamut, and sharply reduced power consumption.
Nearby was a 10.1-inch MEMS display based on Pixtronix technology. (10.1-inch is a popular size this year.) Both Samsung and Pixtronix personnel said the roadmap calls for a commercial eReader/tablet display in 2013. Hitachi is also working with the technology. Mark Halfman of Pixtronix said Hitachi is working on a cell-phone version, hopefully for late 2012 introduction.
Samsung was also showing a prototype 70-inch ultra-definition (3840×2160) 2D/3D panel oxide TFT backplane technology. …
Pixtronix Announces a Partner [Display Daily, Nov 10, 2010]
Every year at about this time, Mark Halfman emails me to arrange a meeting at Flat Panel Display International (FPDI) in Japan and, incidentally, make sure that Pixtronix hasn’t fallen off my radar screen.
The problem is that it takes so long to develop even the most interesting new display technologies that a professional display watcher can get jaded before a technology he is tracking reaches commercialization. A diligent marketing guy like Halfman makes sure that analysts don’t forget and move on to something else.
Last year, Pixtronix showed convincing technology demonstrators at FPDI. Halfman told me then that the company had “engaged” — a wonderfully ambiguous word — with several panel makers, couldn’t reveal their identities, but hoped to have an announcement before the next FPDI; that is, the one taking place this week.
Halfman was as good as his word. On Monday, his company issued a press release announcing that Chimei Innolux (CMI) and Pixtronix had recently completed the development of prototype displays that utilize Pixtronix’ proprietary technology and were built by CMI. The displays will be demonstrated at FPDI.
“With CMI, we have achieved rapid progress in delivering prototypes that demonstrate both full-speed full-color video and ultra-low power consumption. We look forward to continued joint development with CMI, and the availability of larger displays next year,” said Pixtronix CEO Tony Zona.
Unlike some other novel display technologies, the Pixtronix display, which the company calls PerfectLight, genuinely has something to offer, especially for portable devices. An easy way to think of PerfectLight is as a field-sequential-color (FSC) LCD in which the LCD sandwich is replaced with an in-plane MEMS shutter. Like an LCD, PerfectLight makes use of a “Venetian blind” architecture to control the amount of light from the backlight that reaches the viewer. Unlike an LCD, it has no polarizers and (because of the FSC) no matrix color filter. As a result, says Halfman, 60% of the light from the backlight reaches the user, compared with 6% to 8% for LCDs. This contributes to a 75% power reduction compared to LCDs.
Also, the MEMS shutter is fast: 100 microseconds, compared to milliseconds for an LCD.
Pixtronix claims a 135% NTSC color gamut, 24-bit color depth, and 170-degree viewing angle.
In addition, many display parameters can be adjusted to balance display quality and power consumption for different applications. For instance, full-speed color is appropriate for video, while slower-speed black-and-white is fine for e-reading, while using considerably less power.
Now that Pixtronix has a manufacturing partner with deep pockets, it will be interesting to see how long it takes to develop panels that are available to system makers in quantity — and that system makers will want to buy. That, as always, is the test.
Pixtronix and Chimei Innolux to Demonstrate Latest MEMS Displays at FPD International 2011 [Pixtronix press release, Oct 25, 2011]
Pixtronix, Inc., an innovator in the development and licensing of low power multimedia display technologies, and Chimei Innolux Corp. (CMI), a leading worldwide TFT-LCD manufacturer, today announced the successful joint development of 5-inch diagonal MEMS display prototypes. These displays, which utilize the Pixtronix proprietary MEMS technology and were built by CMI, will be demonstrated at FPD International 2011, the comprehensive exhibition and convention on Flat Panel Displays, October 26-28 in Yokohama, Japan.
The two companies previously announced jointly developed 2.5-inch diagonal prototypes at FPD International 2010. Since then, Pixtronix and CMI have worked together to build a MEMS display twice that size and four times the resolution. The new 5-inch diagonal displays offer the lowest power consumption at the best image quality for all applications, achieving over 135% NTSC color gamut, greater than 170 degree view angles, more than 3,000:1 contrast ratio and 24-bit color depth, all at a 75% average power reduction versus LCD displays. These new MEMS displays will be demonstrated by both Pixtronix and CMI (Pixtronix booth 3502 and CMI booth 3602).
“We are extremely pleased in the progress we have achieved with CMI, as the 5-inch diagonal prototypes represent a leap forward in bringing Pixtronix technology to the smart phone and tablet markets,” said Tony Zona, CEO of Pixtronix. “We look forward to continued development with CMI as we improve the performance and scale of these displays on the way to commercialization.”
“MEMS display technology is a new technology bringing additional consumer benefits to the multimedia markets and in the collaboration between CMI and Pixtronix a large step is set to industrialize this technology,” said Andre Krebbers Vice-President Mobile Device BU of CMI.
About the Pixtronix PerfectLight Display Technology
The PerfectLight display is an innovative low-power multimedia display for portable devices, achieving over 135% NTSC color gamut, 24-bit color depth, and 100 microsecond shutter response times; all with a 75% power reduction versus LCD displays. In addition, this new class of display offers Application Agility to dynamically optimize image quality and power consumption for all applications, ranging from full speed video to e-reader operation in a single device. The PerfectLight display is based upon Pixtronix’s Digital Micro Shutter MEMS technology, which is built within standard LCD infrastructure and eliminates liquid crystals, polarizers and color filters to enable a highly efficient, programmable display with proven MEMS reliability.About Chimei Innolux Corp.
CMI is one of the leading worldwide manufacturers of TFT-LCD display products, including TFT-LCD panels, and total solutions for LCD TV and monitor systems. Its one-stop shopping business model vertically integrates TFT-LCD panel manufacturing expertise with systems assembly capabilities. More information about CMI is available at www.chimei-innolux.com.About Pixtronix, Inc.
Headquartered in Andover, Massachusetts and led by experts in the fields of displays, optics and MEMS, the Pixtronix mission is to develop, license and market the perfect display for today’s multimedia lifestyle. The company’s PerfectLight displays combine the best image quality at the lowest power consumption for all applications and are designed to scale from mobile devices to desktop displays through HD televisions. Pixtronix’s investors include Atlas Venture, Kleiner Perkins Caulfield & Byers, and Samsung Venture Investment Corporation. For more information, visit www.pixtronix.com.
PerfectLight and mirasol Show Displays in New Light [Jan 4, 2009]
There are two new energy efficient display technologies on the tech horizon – Pixtronix’s PerfectLight and Qualcomm’s mirasol that shine a new light on display technology.
Pixtronix PerfectLight has an energy efficient prototype that uses thousands of very little LED lights controlled by microelectro-mechanical system (MEMS). PerfectLight uses one-fourth the energy of a an Liquid Crystal Display. PerfectLight prototypes consumed less than 50 milliwatts for the backlighting of a smartphone display while a LCD uses about 200 milliwatts.
The image is created with thousands of digitally controlled, MEMS, shutters that open and close over each pixel opening, allowing light from the red, green and blue LEDs to pass through.
Qualcomm’s technology uses natural light and MEMs in mirasol.The light for the pixels is provided by ambient light. To create an image, reflective optical structures in the MEMS (which they call IMOD), selectively reflect red, green or blue light to create an image.
The Interferometric Modulator (IMOD) element is a simple MEMS(micro-electro-mechanical system) device that is composed of two conductive plates. One is a thin film stack on a glass substrate, the other is a reflective membrane suspended over the substrate. There is a gap between the two that is filled with air.
The IMOD element has two stable states. When no voltage is applied, the plates are separated, and light hitting the substrate is reflected as shown above. When a small voltage is applied, the plates are pulled together by electrostatic attraction and the light is absorbed, turning the element black. This is the fundamental building block from which Qualcomm mirasol displays are made.
LCD 2.0 – Pixtronix’s PerfectLight DMS Display Technology [June 27, 2009]
Pixtronix has finished development of its new MEMS based PerfectLight DMS (Digital Micro Shutter) display technology.The display, demonstrated at this months SID Display Week 2009, delivers exactly what both consumers and manufacturers are looking for; significant energy savings (75 percent) without compromising video quality.
Pixtronix was established in 2005 and is led by experts in the fields of displays, optics and MEMS (Micro-electromechanical systems). Having completed development of a PerfectLight DMS display prototype, the company is now searching for manufacturing partners. While initially targeting smaller display sizes for portable multimedia devices, Pixtronix can scale the display sizes to suit large screen products such as HDTVs.
Pixtronix’s PerfectLight DMS (Digital Micro Shutter) display technology has been designed to combine high video quality with low power consumption for display sizes from mobile devices through to HD televisions. Performance figures include 105% (of NTSC, CIE 1931) color gamut, 24-bit color depth, 1,000:1 contrast ratio and 170 degree viewing angle with a power consumption only one quarter (25 percent) that for TFT-LCD displays.
Cleverly Pixtronix’s engineers have developed their technology based on a similar architecture to that of an LCD panel (hence LCD 2.0!) except for using micro (MEMS) shutters instead of liquid crystals. The DMS display system is based on sequentially flooding the display with red, green, and blue light from LEDs while using the MEMS shutters to modulate the light and produce a full-color image. MEMS have already established their robustness and reliability in display technology through technologies such as Texas Instrument’s DLP micro mirror chips used in projectors.
Key Elements of DMS Display Technology
- Digital MEMS micro shutter element at the heart of each pixel. It is a laterally translating (moving) element which is supported on a patented dual compliant zipping actuator. Use of micro shutters frees DMS displays from using the polarizers, filters and liquid crystals of current LCD display technologies. The polarizers can reduce light intensity by 50 percent and color filters reduce it even further.
- Field Sequential Color (FSC) use is enabled by the MEMS shutters through the rapid color change frequencies of about 1kHZ (1,000 operations per second) achieved. Pixtronix have developed some innovative algorithms for achieving deep, rich colors without image artefacts.
- Proprietary optical architecture including a light recycling backlight. Through a combination of waveguide and mirrored surfaces the light in the backlight is contained to deliver 60 percent of the light from the backlight which about 10X more output than a conventional LCD display (6 to 8 percent). This is the primary source of power consumption reduction of the DMS display technology.
- Use of energy-efficient LED lightsources
- A digital backplane circuit which decouples the functions of actuation and information exchange. This makes possible time division gray scale with color change frequencies in excess of 1 kHz while minimizing drive power.
From an engineering background, what impresses about Pixtronic’s new display technology is the cost savings promised by its having been designed with minimization of manufacturing costs in mind. Manufacturing can use existing TFT-LCD factory equipment and processes and higher yields can be achieved through the wide manufacturing tolerances applicable.
Resources
Take a look at Pixtronix’s video introduction to the PerfectLight Display’s impressive image quality and ultra-low power consumption.
If you would like to gain an idea of what MEMS is about have a look at this introductory video from the MEMS Industry Group. Is has some interesting shots of another MEMS display technology, DLP, in action.
MEMS Industry Group: An Introduction to MEMS [MEMSindustryGroup, Feb 8, 2008]
Using the MEMS accelerometer and the digital micromirror as an example, this DVD explores MEMS technology in a concise, easy to understand, 8.5-minute package. Examples of MEMS are given from all industries, including industrial, automotive, life sciences, and consumer electronics.
Using LCD Fabs for Non-LCD Displays? [Display Daily, May 23, 2007]
SID is where display ideas are demonstrated and evaluated. There are lots of these ideas as well as evolutionary and even revolutionary ideas floated at SID each year. It is where you will see the next big thing in the display industry or some company’s folly in pursuing a pipe dream. The key is to understand who is pitching which. Today, I will look at two of them I heard about in private meetings.
The two companies are Pixtronix and UniPixel. Both are early stage display companies with plenty of capital behind them to pursue a big dream. They want to use their technology to make LCDs obsolete, but use some of the LCD foundries to make these new displays.
Bold dreams yes, and after hearing the pitches, both actually show some merit. Can they pull it off? Time will tell.
It used to be that 20 years was required to bring a new display technology to a mainstream commercialization state. This time appears to be shrinking – and if you believe these companies, it may now be possible in 4-5 years. The truth probably lies somewhere in between, but I am leaning toward the shorter rather than longer side.
So what are these new technologies, you ask? They are similar, but slightly different. Both eliminate the color filters, polarizers, liquid crystal, light management films and even the CCFL in a conventional LCD. What they have in common is an LED-driven backlight with light recycling components, a MEMS or MEMS-like modulator to extract the light at each pixel and an active matrix backplane.
Pixtronix has developed what it calls a Digital Micro Shutter (DMS). The idea is to extract light from the backlight by opening up a pixel gate. Think of this as a pair of pocket doors that open up to allow light to escape. It is an all-digital approach that uses pulse width modulation at each pixel to control grayscale.
…
These ideas are clever and elegant. When compared to the structure of an LCD, they will indeed eliminate a lot of components. And, both companies are targeting using LCD fabrication equipment to make these displays. With some minor adjustments, existing LCD fabs can transition to these new displays fairly easily. And they are scalable approaches for any sized display.
This all sounds marvelous – and it is quite exciting. But both companies have a lot of development work ahead of them to prove they can deliver the goods. There is a lot more to their stories that I can’t reveal, but suffice it to say that these are companies we will be tracking to see how they meet their milestones. SID 08 will again prove to be the place where dreams are made or companies are brought down to reality.
Qualcomm mirasol display technology delivered
Follow-up: Qualcomm added a superior to its mirasol, but also MEMS display technology for its upcoming US$1B fab [Jan 26, 2012]
Updates as of July’12: QUALCOMM Incorporated Management Discusses Q3 2012 Results – Earnings Call Transcript [Seeking Alpha, July 18, 2012]
Paul E. Jacobs – Chairman and Chief Executive Officer:
With respect to QMT, we’re now focusing on licensing our next-generation mirasol display technology and will directly commercialize only certain mirasol products. We believe that this strategy will better align our updated roadmap with the addressable opportunities.
I just wanted to say also we’re obviously investing a lot in QMT. We’re looking at the opportunities to — on that business model to reduce some of the expenses that we have there. And so that could have a pretty significant impact as well [on OpEx].
Updated: Qualcomm: No Launch Date in Sight For New 4.3″ Screen (video), Factory Delayed Until 2013 [The Digital Reader, June 6, 2012]
Do you know that new factory which Qualcomm is building in Taiwan, the one which was going to produce Mirasol screens and was supposed to be up and running by now? Yeah, that one. I was told yesterday by Bruce Lidl [PR manager of QMT] that the factory is not due to start operation until sometime in 2013, and that means we won’t see consumer products using screens made there until late in 2013 at best.
Right now Qualcomm is making the Mirasol screens on a smaller production line, and from what I’ve heard it doesn’t have the capacity to make enough screens for a major partner. The last info I got from my source at Pocketbook, Qualcomm’s still unconfirmed European partner, was that Pocketbook’s Mirasol based device was on hold because they couldn’t get enough screens.
Kyobo Mirasol eReader Now on Clearance – 71% Off [The Digital Reader, July 6, 2012]
Kyobo Book Centre, South Korea’s leading bookseller, has recently put their Mirasol eReader on sale at a drastic discount. I’m still waiting for confirmation from Kyobo or Qualcomm, but it looks to me like this ereader is on the way out. That’s great; neither the software nor the screen techwere worth the original retail, which was more than $300 USD.
The price posted above is 99,000 won, or about $87 USD. That’s a considerable discount off the original 350,000 won, and it leaves little doubt that this ereader is headed for the scrapheap.
End of updates as of July’12
Updates:
– Hanvon Reveals New E-reader Design for China Market Featuring Qualcomm’s mirasol Display Technology [Qualcomm press release, Jan 10, 2012]
World’s Thinnest and Lightest Color E-reader Unveiled at CES Opening Keynote
Qualcomm MEMS Technologies Inc., a wholly owned subsidiary of Qualcomm Incorporated (NASDAQ: QCOM), and Hanwang Technology Co., Ltd. (Hanvon), a leading provider of e-reader devices in China, today announced at the International Consumer Electronics Show the Hanvon C18, the thinnest and lightest e-reader to incorporate mirasol® display technology to date. The Hanvon-branded device, revealed by Qualcomm Chairman and CEO Dr. Paul Jacobs during his opening day CES keynote, delivers a premium reading experience, a touch display, vibrant color even in bright sunlight and weeks of reading under typical usage. *
Hanvon C18 Color E-reader featuring Qualcomm’s mirasol display. World’s thinnest and lightest color e-reader to be available in China market in early 2012
“Hanvon has chosen mirasol displays as the enabling technology that will best place the full color potential of their vast content library into the hands of their customers,” said Clarence Chui, senior vice president and general manager of Qualcomm MEMS Technologies, Inc. “This Hanvon e-reader validates customers’ evolving expectation of color as part of their e-reading experience and mirasol displays deliver an unparalleled experience.”
The Hanvon C18 e-reader includes access to tens of thousands of e-books, more than 100 Chinese newspapers and more than 300 magazines, 90 percent of which offer full-color digital editions. Hanvon’s continuing collaboration with more than 300 publishers ensures a deep and diverse stream of digital content for consumers. Additionally, the device features Hanvon’s patented handwriting recognition technology – Hanvon Input – to further enhance the user experience.
“Thinner and lighter than any color e-reader, the Hanvon C18 e-reader is a revolutionary product that Hanvon and Qualcomm are bringing to consumers,” said Mr. Liu Yingjian, president of Hanwang Technology Co., Ltd. “With the exceptional mirasol display technology, it will break new ground in the e-reader industry.”
The Hanvon C18 e-reader features a 5.7” XGA format (1024 x 768 pixels) mirasol display (screen resolution of 223 ppi) and Qualcomm’s 1.0 GHz Snapdragon™ S2 class processor. Hanvon’s custom application interface sits atop an Android 2.3 base.
* Battery life varies depending on usage and ambient light. Battery life based upon 30 minutes of daily reading time with Wi-Fi off and integrated reading light set to 22 percent utilization
– Kyobo 5.7″ eReader with Mirasol Display Walk Through by Qualcomm [Dec 14, 2011]
– Unsolved Mysteries of the Kyobo eReader (Not Really) [mirasol Displays blog, Dr. Clarence Chui, Senior Vice President of Qualcomm MEMS Technologies, Inc., Dec 20, 2011]
A few weeks ago, we proudly announced the world’s first color e-reader to feature mirasol® display technology – the KYOBO eReader. We believe this announcement is the first step in changing consumer’s expectations about what an e-reader is; delivering color and interactive content, while maintaining the outdoor visibility and weeks of battery life to which they’ve become accustomed.
Since the announcement, there has been some dialogue online and I’ve had a few questions about the device, the display and its capabilities. Let me take a moment to answer some of these questions.
Battery Life:
The Kyobo eReader delivers up to three weeks of battery life, preserving an important attribute that identifies the e-reader category. Kyobo built this device to function as an e-reader and accordingly, applied the industry standard e-reader usage model (of course, those other e-readers feature black and white displays) of 30 min of use each day, WiFi Off, standby power the rest of the time – and in our case, 25% front light brightness – we’ll get to that next. These are Kyobo’s reported numbers.
Reading Light:
Our mirasol® displays work by reflecting ambient light (see how it works), and for darker environments, an integrated reading light is used (we’ve blogged on this before), and in the case of the Kyobo eReader, is controlled by an ambient light sensor. Above, we discuss how there is an assumed 25% brightness in all usage. Try not to think about this as an LCD, where “brightness” equates to the amount of light coming out of the display. Instead, this is the additional light the reading light adds to supplement the existing reflected light. My point is that the display offers visibility in both bright and dark conditions while preserving the battery life consumers expect of an e-reader.
Commercialization, Product Availability and the Korean Market:
First, as to when the product is available, it’s available now and has been on sale in Kyobo’s flagship store in Seoul since it was announced. We have made good on our promise to commercialize mirasol displays in 2011.
I want to also take a moment to talk about why Kyobo is our first customer out the door. Kyobo’s product development focused on finding a tool to enable digital education and meet the Korean consumer’s expectations for an e-reader, something black and white e-readers have not done in Kyobo’s past experience. This focus and execution on mirasol display’s precise value proposition is why Kyobo is right customer and Korea the right market to enter first. Additionally, it’s worth noting that while our current fabrication facility is capable of supporting customers of modest volume requirements, we expect higher volume customers to come into focus once our next, higher volume facility comes online later in 2012. So in the short term, we will keep focused on mostly international markets.
More information: http://www.facebook.com/mirasoldisplays?sk=wall
End of updates
Kyobo Book Center Ereader [Nov 22, 2011]
KYOBO eReader – mirasol [Nov 22, 2011]
Kyobo, Korea’s Largest Bookseller, and Qualcomm Introduce Kyobo-Branded Color E-reader Featuring Qualcomm’s mirasol Display Technology [press release, Nov 21, 2011]
SEOUL, South Korea and SAN DIEGO
Qualcomm MEMS Technologies, Inc. (QMT) a wholly owned subsidiary of Qualcomm Incorporated (NASDAQ: QCOM), and Kyobo Book Centre, Korea’s largest seller of books, today announced the retail availability of the world’s first e-reader to include mirasol® display technology. Kyobo and Qualcomm have collaborated to deliver an unmatched reading experience by providing a large and diverse content portfolio spanning books, magazines and video on a touch display that features vibrant color in bright sunlight. The device allow for weeks of reading under typical usage.*
“Kyobo is a recognized content leader focused on bringing unique and innovative experiences to its customers,” said Clarence Chui, senior vice president and general manager of Qualcomm MEMS Technologies, Inc. “Kyobo’s customers will be the first to enjoy the exceptional color e-reader experience and long battery life that only mirasol displays can provide.”
The Kyobo e-Reader includes access to Kyobo’s 90,000 ebook library, notably including early rights from Korean publisher Minumsa for the much-anticipated Steve Jobs’ exclusive biography, a full one-month before any other Korean digital outlet. Additionally, the device features: video lecture content exclusive to EBS, a leading Korea-based provider of educational material; content sharing through Korean social networking services; English language text-to-speech capabilities; and searchable content through the popular Diotek dictionary application.
“The Kyobo e-Reader brings the user a true book reading experience,” said Mr. Seong-Ryong Kim, chief executive officer of Kyobo Book Centre. “With our diverse content and leading edge technology from Qualcomm, Kyobo Book Centre will provide a premium reading experience to our customers.”
The Kyobo e-Reader features a 5.7” XGA format (1024 x 768 pixels) mirasol display (screen resolution of 223 ppi) and Qualcomm’s 1.0 GHz Snapdragon™ S2 class processor. Kyobo’s custom application interface sits atop an Android 2.3 base.
Kyobo’s e-Reader is now available for purchase at the full retail price of KRW349,000 (US$310). Kyobo Platinum Book Club members can purchase the e-reader at a discounted price of KRW 299,000 (US$265). Kyobo’s e-readers are available at bookstore locations across South Korea, including Kyobo’s flagship Gwanghwamun-jum location in Seoul.
* Battery life varies depending on usage and ambient light. Battery life based upon 30 minutes of daily reading time with Wi-Fi off and front light set to 25 percent utilization [?setting the backlight to 25 percent brightness?].
About Kyobo Book Centre
Kyobo Book Centre has contributed to preserving Korean culture and improving knowledge and education in Korea through its distribution of high quality books and services throughout all of Kyobo Book Centres. Beginning with the Gwanghwa-Moon branch in 1980, Kyobo Book Centre has been Korea’s leading bookstore and an icon of knowledge and education throughout the country with multiple branches and an online presence. Kyobo Book Centre aims to conserve culture, expand knowledge and create a better world for all of humanity.
About Qualcomm MEMS Technologies, Inc.
Qualcomm MEMS Technologies, Inc. has drawn on the same color-producing process that makes a butterfly’s wings shimmer to develop the revolutionary mirasol display technology. The mirasol display is the industry’s first to use interferometric modulation (IMOD); a micro-electro-mechanical systems-based technology capable of creating color from ambient reflected light. Qualcomm’s mirasol displays are bi-stable, energy efficient, offer refresh rates to support interactive content and are highly reflective, allowing for superb viewing quality in a wide range of environmental conditions, including bright sunlight. With applications in a variety of mobile devices, mirasol displays support Qualcomm’s overall strategy of mobile innovation by enabling a compelling viewing experience with significantly less power. For more information, visit the mirasol displays website, our Blog or follow us on Facebook and Twitter.
Qualcomm Incorporated (NASDAQ: QCOM) is the world leader in 3G and next-generation mobile technologies. For more than 25 years, Qualcomm ideas and inventions have driven the evolution of digital communications, linking people everywhere more closely to information, entertainment and each other. For more information, visit Qualcomm’s website, OnQ blog, Twitter and Facebook pages.
mirasol story (MEMS for the IMOD element), innovation story (biomimicry) and the mirasol subsidiary story on the mirasol displays website
Interferometric modulator display – Wikipedia, the free encyclopedia
Chipmaker partners Kyobo in e-book reader, talks with Samsung, SKT [The Korea Times, Nov 22, 2011]
Qualcomm is eager to spread its business tentacles in Korea. Its involvement in developing an e-book reader tailored for Korean customers is just a dot in the bigger picture pursued by the San Diego-based chip giant, according to its CEO.
Paul Jacobs, the charismatic Qualcomm chairman, was in Seoul Tuesday to unveil a new digital reader it developed with Kyobo Book Center, the country’s largest book retailer.
The device is the first in the world to include Qualcomm’s Mirasol technology, which is designed to feature vibrant colors in sunlight, thus eliminating a key flaw that has plagued conventional e-book readers.
Jacobs, who also gave the green light to a plan last year to establish a Korea-based research and development center, said the company continues to seek business opportunities with partners here, although declined to comment specifically on the details or cost of projects currently in the pipeline.
Meeting with Korea Communications Commission (KCC) Chairman Choi See-joong earlier in the day, Jacobs expressed intentions to hire more Korean research personnel for developing telecommunications technologies.
He also met with executives from local technology giants Samsung Electronics and LG Electronics and mobile phone operators SK Telecom and KT to discuss mutual business interests.
Jacobs’ visit to Korea comes amid speculation that Samsung, currently the world’s top seller of smartphones, is considering using non-Qualcomm chips in its upcoming smartphones and touch screen tablets to diversify its parts sources.
“Jacobs clearly wants to reaffirm Samsung’s support of its chips and may offer better pricing for handset vendors, which also overlaps with the business interest of wireless carriers,’’ said a Samsung executive, who asked not to be named.
Qualcomm’s technologies and chips remain vital for devices that run on third generation (3G) and fourth generation (4G) networks.
Samsung and LG are shifting their focus from 3G-based devices to products that run on 4G Long Term Evolution (LTE) networks, which enable faster data movement.
“Jacobs checked out the development phases of tablets and smartphones that use its Snapdragon mobile processors and asked the Koreans for further cooperation,’’ said an SK Telecom official.
Aside of the Mirasol display, Kyobo’s new book reader packs the most advanced technologies Qualcomm currently offer, including its 1-gigahertz Snapdragon processor.
Qualcomm could only hope that its new e-book reader would yield better results than its first Samsung-made entry in the Korean market, which tanked.
“This time will be different because Kyobo will fully manage manufacturing, sales and after-sales (AS) policies,’’ said a spokeswoman from Kyobo.
Qualcomm has been eager to find its next cash-generating sources. Under the basis, it’s been investing heavily for panels. The San Diego-based firm invested more than $1 billion in its latest plant to produce the Mirasol screens.
Jacobs said he is set for operating losses from its Mirasol business because Qualcomm is targeting to put Mirasol on a wider range of electronics in the future, tapping e-readers as it first commercial target.
Qualcomm begins global e-book launch in Korea [The Korea Herald, Nov 22, 2011]
Qualcomm Inc., the world’s largest mobile chip maker, and Korea’s biggest book store Kyobo announced the global launch of an e-book reader based on the Mirasol display technology in Seoul on Tuesday.
Qualcomm said it was the beginning of its global launch of e-book readersas it soon plans to dive into other overseas markets.
“This is the global launch starting with Korea,” Clarence Chui, senior vice president and general manager of Qualcomm MEMS Technologies, told The Korea Herald. “We will be rolling it out in other regions for other customers.”
Chui said he could not comment on the company’s next plan, however, he elaborated that the joint effort conducted with Kyobo was “very aligned with what we’re trying to do.”
The device, dubbed “Kyobo eReader,” will be equipped with a 5.7-inch Mirasol display and Qualcomm’s Snapdragon processor and will cost 349,000 won ($310). Released for the first time on Tuesday, about 93,000 different e-books, including the biography of Steve Jobs written by Walter Isaacson, are currently available for download. It will be sold at online and offline Kyobo stores, and the number of books available will be increased to 100,000 by year end, said a Kyobo official.
“I think everyone knows Korea has a very special place in the history of the company, so we’re here to launch a new product, a new technology and in conjunction with Kyobo, a new vision on how children will be educated and interact with books,” said Qualcomm’s chairman and chief executive Paul Jacobs.
“The device is the first one that has low power, sunlight visibility and also provides color and video ratecapability.”
The new Mirasol display technology, pointed out Jacobs, has enabled Qualcomm to garner a bigger share in the electronics display market. The gadget can go for weeks without additional battery charging and is also capable of video rate response times, according to Qualcomm officials.
“Mirasol is a very flexible technology. We chose to focus on this size because we think it’s a very good match with Kyobo’s vision,” Chui said during a press conference in Seoul.
He also said that the firm will unveil gadgets with different display sizes together with Kyobo and other partnersif it is necessary.
Qualcomm, a company that earns most of its sales revenue from mobile phone processors and radio chips, is moving to expand into displays with its Mirasol technology which it claims extends battery life in handheld devices. The San Diego-based firm is reportedly investing over $1 billion in a new plant to produce the display screens.
The company does have plans to expand the Mirasol display into a wider pool of gadgets, but it has said it works best with e-readers at the moment.
According to the Korea Creative Content Agency, the global e-book industry is projected to grow an average of 27.2 percent by 2014, while the paper book market’s growth rate was expected to average at 1 percent by the same year.
The local e-book market has been referred to as an industry with enormous potential as some expect it to grow 10-fold from 2006 to 2012.
E-books, deemed to become especially popular among overseas Koreans or people who wish to buy Korean-language books in digital format, will be sold for at least 40 percent less than paper books.
In a related effort, the Culture Ministry also announced earlier in April that it would invest 60 billion won over a five-year period to nurture the local e-book industry.
It pledged to work on increasing the ground which the industry could bloom in, standardize e-book publishing technologies and spread digital reading habits.
The plan also includes supporting small and mid-sized publishing firms that have financial difficulties, and will nurture 1,000 people who are needed on-site by 2014.
The ministry said it would assist the production process of 10,000 well-recognized e-book every year and look for talented writers.
A total of 240,000 e-books are to be made available for borrowing from public libraries by the government in 2014.
Experts, however, say the industry — led mostly by small and mid-sized firms — still faces hurdles today in Korea with local giants, such as Samsung Electronics, claiming e-books will only play the part of an application for tablet PCs.
QUALCOMM Incorporated’s CEO Discusses Q4 2011 Results – Earnings Call Transcript [Seeking Alpha, Nov 2, 2011]
… With respect to mirasol, we continue to work with partners on low-volume projects as we await the completion of our new fab. …
… what the drag from mirasol was in fiscal year 2011, and how we should think about that for 2012.
William E. Keitel [executive vice president and chief financial officer]: … on mirasol, we did give an indication at the outset of 2011 that we expected — I think it was — if I remember correctly, we said about a $225 million operating loss. I expect we’ll update that in New York. And at this point — but with the business progressing, the R&D continuing and starting to bring more fab capacity online, we have a larger operating loss built into our guidance.
… on outlook for mirasol, specifically CapEx. I know you’re supposed to spend $1 billion this year. I think Japan pushed some of their CapEx into 2012. Can you give us some sort of updated perspective on where you see CapEx for that going as you continue to build out your fab into 2012 and maybe even beyond?
William E. Keitel: … on the mirasol CapEx. We did slow down what we had planned at the outset of this year to spend on the mirasol CapEx. At this point in our plans for fiscal ’12, we will catch up on the amount that we had originally projected for fiscal ’11.
LCD, E-ink Challenger Mirasol Will Be on Devices in Months [PCWorld, Nov 17, 2011]
…
Qualcomm’s Mirasol display technology, which has been under development for years, will be in full production and in devices by the middle of next year, said Paul Jacobs, CEO of Qualcomm, during a webcast investor meeting earlier this week.
The company is primarily focusing the screen technology on e-readers, but Mirasol displays have also been shown on tablets.
“We have partners who are really excited about the kind of capabilities that Mirasol brings — the ultra low power, sunlight visibility, the fact that we can do video on these things. So the devices are coming out, we’re feeling good about where we’re headed,” Jacobs said.
Displays are the biggest power hog on devices and Mirasol’s low-power attribute is its biggest advantage, Jacobs said.
“If you have an Android phone … you’ll generally see it’s the display that’s using most of the battery. We have just got to deal with the issue,” Jacobs said.
…
The Kyobo device uses a customized version of Android 2.3 and supports WiFi 802.11b/g/n. But here’s where things get interesting (and why I think Matt was so insightful yesterday). The Kyobo’s smarts come from a Qualcomm 1.0-GHz Snapdragon S2 processor. Between the mirasol display and the Snapdragon processor, Qualcomm can indeed offer the key components of a color eReader kit.



Hanvon C18 Color E-reader featuring Qualcomm’s mirasol display. World’s thinnest and lightest color e-reader to be available in China market in early 2012