January 2000

NEWS & ANALYSIS
Agilent Dissolves Microdisplay Products Operation
Agilent Technologies, which was recently spun off from Hewlett-Packard Company, decided in mid-November to dissolve their Microdisplay Products Operation (MPO). The unit, a joint venture between HP and Displaytech, was formed in November 1998 after two years of collaborative work. Agilent's decision to disband the operation was done to focus resources on higher priority, core technologies and opportunities in the communications sectors.

Sharp Launches CGS HDTV - For $50K!
We reported in November that Sharp planned to introduce a 60-inch rear-projection monitor using panels fabricated with their internally-developed CG-Silicon technology (formerly CGS, or continuous grain silicon). We figured it would be on the high end of the price range, but Sharp has shocked everyone by announcing the unit will cost a whopping $50K. A similar unit went on sale in Japan in December for 3.7 million yen, much cheaper at current exchange rates (about $36K), but still very expensive.

Intel Priming Microdisplay Infrastructure - Funds CMD
Intel Corporation has an interest in microdisplays. They want to see such display devices succeed in a host of near-to-eye and projection products. Why? Because products that use more and more pixels ultimately will need more processing power to drive them. That will drive the need for higher performance CPU and other associate silicon products - the companys bread and butter offerings.

Philips Quits PALC Development
Philips Electronics NV says they have now withdrawn from continued development of a large area direct-view display technology known as PALC (Plasma Addressed Liquid Crystal). The company was part of a consortium consisting of Philips, Sony Corporation and Sharp Corporation.

MicroDisplay & Hansol Go For Rear-Projection Monitor
Signaling their intention to develop a rear-projection desktop monitor, Hansol Electronics Inc. has signed a development contract with MicroDisplay Corporation. The joint effort represents the industry's first publicized attempt to produce a single-chip, full-color SXGA LCOS projection device. A production-ready product will take about a year to perfect and is currently targeted to be a 21-inch monitor selling for under $2000.

SpatiaLight Readies for Mass Production
SpatiaLight, Inc. says they are now close to beginning mass production of their SXGA liquid-crystal-on-silicon (LCOS) microdisplays. In anticipation of this, the company has closed a private placement of Convertible Secured Notes in the amount of $2,875,000 (see Bottom Line, this issue).

MOEMS Investment Could Help Microdisplays
The use of MOEMS (Micro-Optical-Electrical-Mechanical-Systems) technology is starting draw a lot of attention in the fiber-optic communications field, and that may be very good for microdisplay developers who wish to also exploit the technology. If the use of MEMS or MOEMS devices in communications, molecular biology, and sensor systems takes off, that will help build the infrastructure needed for the fabrication of new and innovative display and scanning devices.

Cree and Nichia Lock Horns
Nichia Chemical Industries has the lead in development of blue lasers and LEDs using GaN (Galium Nitride) materials. But Cree Research is taking on Nichia in blue LEDs by developing devices based upon a SiC (Silicon Carbide) material system. As a result, Nichia has now filed suit against Sumitomo Corporation, a distributor of CREE LEDs in Japan.

New Hologram Material Developed
A promising new hologram material has been developed by a research group at the Tokyo Institute of Technology's Research Laboratory of Resources Utilization. The group used liquid crystal materials made from azobenzene between two layers of resin film. Azobenzene is a chemical compound that balls up when exposed to light but returns to its original shape when it is heated above 70 C.

Applications
Rear Projection
Product and technology news from JVC (61-inch D'Ahlia), Mitsubishi Electric (70-inch DLP videocube), Hitachi (HDTV), Clarity Visual Systems (40-inch videocube), and Kaiser Electronics (21-inch LCOS monitor).

Headsets
Product and technology news from VR Source (Liteye-D), The NorStar Group, Visual Systems Research (3-D immersive headset), Cybermind UK (NTSC/PAL and SVGA headsets), and i-O Display Systems (NTSC headset).

Digital Still Cameras
Product and technology news from Olympus, Minolta Company, Xirlink, National Semiconductor, Polaroid,
IXLA, and Nikon.

Camcorders
Product and technology news from Sharp and Visual Systems Research

Large Area TFT Displays
Product and technology news from LG.Philips LCD Company, Samsung, IBM Technology Group, ViewSonic, MASS, Philips Flat Display Systems and Rainbow Displays.

HDTV
Product and technology news from the Consumer Electronics Association, Hitachi, Toshiba, American Matsushita Electronics Company, Thomson Consumer Electronics, Thomson Multimedia, and Zenith Electronics

Front Projection
Product news from Sharp Electronics and JVC Professional Product Company.

Market Intelligence
Japan Electronics to Grow in 2000
19% of Camera Sales Now Digital
Nokia & Motorola Dominant Cellular Brands
LCD Monitors to Surge on Lower Prices
DTV Sales Picking Up

Bottom Line
SpatiaLight Issues Convertible Notes
Electrohome Restates Q4'99 Results.
Kopin Stock Splits
Laser Power Sheds Microlaser Business

Movers & Shakers
Jack Faiman, William H. Tauskey and Dr. Michael Hack.