Optical Alignment Technique To Improve LCD Quality and Price
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1 ELECTRONICS/COMPUTER HARDWARE/COMMUNICATIONS Elsicn (frmerly Alliant Techsystems, Inc., and Hercules) Optical Alignment Technique T Imprve LCD Quality and Price Liquid crystal displays (LCDs) are incrprated int myriad technlgies ranging frm autmated teller machines (ATMs) and cmputers t kitchen appliances and autmtive dashbards. Althugh American businesses and cnsumers spend billins each year n these types f equipment, LCD brightness and clarity prblems persist, and the high csts assciated with LCDs remain. Fr years, the Asian marketplace has dminated LCD manufacturing, while the United States has been eager t establish a strnger psitin in the industry. Recgnizing the ptential grwth f LCD technlgy and the need t find better ways t mass-prduce LCDs, Hercules, a glbal manufacturer f chemical specialty prducts fr a variety f markets, cnceived f an ptical prductin technique that had the ptential t enhance LCD quality and imprve the ecnmies f scale in LCD prductin. At the time, hwever, Hercules was a small cmpany withut a sizeable research budget. The risk invlved in develping a generic new technlgy fr LCDs was t high fr Hercules t bear alne; therefre, the cmpany applied t the Advanced Technlgy Prgram (ATP) fr research funds in 1993 and received an award in February Thrugh this ATP-funded prject, the cmpany develped prcesses and materials that have been applied t several prttype LCDs. Elsicn acquired the ptical technlgy in 1997 and nw markets prducts and services fr the ptical alignment f LCDs. COMPOSITE PERFORMANCE SCORE (based n a fur star rating) * * Research and data fr Status Reprt were cllected during Octber - December Prductin Technlgy Is Cmplicated, Expensive, and Errr-Prne The grwth in the demand fr liquid crystal displays (LCDs) and mnitrs in the early 1990s was accmpanied by an increasing need t imprve manufacturing prcesses fr these prducts t reduce cst and imprve quality. T ensure the clarity and brightness f LCDs, manufacturers must precisely align the crystals within them. Older, less expensive LCDs were ften fuzzy and unclear because f imprper alignment. Existing LCD technlgy exhibited high sensitivity t dust, requiring expensive islatin rms t minimize errrs. The industry tried t slve these prblems thrugh mechanical buffing, an alignment prcess that used a plymer film adjined t the display t align the crystals. Althugh this prcess imprved the clarity f the LCDs, it prduced less-than-perfect results, was expensive, and led t defects in the displays. Static electricity, fr example, caused a prblem when the mechanical buffing film tuched the liquid crystal medium, thereby creating "dead" crystals. Althugh LCDs cnsist f many small crystals, just a few dead crystals can substantially reduce display image quality, frcing the manufacturer t scrap the prduct. This prblem ccurred frequently with prducts that cntained a large number f crystals, such as larger laptp mnitrs, desktp flat-screen displays, and flatscreen televisins. An innvatin that culd align crystals withut making cntact with the liquid crystal medium wuld minimize the risk f damaging the displays. The resultant benefits f this innvatin wuld include reduced scrap waste, tremendus cst savings t the users f LCDs, and greater verall quality f the prduct. Befre this ATP prject, alignment techniques fr LCD prductin relied n a prcess that created "alignment masters" that had limited reuse capabilities. Attempts t
2 increase the number f times a master culd be reused prved unsuccessful. Cnsequently, despite large-scale prductin f LCDs, the prductin csts remained high. If an alignment prcess culd be created that eliminated the need fr these expensive masters, manufacturers culd reduce prductin csts and imprve LCD quality. ATP Funding Crucial t Enabling Generic LCD Technlgy Hercules prpsed a sund research plan that they wuld fllw t create a new generic LCD manufacturing technlgy. Hwever, as a small cmpany, it culd nt take n the risks f this endeavr alne. Therefre, Hercules submitted a prpsal t ATP in 1993 and in 1994 was awarded $1.67 millin t cnduct its prpsed research. New Technlgy Prmises Lwer Csts and Higher Quality The gal f this ATP prject was t develp an ptical alignment technique t be used in the prductin f LCDs that wuld incrprate a nncntact prcess t eliminate the static electricity prblem assciated with the existing mechanical buffing prcess and t imprve display quality. The cmpany prjected that the use f an ptical alignment technique wuld be less expensive, less prne t display errrs, and mre suitable fr mass prductin than the existing buffing prcess. Optical alignment equipment is much smaller and less expensive t transprt. Mrever, the use f this nncntact technique wuld als eliminate the need fr expensive islatin rms. In additin, the ptical alignment technique wuld prvide cst savings by eliminating the need fr expensive masters, thereby reducing verhead csts. Researchers Achieve Technical Innvatins During the prject, the researchers achieved their technical gals and successfully develped the materials and prcesses required fr the ptical alignment f LCDs. Technical accmplishments that resulted frm this prject included the fllwing: Creatin f a clrless ptical alignment material Intrductin f an ptical alignment material with pre-tilts fr bth hmgeneus and hmetrpic alignment cnfiguratins Develpment f materials with gd dielectric prperties measured by vltage-hlding rati and residual DC vltage Demnstratin f thermal and ptical stability Develpment f a prcess t use an ultravilet lamp as a light surce with acceptable thrughput Establishment f testing capabilities t characterize electrical, ptical, and electrptical prperties f ptical alignment materials and liquid crystal test cells Fabricatin f liquid crystal test cells with nnrubbing ptical alignment technlgy Hercules cnceived f an ptical prductin technique that had the ptential t enhance LCD quality and imprve the ecnmies f scale in LCD prductin. The cmpany cntinued t search fr new applicatins that culd benefit frm this technique. Tward the end f the prject, they perfrmed research t develp technlgy slutins fr the mst imprtant new mdes f flat displays with wide viewing angles. Hercules Evlves frm Research t Prduct Develpment In 1995, partway thrugh the ATP prject, Alliant Techsystems (a U.S. aerspace and defense cmpany) acquired the aerspace prtin f Hercules, including its LCD-related technlgy. Althugh the LCD prducts fell utside the scpe f Alliant's strategic fcus, the cmpany recgnized the business ptential f the ATPfunded prject and helped t frm a separate business unit t fcus n the prject's gals. As the ATP prject came t a clse in 1997, the ptical technlgy develped at Hercules and Alliant Techsystems was divested and sld t privately held Elsicn. Elsicn has
3 cntinued t develp the ATP-funded technlgies, including a pre-tilt analysis system fr LCDs, which reduces the risk f defects in the rientatin f the liquid crystals, and a research and develpment tl that enables identificatin f the prcess parameters fr the ptical alignment f LCDs and devices. Elsicn als sells a measurement system fr the vltage-hlding rati, a critical electrical parameter fr LCDs. Finally, the cmpany ffers the materials that supprt the ptical alignment f LCDs. Elsicn sells and markets these prducts thrugh a Japanese partner, Japan Strage Battery Cmpany, because LCD manufacturers are lcated predminantly in East Asia. Tday, Elsicn generates revenue frm cntracts, licenses, and cnsulting assignments that are related t the technlgy develped during the ATP prject. Prject Benefits Elsicn and Creates Ecnmic Spillver In June 1997, Elsicn received a $1.65 millin cntract t develp new materials and prcesses fr ptical alignment frm the U.S. Display Cnsrtium (USDC), a public-private partnership based in San Jse, CA, which aims t establish a U.S. infrastructure t supprt highdefinitin display manufacturing. The USDC, which has 130 crprate members and als receives supprt frm the Defense Advanced Research Prjects Agency in the U.S. Department f Defense, paid 50 percent f the $3.3 millin cst t develp a scaledup manufacturing prcess, with Elsicn funding the ther half. Accrding t Dr. Rbert Pinnel, the Chief Technical Officer f USDC, Elsicn "...built upn a strng fundatin f intellectual prperty in patents and knwhw that were develped under a prir grant in the NIST- ATP prgram. The research and prf f feasibility develped under the ATP grant will nw be supprted tward practical realizatin in fulfillment f the USDC missin." The alignment prcess has appeared in several prttype LCDs frm varius glbal manufacturers, but nne f these manufacturers has brught its prttype int mass prductin. LCD manufacturers wrldwide are evaluating the prducts cmmercialized frm this prject. Althugh the prducts have nt yet been fully incrprated int manufacturing prcesses fr mass prductin and large-scale sales, initial results frm the prducts are psitive. Elsicn cntinues t sell and seek licensing fr the prducts and prcesses develped during the ATP prject, creating a sund fundatin fr its future. Benefits fr Elsicn, hwever, represent nly a fractin f the brader ecnmic benefits that may be prvided by ptical alignment LCD technlgy. Current and future benefits include mre efficient manufacturing prcesses, higher quality displays, lwer cst t users, and a larger knwledge base fr the develpment f future technlgies. In 2000, the LCD market was $20 billin wrldwide fr laptps, persnal digital assistants, and ther technlgies that rely n flat displays. With the demand fr these prducts increasing rapidly, the high cst f LCD mnitrs represents a burden n the ecnmy as well as n cnsumers. As the enhanced prductin technlgy spreads in the industry, the cst advantages are expected t translate int lwer prices fr the displays, benefiting American businesses and cnsumers. ATP Award Sustained the Prject and Ensured a Shrt Develpment Life Cycle Had the prject nt received supprt and funding frm ATP, Alliant Techsystems wuld likely have abandned the develpment f the ptical alignment technique because f the lack f funding, preventing the imprtant innvatins that ccurred as a result f the prject. The LCD technlgies fell utside the scpe f Alliant's strategic fcus, and the prject culd nt rely n additinal internal funding. Thus, external funding was critical in ensuring the timely cmpletin f the prject. Cnclusin Elsicn is in the prcess f evaluating its ptical alignment technlgy, knwn as OptiAlign TM, in the liquid crystal display (LCD) manufacturing industry. The cmpany has frmed strategic partnerships and alliances that prvide feedback, allwing researchers t further refine the technlgy and facilitate its implementatin. An evaluatin f OptiAlign TM is currently under way by a number f manufacturers in East Asia, Eurpe, and Nrth America. The results have been very prmising and suggest that the technlgies may lead t new and imprved flat displays.
4 PROJECT HIGHLIGHTS Elsicn (frmerly Alliant Techsystems, Inc., and Hercules) Prject Title: Optical Alignment Technique T Imprve LCD Quality and Price (Optically Cntrlled Alignment Materials fr Liquid Crystal Displays) Prject: T reduce the cst and imprve the yield f liquid crystal displays (LCD) manufacturing by develping ptically cntrlled alignment materials and prcesses t replace the mechanical buffing prcess, thereby expanding the LCD applicatins base in ptical data strage and signal prcessing. Duratin: 2/1/1994-1/31/1997 ATP Number: "Prcess and materials fr inducing pre-tilt in liquid (N. 5,856,430: filed March 31, 1997, granted January 5, 1999) "Flurinated amine prducts" (N. 5,929,201: filed May 20, 1997, granted July 27, 1999) "Plarizable amines and plyimides fr ptical alignment f liquid crystals" (N. 6,084,057: filed May 20, 1997, granted July 4, 2000) Funding (in thusands): ATP Final Cst $1,670 55% Participant Final Cst 1,370 45% Ttal $3,040 Accmplishments: During the prject, the researchers achieved their technical gals and successfully develped the materials and prcesses required fr the ptical alignment f LCDs. The prject led t the develpment f successful technlgies as well as marketable prducts. The U.S. Patent and Trademark Office granted the fllwing patents that stemmed directly frm the research cnducted during the ATP prject. These patents, which Elsicn purchased frm Alliant, serve t disseminate the knwledge created by the prject. "Liquid crystal ptical strage medium with gray scale" (N. 5,846,452: filed April 6, 1995, granted December 8, 1998) (N. 5,731,405: filed March 29, 1996, granted March 24, 1998) "Prcess and materials fr aligning liquid crystals and liquid crystal ptical elements" (N. 5,807,498: filed March 29, 1996, granted September 15, 1998) (N. 5,817,743: filed May 14, 1996, granted Octber 6, 1998) "Materials fr aligning liquid crystals" (N. 5,965,691: filed July 1, 1997, granted Octber 12, 1999) (N. 5,856,431: filed Nvember 7, 1997, granted January 5, 1999) "Plarizable amines and plyimides fr ptical alignment f liquid crystals" (N. 6,043,337: filed May 18, 1998, granted March 28, 2000) "Prcess fr materials fr aligning liquid crystals and liquid crystal ptical elements" (N. 6,200,655: filed January 25, 1999, granted March 13, 2001) "Plymides fr ptical alignment f liquid crystal displays" (N. 6,451,960: filed February 4, 2000, granted September 17, 2002) Cmmercializatin Status: The ATP prject resulted in the develpment and patenting f several new technlgies, which nw prvide a platfrm fr the cmmercializatin f a series f prducts and services related t the ptical alignment f LCDs at Elsicn. The alignment prcess has appeared in several prttype LCDs frm varius glbal manufacturers. Nne f these manufacturers has brught its prttype int mass prductin, and until that happens, Elsicn will nt pursue upfrnt licensing fees when entering int agreements with manufacturers, pting instead fr a percentage f ttal sales. Elsicn views this as the strategy that will bth generate the mst revenue and distribute the technlgy t the largest
5 number f manufacturers. LCD manufacturers arund the glbe are evaluating the prducts cmmercialized frm this prject. Althugh the prducts have nt yet been fully incrprated int manufacturing prcesses fr mass prductin and large-scale sales, initial results frm the prducts are psitive. Outlk: Elsicn is in the prcess f implementing its ptical alignment technlgy, knwn as OptiAlign TM, in the LCD manufacturing industry. Fr the lnger term, the cmpany is develping similar technlgies related t ptical data strage and ptical signal prcessing. Thse prducts include liquid crystal-based strage media, liquid crystal diffractive and hlgraphic elements, phase and plarizatin devices, dcument security, and fast ptical cmmunicatin devices. By cnducting research in ptical signal prcessing, used in the ptical netwrking industry, the cmpany is wrking t develp a fundatin fr additinal successful technlgies. Cmpsite Perfrmance Scre: * * Cmpany: Elsicn, Inc. Delaware Technlgy Park Innvatin Way Newark, DE Cntact: Dr. Sha-Tang Sun Phne: (302) Research and data fr Status Reprt were cllected during Octber - December 2001.
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