Kodak, Sanyo Form Joint Venture to Manufacture OLED Displays
JV Will Capitalize on Demand for Superior Displays by Combining Kodak Technology and Intellectual Property with Sanyo Manufacturing Capabilities
Rochester, NY. and Gifu, Japan. Eastman Kodak Company and SANYO Electric Co., Ltd. announced the formation of a global joint venture, the SK Display Corporation, to manufacture organic light emitting diode (OLED) displays for consumer devices such as cameras, PDAs, and portable entertainment machines.
Today s announcement represents the next step in the companies joint development of OLED technology: the manufacture and sale of active-matrix OLED displays. Beginning with a pilot facility in early 2002 and graduating to a full production facility in early 2003, the SK Display Corporation will offer the world s first full-scale manufacturing facility dedicated to full-color, active-matrix OLED displays.
The market for OLED displays, a key product line within Kodak s newly formed Components Group, is expected to range from $900 million to $3.6 billion by 2005, according to Stanford Resources and DisplaySearch. Demand for these displays is being driven by the growing consumer interest in hand-held electronics and the superior performance of OLED over the liquid crystal technology now in widespread use. OLEDs are brighter, thinner and more colorful than LCDs, provide an unlimited viewing angle and consume less power.
This joint venture with Sanyo is a classic example of how Kodak will leverage its intellectual property to establish high-growth markets that represent significant new business opportunities for the company, said Daniel A. Carp, Kodak s chairman and chief executive officer. By bringing to consumers the best display technology available, we expect to generate $500 million in OLED display sales by 2005.
Following are the key terms of the $350 million joint venture.
This joint venture is one more way Kodak is participating in the $225 billion infoimaging industry, formed by the convergence of imaging and information technology. With OLED displays, electronic devices will fulfill their promise to provide consumers rich visual information and entertainment.
Combining Kodak s and SANYO s technologies, intellectual property, and manufacturing capabilities extends our formidable lead in meeting market demand for active-matrix OLED displays, Carp said. Satoshi Iue, chairman and chief executive officer of SANYO Electric Co, Ltd. said, The rapid development of digital technology and the growing demand for video-enabled IT devices require a new type of display. By capitalizing on the strengths of SANYO and Kodak in OLED development, we will solidify our position as the leader in the market for OLED displays, which are superior for use in next generation multimedia devices. OLED displays consist of self-luminous pixels, which do not require the power-consuming backlights used in LCDs. With its performance and design advantages, OLED technology will enable a new generation of display devices, such as digital cameras, mobile phones and PDAs. These devices will offer clearer images and crisper video, as well as thinner designs than similar products with LCDs.
The SK Display Corporation will begin production of displays ranging in size from one to six inches in early 2002. The venture combines SANYO s technology in fabricating driver circuits on a glass substrate with Kodak s OLED material and device technologies.
This joint venture agreement extends the February 1999 joint development agreement under which Kodak and SANYO successfully developed the world s first active-matrix full-color OLED displays: a 2.4-inch model in September 1999 followed by 5.5-inch displays in May 2000. This technology can also be extended to produce large displays for personal computers and other devices as the market develops.
Eastman Kodak Company and infoimaging Eastman Kodak Company is the world s leader in helping people and businesses take, share, store, and print pictures - traditional or digital. Kodak had sales last year of nearly $14 billion across its photography, commercial, health, entertainment and components businesses. The company s products include professional and consumer digital cameras, laser imagers for radiologists, photographic films for professionals and amateurs, digital services for cinematographers, high-speed document scanners and aerial images. Kodak is a leading participant in infoimaging, a $225 billion industry created by the convergence of images and information technology. Infoimaging unites three closely related imaging markets--devices, such as OLED displays, infrastructure, and services / media--that enable people and businesses to more easily take and share pictures as information, entertainment, or memories. For more information on Kodak, consult www.kodak.com.
SANYO Electric Co., Ltd. SANYO Electric Co., Ltd., is one of the global consumer electronics giants while also leading the way in innovations that are expanding multimedia product technologies. SANYO continues to advance business enterprise development, supplying world-class electronic products such as LCD projectors, digital cameras, and mobile phones to satisfy rapidly evolving markets. SANYO s businesses cover a broad range of multimedia and information systems, home appliances, commercial equipment, electronic devices, batteries, and other products. SANYO s net sales in fiscal 2000, ended in March 31, 2001, amounted to $19 billion. The SANYO group is truly an international organization, consisting of approximately 156 affiliates, employing over 86,000 employees globally. For further information, please visit SANYO s Web site at http://www.sanyo.co.jp
Contact: Kodak, Rochester (Business/Financial Press) Paul Allen Tel: 716/724-5802 paul.allen@kodak.com or Gerard Meuchner Tel: 716/724-4513 gerard.meuchner@kodak.com or (Trade Press) Joe Runde Tel: 716/477-5204 joseph.runde@kodak.com or SANYO, Tokyo Derek Wentz Tel: +81-3-3837-6206 Masaya Tomabechi +81-3-3837-6234
Kodak, Rochester(Business/Financial Press)
Paul Allen
Tel: 716/724-5802
paul.allen@kodak.com
or
Gerard Meuchner
Tel: 716/724-4513
gerard.meuchner@kodak.com
or
(Trade Press)
Joe Runde
Tel: 716/477-5204
joseph.runde@kodak.com
or
SANYO, Tokyo
Derek Wentz
Tel: +81-3-3837-6206
Masaya Tomabechi
+81-3-3837-6234
E-mail: joseph.runde@kodak.com
Web site: http://www.sanyo.co.jp
