Kodak, SANYO form joint venture to manufacture OLED displays

DECEMBER 6--Eastman Kodak Co. (Rochester, NY; www.kodak.com) and SANYO Electric Co. Ltd. (Gifu, Japan; www.sanyo.co.jp) have formed a global joint venture, the SK Display Corp., to manufacture organic light-emitting diode (OLED) displays for consumer devices such as cameras, PDAs, and portable entertainment machines. Beginning with a pilot facility in early 2002 and graduating to a full-production facility in early 2003, SK Display Corp. will offer a 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 Display Search. Demand for thes edisplays 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.

Kodak will hold a 34% stake in the company and make available its OLED manufacturing technology and an unmatched OLED patent portfolio. Kodak will commit about $125 million in cash and loan guarantees over the next two years.

SANYO will hold a 66% stake and make available its low-temperature polysilicon thin-film transfer technology and manufacturing capabilities. SANYO will commit about $225 million in cash and loan guarantees.