Polaroid Awarded $3.9 Million Contract to Develop Domestic Supplier Base for Flat-Panel Displays

Strategic Insights -

Polaroid Corporation, a global leader in instant imaging, has been awarded a $3.9 million contract to develop a domestic supplier base for the next generation of high-definition, flat-panel display screens. The 2.5-year development contract, awarded on a competitive bid basis, is the second largest signed to date by the U.S. Display Consortium. As part of the joint development agreement, Polaroid is committing $7 million of its own money to expand and improve its manufacturing capability for three types of optical films used in liquid crystal display (LCD) screens.

The market for flat-panel displays is expected to grow significantly, with estimates suggesting it will reach at least $20 billion a year by 2000, up from $4 billion in 1994. Despite the growth, U.S. companies currently supply only about three percent of worldwide demand for flat-panel displays. The U.S. Display Consortium (USDC) regards flat-panel displays as critical to national security and the competitiveness of the U.S. electronics industry.

Key Takeaways:

  • Polaroid has been awarded a $3.9 million contract to develop a domestic supplier base for the next generation of flat-panel displays.
  • The contract is part of a public-private partnership between Polaroid and the U.S. Display Consortium.
  • Polaroid is committing $7 million of its own money to expand its manufacturing capability for three types of optical films used in LCD screens.
  • The market for flat-panel displays is expected to grow to at least $20 billion a year by 2000.
  • U.S. companies currently supply only about three percent of worldwide demand for flat-panel displays.
  • The U.S. Display Consortium regards flat-panel displays as critical to national security and the competitiveness of the U.S. electronics industry.
  • Polaroid has a history of innovating imaging technology, including the development of flat-panel displays a decade ago.
  • The company has halted production of flat-panel displays in the past due to lack of domestic suppliers of key electrical components.
  • Polaroid is partnering with the North American FPD Division of Semiconductor Equipment and Materials International (SEMI) to develop the U.S.-based FPD infrastructure.

Statistics:

  • The market for flat-panel displays is expected to grow to at least $20 billion a year by 2000.
  • U.S. companies currently supply only about three percent of worldwide demand for flat-panel displays.
  • Polaroid is committing $7 million of its own money to expand its manufacturing capability for optical films.
  • The contract is for a 2.5-year development period.
  • The U.S. Display Consortium is an industry-led, public/private partnership providing a common platform for flat-panel display manufacturers and developers.

Sources:

  • PRNewswire, "Polaroid Corporation and U.S. Display Consortium Announce Public-Private Partnership to Develop Domestic Supplier Base for Flat-Panel Displays"
  • U.S. Display Consortium, "USDC and Polaroid Partner to Develop Domestic Supplier Base for Flat-Panel Displays"
  • Semiconductor Equipment and Materials International (SEMI), "SEMI and USDC Partner to Develop U.S.-Based FPD Infrastructure"