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SPATIALIGHT SIGNS LCoS SUPPLY DEAL WITH LG

LCoS developer SpatiaLight, whose many supply agreements over the last 3 years have yet to bear fruit in the commercial market, signed a new deal with LG Electronics calling for delivery of 21,000 chipsets over the 6 months starting in Jan. The order is SpatiaLight’s largest for a 0.8” microdisplay with 1920x1080p resolution expected to start production this fall.

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The agreement “forecasts” that LG will start “mass production-scale purchases” of SpatiaLight’s 3-chip design starting 2nd half 2005, SpatiaLight said. SpatiaLight also will be the exclusive supplier of 3-chip 1080p LCoS products to LG for 2005 and possibly 2006, the company said. It was unclear at our deadline Fri. how the LG pact squares with similar supply agreements SpatiaLight struck with China Electronics, SCT Optronics, Shanghai China Display and Skyworth Digital. The Skyworth contract, signed Jan. 2003, called for delivery of 14,100 chipsets. But SpatiaLight has shipped just 100 units, as Skyworth redesigns the LCoS-based rear projection TV. SpatiaLight also forged an agreement with Daewoo in March 2003, but that agreement has since been scrapped, officials at both companies have confirmed.

LG, which previously focused much attention on LCD- and DLP- based rear projection TVs, has launched an “ambitious” development strategy for LCoS, LG Chief Engineer Eunho Yoo said. LG didn’t disclose details of the proposed LCoS-based product. LG is considering “product alternatives” for the U.S. market in 2005, but has “no firm plans” yet to introduce TVs based on SpatiaLight’s LCoS technology, a spokesman said: “This will help move the ball forward and we're interested in exploring LCoS” for use in TVs.

SpatiaLight also said it had created a subsidiary in S. Korea and has leased 540,000-sq.-ft. of land in Jinsa for a “large-scale” manufacturing facility. Details, including the size of the plant, cost, number of employees and capacity, weren’t available at our deadline. The SpatiaLight Korea subsidiary will start “immediately” to build the plant, the company said. SpatiaLight has a 14,000-sq.-ft. hq in Novato, Cal., and 2 clean rooms elsewhere in the state for design and development of the microdisplays. It also has an agreement with Fuji Photo Optical supply the light engines and Varitronix to manufacture the microdisplays.