Here’s the press release:

Hsinchu, Taiwan — August 3, 2012 – E Ink® Holdings, “E Ink” (8069.TW), the global leader in electronic paper and LCD technologies, today announced that it has signed a definitive agreement to buy shares of SiPix Technology, Inc. (STI) and its wholly owned subsidiary SiPix Imaging, Inc. (SII), the maker of electronic paper displays. Established in 1999, SiPix, based in California and Taiwan, makes micro‐cup technology based electrophoretic displays.

The combined company will offer a vast portfolio of ePaper products that will allow it to expand its existing markets and diversify into newer applications. E Ink’s ePaper offers the best digital reading experience. It is easier on the eyes, consumes a fraction of the power compared to traditional displays. It is readable in sunlight, lightweight, rugged and field proven with over 50 million ePaper displays being used worldwide.

“E Ink is committed to growing the ePaper market and the purchase of SiPix shares is part of our long term growth strategy,” said Scott Liu, Chairman of E Ink Holdings. “Our goal is ‘E Ink On Every Smart Surface’ and we are continuing to make investments in technologies that will open new markets for our ePaper displays.”

“In the recent past, we enabled an entire eReader market with our electronic paper,” said Felix Ho, Vice Chairman of E Ink Holdings. “Today, E Ink’s products are finding homes in a number of new applications which can be better served with the inclusion of SiPix’s products, technologies and intellectual property to our portfolio.”

This purchase shows E Ink’s strong commitment to electronic paper displays. In the past 15 years, E Ink has made substantial investments in inventing, designing, manufacturing and marketing ePaper displays to create new markets.

E Ink and SiPix’s customers will now have a wider portfolio of products and technologies to choose from with a larger global network of offices to support customers in different geographies. With this purchase, E Ink will have the widest offerings of ePaper technologies, a larger set of products and a stronger patent portfolio.

E Ink currently enjoys over 90%+ share in the eReader market with customers such as Amazon, Barnes & Noble, Bookeen, Ectaco, Hanvon, iRiver, Kobo, Sony, Wexler and others. E Ink also makes ePaper displays for Signage, Electronic Shelf Labels, Battery and Memory Indicators, Wrist Watches, Credit Cards, Mobile Phones and a variety of other applications. Its customers include Epson, Pervasive Displays, Motorola, Lexar, Citizen, Seiko, Toppan, Invue, Eton, Motion Display, Neolux and many others.

E Ink has reached an agreement to buy 82.7% of SiPix’s (STI) shares and is seeking to buy up to 100%, which is valued at approximately NT$1.5 billion. After customary regulatory approvals, the final closing is likely to be during Q4, 2012.

My guess is maybe they plan to combine Sharp’s Indium Gallium Zinc Oxide (IGZO) with Hydis’s Advanced Fringe Field Switching (AFFS) for LCD screen manufacturing. The cross-licensing agreement lasts 10 years from now.

Here’s the press release:

July 12, 2012, Hsinchu, Taiwan – E Ink® Holdings (8069.TW), the leading developer
and  marketer  of  electronic  paper  display  technologies and  FFS  LCD  technologies,
today  announced  that  the  company and  its South  Korean  subsidiary  Hydis
Technologies,  have  each signed  a  patent  cross‐licensing  agreement  for  TFT  LCD
products with Sharp Corporation of Japan.

Under the  terms of each Agreement, which will be in effect  for  ten  (10)  years,  the
two parties will be able  to use certain proprietary  technologies of  the other in the
manufacturing of LCDs.   The agreements make provision for the payment of patent
licensing royalty.  In addition, during the effective period of the Agreements, the two
sides  will  maintain  patent  peace  to  exempt  each  Company and  their customers’
operations  from patent  interference  and  allow each  of  the  parties  to  focus  on
business development.

Hydis’ Fringe Field Switching (FFS) technology is currently used in LCD‐based tablet
PCs, smart  phones,  and  other  high‐end  handheld  devices.    LCDs  using  FFS
technology provide users with a wide viewing angle, high contrast, high‐resolution
display with  the  benefit  of  lower  power  consumption and  is  superior  to  other
similar wide  viewing  angle  technologies in  the market.   Hydis FFS  technology has
been  licensed  to  other prominent LCD  manufacturers  in  the  past,  and  these new
agreements will continue to broaden the use of the technology.  Future applications
of the FFS technology include notebook computers and television, markets in which
the potential growth for utilizing Hydis’ FFS technology remain huge.

“We  are  very  excited  about  these agreements with  Sharp,”  stated  Scott  Liu,
Chairman  of  E  Ink  Holdings.    “FFS  technology  can  greatly  enhance  a  user’s  LCD
experience,  and licensing  to  other leading  LCD makers will  allow  us  to  reach  new
markets and customers.”

Related articles

• E Ink, Sharp sign patent cross-licensing deal (zdnet.com)

E Ink CMO Sri Peruvemba shows new products and concepts from E Ink and their partners, including traffic lights, crosswalks, kayak and bike computers, and various signage.

Source: E Ink’s YouTube Channel

Here is the press release:

-South Korea-based TFT-LCD panel maker Hydis Technologies, a subsidiary of Taiwan-based E Ink Holdings Inc., today announced that they will add on-cell touch screen panel (TSP) technology to their LCD portfolio of offerings.

“With on-cell touch, we are able to combine the best LCD in the world with a touch technology that offers better performance at lower cost.”

Hydis is able to offer the TSP technology with on-cell touch, which provides the customer a slim and lightweight form factor, with the added benefit of lower cost versus traditional touch technologies. The touch functionality is embedded within the display itself rather than as a separate component atop the display. This results in more precise touch with better optics due to reduction in parallax errors. In addition, LCDs with this touch technology consumes less power and can take advantage of cost reductions in manufacturing due to the reduction of a glass layer and the alleviation of the need for a separate touch panel supplier.

Hydis will begin offering the on-cell technology to the smartphone and tablet markets beginning this month. Hydis is perhaps best known as the inventors and providers of Fringe Field Switching (FFS) technology, which is featured in many smartphones and most tablets currently in the market. FFS LCD provides a wider viewing angle and color gamut, consumes less power and offers better high ambient readability than traditional LCDs. Hydis’ publicly announced customers include Dell, HP, Lenovo, Kobo & Siemens, among others.

“Hydis’ FFS technology is preferred by Tablet and Smart phone makers worldwide,” said Johnson Lee, Chairman of Hydis Technologies. “With on-cell touch, we are able to combine the best LCD in the world with a touch technology that offers better performance at lower cost.”

Is this new touch screen technology really better and cheaper than capacitive? Hydis’s Fringe Field Switching (FFS) technology is already in use by for example the iPad and other popular LCD tablets. Does it support multi-touch? Does it support pen input? Is it really more precise than capacitive? I look forward to try it out. Perhaps Hydis will show it off at Computex next week? I’ll be video-blogging 50 or more videos from Computex next week so check back for those.

Check out this interview on Forbes.com with Sriram Peruvemba CMO at E Ink Holdings. Here are some quotes from the interview:

The big five in the LCD industry based on 2011 revenues are Samsung, LG, CMI, AUO and Sharp. It costs upwards of $1B to build a TV-class LCD factory in Asia. A state of the art Gen 10 LCD factory might cost upwards of $3B if built today. In the past few years, the industry has been more in the red than in the black. Margins in the display business tend to be razor thin, particularly in consumer applications.

So what makes LCDs rule? There is one spec that LCD has that beats every other technology, and when I mention this to a room full of engineers, they think I have crossed over to the dark side. This spec is called “price,” which is the most important spec for displays.

Take your favorite TV or mobile phone, the display is what catches your attention. A significant portion of the purchase decision for a TV, Monitor or GPS unit is based on the impression created by the display, yet the average consumer has no idea who made the display. Being an ingredient display brand in the consumer electronics industry is very tough, I can tell you this from personal experience.

Read the full interview at Forbes.com