CustomerCentric: Technology Driven - What does this mean for Liquid Crystals?

1. Customer Centric - Technology Driven
What does this mean for Liquid Crystals ?
ProcessNet 2008, Karlsruhe, 08.10.2008
Dr. Werner Becker, Liquid Crystals Division, Technology & Regulatory Affairs

2. Contents
• Merck company structure and Merck today
• The product portfolio of the Liquid Crystals
Division
• Strategy as a material supplier for the FPD industry
• Customer Centric
• R&D
• Production
• Quality
• Reliability
• Technology Driven
• LC-mixture development strategy
• Summary
Dr. Werner Becker, Merck KGaA, LC T & RA Customer Centric – Technoloy Driven ProcessNet 2008, Karlsruhe, 08.10.08 2

3. Merck KGaA Company Structure
Pharmaceuticals Chemicals
Ethicals = Merck Serono Liquid Crystals
An attractive global
Consumer Health Care Performance & Life
company built on Science Solutions
Pharmaceuticals & Chemicals
Dr. Werner Becker, Merck KGaA, LC T & RA Customer Centric – Technoloy Driven ProcessNet 2008, Karlsruhe, 08.10.08 3

4. Merck Today
• Merck went public in 1995 and
operates 192 companies in 60
countries.
• The Merck family owns 70% of
the shares; the rest is publicly
traded.
• About 31.000 employees
worldwide (~ 10.000 in Germany)
• Revenues 2007: 7.057 Mio. €
• F&E expend.: 1.028 Mio. €
Headquarters in Darmstadt today
• Revenues LC Div.: 916 Mio. €
1.2 km2 Area;
• F&E expend. LC: 79 Mio. €
Liquid Crystal Production in G20 and G1
Dr. Werner Becker, Merck KGaA, LC T & RA Customer Centric – Technoloy Driven ProcessNet 2008, Karlsruhe, 08.10.08 4

5. The product portfolio of the
Liquid Crystals Division
Dr. Werner Becker, Merck KGaA, LC T & RA Customer Centric – Technoloy Driven ProcessNet 2008, Karlsruhe, 08.10.08 5

6. The “Working Horse”
• Over 500 people world-
wide develop and produce
liquid crystals for all kinds
of applications such as:
- Notebook PCs
- PC Monitors
- LCD TVs
- Mobile Phones
- Navigation Systems and other
- Automotive Instruments
- Electronic Organizers (PDAs)
- Measuring Instruments
- Digital Signage
- Audio and Video Equipment
- Avionics
- Calculators
- Clocks, Watches, etc.
Dr. Werner Becker, Merck KGaA, LC T & RA Customer Centric – Technoloy Driven ProcessNet 2008, Karlsruhe, 08.10.08 6

7. Emerging Technologies
With more than 100 researchers we are active in
the development of innovative materials for
electro-optical applications such as:
Organic light-emitting
materials for OLED
displays and for new
large-surface light
sources
Dr. Werner Becker, Merck KGaA, LC T & RA Customer Centric – Technoloy Driven ProcessNet 2008, Karlsruhe, 08.10.08 7

8. Emerging Technologies
Colour Shift
Reactive Mesogens
for compensation
and protection
films in displays
Viewing Angle Dependence
of Contrast
Merck materials make clearer pictures.
Grey Scale Inversion
Dr. Werner Becker, Merck KGaA, LC T & RA Customer Centric – Technoloy Driven ProcessNet 2008, Karlsruhe, 08.10.08 8

9. Emerging Technologies
Structuring Materials for photovoltaic
and display applications
Dr. Werner Becker, Merck KGaA, LC T & RA Customer Centric – Technoloy Driven ProcessNet 2008, Karlsruhe, 08.10.08 9

10. Emerging Technologies
Organic Electronics for flexible displays,
photovoltaic and RFID tags
Courtesy
PolyIC
Dr. Werner Becker, Merck KGaA, LC T & RA Customer Centric – Technoloy Driven ProcessNet 2008, Karlsruhe, 08.10.08 10

11. Strategy as a Material Supplier for
the FPD industry
Customer Centric
Technology Driven
Dr. Werner Becker, Merck KGaA, LC T & RA Customer Centric – Technoloy Driven ProcessNet 2008, Karlsruhe, 08.10.08 11

12. Strategy as a Material Supplier for
the FPD industry
Customer Centric
Technology Driven
Dr. Werner Becker, Merck KGaA, LC T & RA Customer Centric – Technoloy Driven ProcessNet 2008, Karlsruhe, 08.10.08 12

13. Liquid Crystals Sales Development
and Early Asian Activities
1000
Mio €
900
Setup Infrastructure in Korea
800
1989
700
Setup Infrastructure in Japan Setup Infrastructure
600
1980 in Taiwan 1996
500
400
300
200
100
0
70
80
90
00
04
06
75
95
05
07
85
19
19
19
20
20
20
19
19
20
20
19
Dr. Werner Becker, Merck KGaA, LC T & RA Customer Centric – Technoloy Driven ProcessNet 2008, Karlsruhe, 08.10.08 13

14. LC Competence Network Close to
the Customers
CTC (UK) MJ (Japan)
Chemical MAT (Korea)
Engineering Lab.
Application Lab.
and Physical Application Lab.
Reliability Lab
R&D for Polymer Reliability Lab
Mixture Development
Material Mixture Development
Mixture Production
Reactive Mixture Production
Mesogens
MDT (Taiwan)
MDA(Germany) Application Lab.
Chemical Research Reliability Lab
Physical Research Mixture Development
Engineering Research Mixture Production
Mixture Development
Reliability Lab
Components Production
Dr. Werner Becker, Merck KGaA, LC T & RA Customer Centric – Technoloy Driven ProcessNet 2008, Karlsruhe, 08.10.08 14

15. General Statements on Merck`s
Strategy – R&D
Merck is technology leader for LC-materials and meets the
requirements of the LCD industry with continued
investments in R&D
at the headquarters in Darmstadt and
at the 3 local Technical Centers – close to our
customers - in Japan, Korea and Taiwan.
Dr. Werner Becker, Merck KGaA, LC T & RA Customer Centric – Technoloy Driven ProcessNet 2008, Karlsruhe, 08.10.08 15

16. Relation between Liquid Crystals and the
Endproducts-From LC Single Substances to the LCD
LC single substances LC mixture LC Displays
Liquid Crystals are
toxicologically and
eco-toxicologically
safe materials !
Mixing of up to 25 substances or more
Dr. Werner Becker, Merck KGaA, LC T & RA Customer Centric – Technoloy Driven ProcessNet 2008, Karlsruhe, 08.10.08 16

17. General Statements on Merck`s
Strategy – Production
Merck is the leading producer
of LC-materials with
production of single
substances in Darmstadt.
Largest and most modern
factory in the world for LC
component manufacturing;
Investment: EUR 250 million
Dr. Werner Becker, Merck KGaA, LC T & RA Customer Centric – Technoloy Driven ProcessNet 2008, Karlsruhe, 08.10.08 17

18. General Statements on Merck`s
Strategy – Production
“close to the customers” production centres for LC-mixtures
and continued efforts to optimize and harmonize processes
and productivity will guarantee business continuity and
contribute to the success of our customers.
Atsugi, Japan, 1981 Poseung,Korea, 2002 Kuan Yin, Taiwan, 2006
Dr. Werner Becker, Merck KGaA, LC T & RA Customer Centric – Technoloy Driven ProcessNet 2008, Karlsruhe, 08.10.08 18

19. General Statements on Merck`s
Strategy – Quality
Quality is a key success
factor for Merck.
The company-wide
establishment of
“Six Sigma” will ensure
the continuity of highest
quality standards for our
customers.
New Innovation and QC
Center in Atsugi, Japan
Dr. Werner Becker, Merck KGaA, LC T & RA Customer Centric – Technoloy Driven ProcessNet 2008, Karlsruhe, 08.10.08 19

20. General Statements on Merck`s
Strategy – Display Reliability Labs
• Physical and chemical analysis of defects in LCD panels
and panel components ensures fast response to customer
requests and complaints.
• This also supports our LC mixture development in terms of
display reliability.
• The development of tools to reproduce our customers’
reliability problems and characterize them in a quantitative
and qualitative way helps to elucidate their root causes.
• A close cooperation with other raw material suppliers helps
to solve problems fast and efficiently.
This Avoids problems before they arise!
Dr. Werner Becker, Merck KGaA, LC T & RA Customer Centric – Technoloy Driven ProcessNet 2008, Karlsruhe, 08.10.08 20

21. Strategy as a Material Supplier for
the FPD industry
Customer Centric
Technology Driven
Dr. Werner Becker, Merck KGaA, LC T & RA Customer Centric – Technoloy Driven ProcessNet 2008, Karlsruhe, 08.10.08 21

22. Future Trends in LCDs and their
Impact on Merck´s R&D
• LCD TV: higher frame rates (200 Hz) for faster response,
scanning backlights (LEDs), higher colour gamut
• Monitors: faster switching for game applications, also
higher frame rates, multimedia content
• Notebooks: product trends: multimedia content, lower power
consumption, wider operating ranges
• PIDs: ultimate reliability, also for outdoor use
Impacts on LC mixture parameters have to be carefully
evaluated by Merck taking into account the general
evolution of the LCD technology.
Dr. Werner Becker, Merck KGaA, LC T & RA Customer Centric – Technoloy Driven ProcessNet 2008, Karlsruhe, 08.10.08 22

23. Consequences: Shared Visions with
Customers and OEMs
• Shared Visions with customers secure fastest progress
for future LCDs.
• For optimum integrated solutions to today’s LCD
performance targets, close collaboration between LCD
manufacturers and Merck is indispensable.
• In a continuous effort, Merck is pushing the limits of mixture
performance further. In order to do it “into the right direction”,
it is essential to have a common understanding with LCD
manufacturers about future LCD trends.
Mutual understanding about our technical abilities and the
trends in the display market will lead to target-oriented R&D
activities on both sides.
Dr. Werner Becker, Merck KGaA, LC T & RA Customer Centric – Technoloy Driven ProcessNet 2008, Karlsruhe, 08.10.08 23

24. Summary
• Merck is market and technology leader in Liquid Crystals.
• The product portfolio of the LC Division comprises:
– Liquid Crystals, OLED materials, Reactive Mesogens, Organic
Semiconductors and Structuring Materials
• Merck´s strategy as material supplier to the FPD industry:
• Customer Centric:
– Merck has R&D and production centres close to customers
– Quality (6 Sigma) and reliability are key success factors for Merck.
• Technology Driven:
– Merck closely monitors and follows all trends in the LCD industry.
– Shared visions with customers secure fastest progress for future LCD.
Dr. Werner Becker, Merck KGaA, LC T & RA Customer Centric – Technoloy Driven ProcessNet 2008, Karlsruhe, 08.10.08 24

25. „Take it easy ...“
The truth about the
manufacture of Flat
Panel Displays
Dr. Werner Becker, Merck KGaA, LC T & RA Customer Centric – Technoloy Driven ProcessNet 2008, Karlsruhe, 08.10.08 25

26. „Take it easy ...“
The truth about the
manufacture of Flat
Panel Displays
Dr. Werner Becker, Merck KGaA, LC T & RA Customer Centric – Technoloy Driven ProcessNet 2008, Karlsruhe, 08.10.08 26

27. Vielen Dank für Ihre Aufmerksamkeit
Dr. Werner Becker, Merck KGaA, LC T & RA Customer Centric – Technoloy Driven ProcessNet 2008, Karlsruhe, 08.10.08 27

28. Operational
Principle
of the
Twisted
Nematic
Dr. Werner Becker, Merck KGaA, LC T & RA Customer Centric – Technoloy Driven
Cell (TN Cell)28
ProcessNet 2008, Karlsruhe, 08.10.08

29. In Plane Switching (IPS)-Mode
d = cell thickness
l = electrode distance
~
πl Κ22 Large Δε is of essential importance for
Vth~ d
ε0Δε low operating voltage
Dr. Werner Becker, Merck KGaA, LC T & RA Customer Centric – Technoloy Driven ProcessNet 2008, Karlsruhe, 08.10.08 29

30. Vertically Aligned (VA)-Mode
Polarizer
Glass Substrate
ITO
Layer
Orientation Layer
~
Liquid
Crystal
Dr. Werner Becker, Merck KGaA, LC T & RA Customer Centric – Technoloy Driven ProcessNet 2008, Karlsruhe, 08.10.08 30