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New LED Rear Projection TV
The final of the ARC-Lamps ?
By John Dodge, Editor-in-Chief --
Electronic Business, 7/25/2006
When Samsung wowed show-goers with 56-inch
rear-projection TVs based on LED technology, most people on the floor had
no idea that the solid-state light source inside was provided by Luminus
Devices, a three-year-old startup in Woburn, Mass.
But Luminus, housed in a modest, low-slung building resembling a strip
mall, could be one of next year’s hottest small companies. The company’s
goals are ambitious: it wants to replace virtually all the arc lamps used
in rear-projection TVs with LEDs during 2008 and capture a quarter of the
market next year. If it succeeds, Luminus would go from marginal revenue
today to several hundred million dollars in two years, according to
Christian Hoepfner, the company’s vice president of products.
Hoepfner contends that other LED makers like
Cree, OSRAM and Philips Lumileds are not the competition because they
cannot replicate the brightness of Luminus’ PhlatLight technology. At the
same time, he claims that most, if not all, major rear-projection TV
makers are “working with” PhlatLight. Eleven TV makers showed six
different rear-projection designs at CES in January, he says.
“The competition we are concerned with are plasma TVs. Our customers are
interested in using our light source to compete with plasma,” Hoepfner
says. “We are working with all the makers [of rear-projection] TV makers.”
Not so fast, says Matt Brennesholtz, a senior analyst at Insight Media in
Norwalk, Conn., who is familiar with PhlatLight. “Doing it by 2008 is not
realistic. The lamp people are not going to take this lying down, and
there are less expensive lamps coming in the next couple of years,” he
says. “I don’t expect their penetration will be that high.”
For certain, Luminus will face competition in LEDs and in the overall TV
market, which is roiling with new and established technologies that are
evolving quickly. LCD sets that use LEDs for backlighting are beginning to
challenge rear projection and plasma in the larger screen sizes. And while
expensive, laser-based TVs boasting better color and reliability will
likely debut next year.
Indeed, a company called Novalux in Sunnyvale, Calif., just showed a
laser-based rear-projection high-definition TV that it says produces
heretofore unprecedented clarity and colors. And Mitsubishi Digital
Electronics America has also shown a laser TV that it claims exceeds the
already spectacular picture produced by Luminus’ LEDs.
But if PhlatLight is as good as the company is saying and lives up to the
reviews it has earned so far, Luminus will almost certainly be a major
player in rear-projection TVs. The technology offers several benefits.

Brightness, according to Luminus, ranges from 400 to 2500 lumens in red,
green and blue, obviating the need for the color wheel used in lamp-based
sets (one has to don eye protection to view a PhlatLight demo). This level
of brightness, which has long been a challenge for LEDs, is achieved
through more uniform collimation of light through the LED chip’s top
surface as the result of the company’s photonic lattice technology.
Although yet to prove itself, a PhlatLight chip set promises 60,000 hours
of continuous use versus several thousand for a lamp, says Hoepfner. It
also doesn’t use the hazardous materials in lamps such as mercury, xenon,
argon, sodium and metal halide. And it’s instant “on” versus the warm up
time of a lamp.
The first rear-projection set will debut in September from Samsung and is
already in production, according to Dan Schinasi, senior marketing manager
at Samsung Electronics. Hoepfner says an unspecified Japanese maker will
also unveil one in September.
“By September, they should be widespread. We’ll offer them in specialty
retailers such as Tweeter and Magnolia, and they’ll carry a $700 premium,”
says Schinasi. “Luminus’ technology is as good as it gets.” Samsung is
promising 20,000 hours of use with the LEDs, and without the degradation
over time that comes with lamps.
However, Samsung won’t put all its eggs in one basket and, like many big
TV makers, has stakes in plasma, LCDs and lasers, whose barrier now is
high cost. And its deep existing relationship with Philips–a huge player
in both LEDs and conventional lighting–will hardly go away.
“Just because we don’t have a product now does not mean we won’t be there.
In each case, there’s a lot that will happen in rear projection and LCDs,”
says Steve Landau, marketing communications manager at Philips Lumileds.
“You will see a lot of changes over the next couple of years.”
On June 28, Philips Lumileds announced it had shattered LED brilliance
records with devices that could be used in rear-projection TVs.
Discounting the entry of a $38 billion giant would be foolhardy.
OSRAM, another European lighting giant, apparently will square off against
Luminus with a planned “market entrance” with LEDs in rear-projection TVs,
according to Marion Reichl, an executive at OSRAM Opto Semiconductors. She
did not elaborate, but said a paper was recently published on its entry.
However, a survey of OSRAM’s Web sites indicates its LED efforts are
heavily tilted toward general lighting applications.
“We know the PhlatLight technology, but do not comment on a competitor’s
activities,” Reichl added.
For its parts, Cree is betting on LCD TVs and will bypass a confrontation
with Luminus in rear projection.
“Our primary play is backlighting LCDs. Rear projection will remain, but
primarily as a niche. At this point, we do not have an active program for
rear projection,” says Mike Dunn, Cree’s vice president of solid-state
lighting, who adds that he sees the plasma market falling off as LCDs get
bigger. “We’ve chosen to pursue the LCD market.”
Perhaps Luminus, whose products are in production and are well known at
this point, has awakened the giants. It will be first to market in
rear-projection TVs, and all other things being equal, that might be all
it takes.
For now, the company is heads-down on production, having just raised $38
million in venture funding to expand manufacturing and build a second fab
to offload its facility in Woburn.
“Marketing is not a difficult task for us,” says Hoepfner, implying that
plenty of customers have already signed up for PhlatLight, although the
only one he will name is Samsung.
Could an IPO be the next funding event? “That’s quite possible,” he says.
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