Interview with Fusion Optix CEO Terry Yeo by Mark Fihn for the LCD TV Association Newsletter, Volume 3
Please give us some background information about Fusion Optix.
Fusion Optix is a 4-year old company based in Cambridge, MA. We are privately held with investment from Goldman Sachs (London), Prudence Capital (Taiwan), and a group of East Coast angel investors.
We own nearly 30 patents in the areas of materials science, optical components and optical systems. Our mission statement is to become a leading provider of optical films and components, such as light guides and diffuser plates, and LED backlighting solutions. We have recently transitioned from R&D phase to become commercial and we are shipping product, and have programs in place with several major industry players, and are growing rapidly. At the core of our unique value proposition is a disruptive materials technology. Most of our manufacturing capabilities are in-house, and we partner with reputable companies that have established manufacturing processes and assets when necessary, for instance in order to better serve the large area, large volume requirements of the global LCD industry. In addition we have established in-house rapid prototyping and assembly capabilities so we can innovate more freely and develop new products at pace.
Is there any particular meaning behind the company name?
Actually, yes there is. The name was chosen to reflect that we are experts on optics, clearly, and we are focused on the combination of optics and materials science to create advanced optical components. Mingling these components leads to advanced system design, thus a fusion of technologies, ideas, scientific principles, design, and most importantly, optics is created.
Can you start off by giving us a short tutorial about LCD backlight design and light diffusion technologies that have traditionally been used in LCDs?
Most LCDs are non reflective and require a backlight module in order to make the image visible. These backlights fall broadly into two different design camps namely edge-lit and direct-lit. With respect to edge-lit displays, the optical system in an LCD backlight consists of a light guide that extracts light from the light source and carries it across the active display area maintaining as much uniformity as possible. Then there is a set of optical films to diffuse the light source without losing significant light and a prism film or two to collimate the light and maximize head-on brightness for the viewer. In high-end LCDs, a polarization recycling film is used to boost brightness, but these are costly films. In direct-lit systems, the light guide is replaced by a diffuser plate to help smooth out the light source and the rest of the optical system is similar to the edge-lit design.
Typically, the light guide is clear acrylic or polycarbonate with a scribed or screen printed pattern on one side to extract light. The diffusers are clear PET films with beaded coatings that create a diffusion effect. Prism films are clear PET films with a modified acrylic prism structure to collimate light using the principles of reflection and refraction.
Now, please give us an overview of the technologies that you are bringing to the market.
Our ambition is that Fusion Optix’s disruptive materials technology and new system designs will fundamentally change the way people think of LCD backlighting. At the heart of our unique technology platform is series of optical films based on volumetric diffusion—a totally new and unique film technology. The diffusion material is in the bulk of the film, not on the surface, which means a one-step manufacturing process and no expensive beads or extra tooling is required. Through the manufacturing process, we control the size, shape, and distribution of the diffusion particles, and can achieve a virtually limitless range of angles. We also control the surface of the film, and offer matte or glossy finishes depending on the application. Multifunctional films are also possible where prism or other light redirecting structures are coated or embossed onto the film.
Because we can achieve both symmetric and asymmetric diffusion profiles, we have more freedom within the optical system. For example, we find that using a high angle asymmetric film as a bottom diffuser eliminates the need for the diffuser plate in an LCD TV, and it is more efficient than the current system design. Additionally, asymmetric diffusers are very effective at homogenizing point light sources, making them ideal for LED backlighting. Fusion Optix has been focusing on LED backlight design that leverages our unique diffusers.
Fusion Optix has developed a disruptive materials-based technology platform
Central to our value proposition is matching diffusion requirements to LED sources
Also, we’ve developed a series of light guides for LCD backlighting that allows us to edge-light small-medium area displays. The next step is to incorporate the volumetric diffusion technology into these light guides to provide extra diffusion and possibly eliminate the number of components in these backlights. We were recently awarded a US patent to cover this approach at both a light guide and backlight and panel system level.
Most light management solutions to date have used PET film substrates. Tell us about your preferred materials.
We actually stick with PET as the base material for many of our films, but we also work with PETg, PC, and a variety of lesser-known high performance polymers. Materials science is a large part of what we do and much of our early development work was centered on optimizing the materials choice. Efficiency, shrinkage, robustness—these, and many others, are all key factors that contribute to materials choice, and we pay close attention to these issues. One of our major partners is NOVA Chemical, a leading polymer material company in North America. Together, we have developed several unique and proprietary materials systems to helps maximize our technology’s potential.
By adding prism and microlens structures to your diffusion films, you can effectively deliver collimation and diffusion in a single film. Tell us why this of benefit.
Many traditional diffusers have some collimation effect as a result of the surface structures, but this is almost a by-product of the necessary beaded coating. By adding a prism (or microlens) structure to the surface, we achieve BEF-like performance as well as diffusion in the same film. Depending on the light source and system configuration, this can reduce the number of films in the film stack. The diffuse base film is adjustable, meaning we take the asymmetric films mentioned above and turn them into brightness-uniformity enhancement films.
Cost is the driving factor for LCD backlight design, and we are aware of the pricing struggle taking place in the LCD industry. Eliminating a component or two without compromising performance is a significant benefit given the current supply chain climate.
If I look at a TV with your multi-functional film, can I actually see a difference from the predecessor solution?
It comes down to optical system configuration. Yes—you will see higher brightness and even improved viewing angles, depending on the rest of the backlight system. In a CCFL-lit TV, as most on the market are, the best way to approach the system is to eliminate the diffuser plate and diffusion films and instead insert our asymmetric bottom diffuser and multifunctional film in order to achieve maximum efficiency, which in turn means higher brightness levels. In conjunction with traditional optics, the full benefit of our films is less apparent. This is why we have taken a systems approach in the last year—we realize that the fusion of optics is what creates a truly high performing system.
Fusion Optix components and backlight designs result in brighter displays with wider viewing angles
Why do we need your solutions – why not just make brighter and brighter lamps?
With brighter and brighter lamps come more and more lumens to control. The problem with new HB LED backlighting approaches is no longer the efficiency of the light source so much as the control of the light. The backlight designers and LCD panel companies are finding it difficult to solve the headlamp and hotspot issues associated with LED backlighting because traditional diffusers are not effective. They were designed for Lambertian light sources in a specific configuration. Diffusing high-bright point light sources requires a new kind of diffuser that can handle the lumens and directionality.
Fusion Optix recently showcased a sub 1cm thick 24” monitor with its enabling LED backlight design at CES 2008 in Las Vegas
Our solutions aren’t just about increasing brightness—we are in the business of controlling light, whether it’s collimating, diffusing, redirecting, etc.
You are treading into the waters that have long been dominated by 3M. What is it that you which is different from 3M’s Brightness Enhancement Film solutions?
This is a common misconception in the market: Fusion Optix is not trying to compete with 3M. 3M is not trying to diffuse—true, we are collimating, but we add prisms to our diffusers to enhance overall system performance. The fundamental difference, the diffusion layer, is so unique that it’s hard to pit us against a company whose technology is based on clear PET. We prefer to consider ourselves as opening up the design space and creating more options for the display systems engineer.
Are your films appropriate for all display sizes, (mobile phone sizes up to the largest LCD TV)? Or do you see LCD TVs as the primary area on which to focus your energies?
Yes, one of the other film properties we control is gauge: we’ve made films as thin as 20µm and as thick as 1000µm with little variance. In terms of performance, our films are beneficial in LCDs of all sizes.
You are focused on LED backlighting systems, which are currently still a relatively small piece of the LCD TV market. Is your technology not well-suited for CCFL solutions, or did you decide to focus on LED backlighting solutions for a specific reason?
All of our products work with CCFL, it is just that we have chosen to focus on a systems level mainly on LED backlighting solutions. We have different types of diffusers and there is a home for each one in flat panel displays. Whether Lambertian or collimated, the light source determines the diffusion strength and distribution, then we go from there to find the best solution. All of our products were developed in the CCFL atmosphere, but when it comes to enabling the new wave, we are more than compatible with LEDs. Our technology is so complementary, and LED backlighting solutions are in such high demand that it seems silly not to focus on this emerging trend. We can actually help LCD TV get there faster.
RGB backlighting could enable LCD makers to eliminate the color filter. Give us your thoughts on this technology and how your films might help.
Whenever a backlight systems designer is trying to achieve a different result to the established design Fusion Optix believes it can play a role in enabling the new design objectives. New RGB backlighting designs that are specifically attempting to eliminate color filters demand higher levels of precision in diffusion and light control. In simple terms, existing films are rather crude and these new designs need the optical film to put light exactly where it is needed in order to reduce unwanted cross talk and loss of color fidelity.
Since cost and performance are almost always trade-offs to the LCD maker, do you see feel they are primarily focused on reducing cost (maintaining current performance), or is the interest more in terms of improving performance, even if there are cost concerns?
As I mentioned earlier, cost reduction is clearly a primary concern for the high volume consumer electronics focused segments of our industry. We receive a lot of interest and demand for cheaper versions of existing products but we believe there is still plenty of room for innovation. For instance, our solution to cost reduction is to offer components that can potentially reduce the number of components necessary to reach acceptable performance levels. Our aim is to reduce lamp and LED count and to reduce the number of film or sheet components used. Furthermore, our solutions enable the widespread adoption of LEDs, the new rage in backlighting for obvious reasons. I think that cost is still the driving factor with respect to CCFL-based LCDs, and suppliers are getting squeezed left and right because there has been no real system innovation. Introducing a new light source, that is innovative, and a long time coming for larger size LCDs. The LED factor is alerting consumers to the fact that their electronics could be helping to save the planet; Apple and others have aligned their electronics with the green movement, putting a certain amount of pressure on the LCD panel guys to deliver not just to Apple, but to Apple’s loyal customer base. In this area, we find that performance outweighs cost as the OEMs struggle to make green displays that actually look good.
Considering increasing concerns about the environment, are there any things you are doing that help facilitate “green” electronics?
Yes, the big push, green electronics. Being a young company, we are passionately pursuing greener products. At first, LEDs were bright and robust and certain specialty display companies needed them for practical reasons. Now, with the push from companies like Apple, we see that green consumer electronics are the next big thing and our solutions help fuel the fire. By enabling the adoption of a greener light source, we are participating in this movement. By designing highly efficient optical systems, we are saving energy. Finally, by reducing the number of components in the backlight, we are manufacturing less plastic and reducing waste.
There are huge efforts underway to create flexible displays, but these developments are almost entirely based on emissive or reflective display technologies.
Can you foresee a time when flexible transmissive displays might be able to utilize some sort of flexible backlighting solution?
We certainly think this a possibility and we have been able to demonstrate a flexible backlight approach based upon our core technology. We would be interested in hearing from developers of flexible displays to see if this is worth taking any further. Technically there are some interesting possibilities; the answer to the question though, is probably more in the business model of the flexible display company.
The ongoing trend from 1280x720 to 1365x768 to 1920x1080 – and now to even higher resolutions – is certain to increase demands associated with improved light management. Is your technology ambivalent about pixel pitch, or do you have to do special things as resolution increases?
Effectively we are ambivalent about pixel pitch. Our technology is based upon core optics technology that is off the order of 5um in physical size and is entirely random. We have specifically developed our approach so that as displays become higher resolution we can continue to offer our solutions.
Similarly, recent interest in 3D displays will almost certainly require brighter backlighting solutions. Is there anything special you are doing to develop films for the 3D LCDs?
There are a number of different approaches to achieve 3D performance; the backlight can play a role in quite a few. Since most require some additional filter or lens system to be placed in front of the panel, there is a need for brighter backlights. In some cases control of the backlight optical output is also important. For instance, we have recently seen interest in a version of our LED backlights that has an unusually narrow distribution in one axis. We developed this backlight to help eliminate the privacy filters typically used in ATMs, but it appears to have found a use with 3D display developers since it helps ensure minimal cross talk between the two channels that typically combine with colored or polarized glasses to create the 3D effect.
Example of optical output from Fusion Optix collimated backlight
Do you regard your primary customers as the backlight makers or the LCD manufacturers?
Interestingly enough, we’re seeing a shift in our customer base directly related to LED backlighting. For a long time, due to the inflexible LCD supply chain, we focused on backlight makers as our primary customer base for obvious reasons. But for an industry that moves so fast, we are finding resistance to innovation. What I mean by that is simply that backlight makers are reluctant to do anything other than build what the LCD manufacturers tell them to build with little or no design freedom. So when Fusion Optix shows up with truly innovative designs, it’s a hard sell. Many times, it’s easier for the LCD manufacturers to understand the implication of our systems and quite frankly, this puts us in competition with the backlight makers. But we don’t and most likely won’t build backlights, so competition is not the way to look at the situation. I think we prefer a situation in which the LCD manufacturer specifies our design and associated components to the backlight maker. We then supply the components to the backlight maker. That way, we all win. We sell our components, the backlight maker gets their traditional assembly business and the LCD manufacturer gets a higher performing or lower cost product that helps drive their sales.
Do your customers want to buy films from you, or do they seem more interested in licensing the technology from you?
In most cases, people are quite happy to leave the film manufacturing up to us. Virtually all our enquiries now are for us to supply films, and the volumes are going up. In the past though licensing certainly came to the forefront of many customer discussions. We have also been approached by several “players” to license our patent portfolio. In some cases we have also had to fend off competitive situations that started as enquiries about licensing, despite our strong patent position. To be honest it feels like ours were a fairly typical set of experiences for a young technology company trying to establish itself; mostly those are behind us now.
Tell us about your manufacturing operations.
We have an in-house film line that can product films up to 12” wide. We are in complete control of this asset and use it both for production and rapid prototyping purposes. Large volume film manufacturing is very capital intensive, so we have gone down the path of partnering with reputable, well-established film manufacturers, some involved in this industry and some not. For medium volume applications, we work with smaller toll manufacturers in North America. In both situations, we have transferred proprietary technology and retain ownership and control of the materials, process and product related IP, and we have a dedicated team in-house that leads these efforts.
Please describe what you think Fusion Optix will look like three years from now.
Our mission statement is to become recognized as the leaders in innovation centered on LCD backlighting technology. It’s not about revenue (okay, it’s always about revenue), but more importantly it’s about helping consumers gain access to the highest performing, best looking displays possible. We want to partner with our customers to eliminate innovation barriers, broaden the design spae, and get the latest and greatest into people’s homes. We also want to be at the forefront of the adoption of LED technology and greener products. Outside of displays we are involved in several lighting programs with some major players in that market. Although the adoption of LEDs in lighting is lagging displays somewhat, we see it as a very exciting opportunity.
Finally; tell us one of your favorite customer success stories.
It’s always nice when a customer reveals that Fusion Optix is a “must have” or when in the middle of a meeting they remark “wow this is really cool stuff!” I don’t think I will ever get tired of that, and it makes a lot of the hard work worthwhile. A specific story that comes to mind happened quite recently. We had been working on an internal program to develop a completely new LED backlight design which was fairly blue sky. We weren’t sure exactly how much demand the product would generate but we had a very good hunch that it would be interesting to a number of companies and the performance was unique enough to persuade us to push it forward. The product required a completely new approach to optical film and light guide design and we were keen to try this out and measure the performance in a fully assembled system. About a week or so after we pulled together a technology demonstrator and gathered the initial test results we were in a meeting with a customer. They were asking us to provide some films and the discussion got fairly detailed to a point where after an hour or so we had developed a baseline system level specification table. At this point we pulled out the test results from the week before complete with pretty pictures to show a near perfect match as if to reunite twins separated at birth. We bagged a PO right there and then. It was a great feeling!!
