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Below is a cut and paste from Yahoo News. This will put pressure on the other TV set manufacutres to lower pricing as well.


Tom



Tuesday November 13 9:35 PM ET

HDTV Supplier SpatiaLight Cuts Deal


NOVATO, Calif. (AP) - High-definition television equipment supplier SpatiaLight Inc. announced Tuesday that a major Chinese electronics manufacturer has agreed to use the company's microdisplay devices in an effort to improve the picture quality of rear-projection TVs.


China Electronics Corp., a government-backed conglomerate, will make up to 300,000 rear-projection TVs that use SpatiaLight's ``liquid crystal on silicon,'' or LCoS display devices. Novato-based SpatiaLight touts its technology as a way to improve the picture quality of high-definition TV while also dramatically lowering the sales price.


A 52-inch rear projection TV using LCoS will cost about $3,500, SpatiaLight Chairman Larry Matteson estimated.


The CEC deal could generate the first substantial revenue for SpatiaLight after a decade in research and development. CEC plans to make 2,000 TVs using SpatiaLight's technology next year before expanding to 60,000 TVs in 2003 and 200,000 TVs in 2004. The production targets could bring SpatiaLight more than $410 million in revenue during the next three years, the company said.


SpatiaLight's shares dipped 5 cents to close at $3.39 Tuesday on the Nasdaq Stock Market.
 

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According to one supplier to Thomson, the company, eventually, plans to price its RCA Scenium, L50000, 50" LCOS model in the $2,500 range.


As the price and availabilty of wafers/chips improve, no reason why LCOS can't compete head on with CRTs.
 

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This new set from China Electronics, of course, is nowhere near market. While it -- and the RCA -- remain fascinating, neither exists for all intents and purposes.


The China Elec. set is essentially being advertised as a 2003 product (2000 units next year = effectively zero).


The LCOS display, while intriguing, hasn't yet proven itself to be any good at all. It has also proven near impossible to make. Samsung has abandoned production of its 43" unit and has hinted that production of its 50" unit is going to be low volume.


A 50" LCOS in 2003 at $2500-3500 will have to compete with DLP-based units of the same price and those DLP units will have been made in much, much higher quantities and which are based on a technology that is:


(a) far more proven an ubiquitous (yes, I know there are D-ILA projectors and that some are great, but there are tons of DLP projectors, many of which are also great)


(b) far, far easier to manufacture in quantity. If the LCOS sets are $3500, by that time the DLPs should be $2500.


Oh, and don't forget my friend plasma. The 50" sets will fall to around $7500 in 2002 and $5500 in 2003 and $4000 in 2004. They are going to be stunning, gorgeous, wall-hanging, etc. They are going to be 6th generation by 2003; while the LCOS sets are going to be first generation.


FWIW,

Mark
 

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These types of Press Releases occur all the time. It is about getting the ticker tape to move. The Chinese are very eager for this technology, but they lack the optical expertise.


Regarding the merits of LCOS TV. Try to get into the CES show this coming. RCA's LCOS will show you what this is all about. HCTV is about resolution. LCOS is about Resolution. The products are starting to show up.


Five Years ago, DLP was just starting to receive the same kind of skeptical talk. That is the first step.
 
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