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Thu 11 Jan 2007 12:27 PM

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Plastic logical choice for UK chip company

Plastic Logic is to become the first firm to manufacture semiconductors out of plastic rather than silicon.

The company announced earlier this month it is to build a factory in Dresden, Germany, and expects it to be operational by the end of 2008.

The move comes after Plastic Logic secured US$100million to fund the plant’s construction from a number of venture capital investment firms.

By using cheaper plastic over silicon and utilising a simpler set of processing operations, Plastic Logic’s innovation has the potential to slash the cost of making semiconductors — some estimates put the reduction as high as 90%.

Plastic Logic said it hopes to be producing 2.2 million units of A4-sized semiconductor sheets a year by 2009.

The chips will initially be used to produce display modules for portable electronic reader devices, the market for which is expected to grow substantially.

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