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.