Plastic Logic builds e-paper factory

A UK firm producing semiconductors out of plastic instead of silicon has won $100m (£51.5m) in funding to build a factory in Germany.

Plastic Logic will use the plant in Dresden to produce flexible active-matrix modules which act like paper electronic displays. 

"The plant will utilise Plastic Logic's unique process to fabricate active-matrix displays that are thin, light and robust, enabling a reading experience closer to paper than any other technology," said a company statement.

Plastic Logic decided to build the plant in Dresden following an extensive worldwide site selection process.

"Our displays will enable electronic reader products that are as comfortable and natural to read as paper whether you're on a beach, in a train or relaxing on the sofa at home," said John Mills, chief operating officer at Plastic Logic.

"Wireless connectivity will allow you to purchase and download a book or pick up the latest edition of your newspaper wherever you are and whenever you need it."

Mills claimed that the battery life for the technology would last for thousands of pages.

The Dresden plant will have an initial capacity of more than a million display modules per year and production will start in 2008.

Plastic Logic estimates that the market for portable electronic reader devices will grow to 41.6 million units in 2010.

"Plastic Logic has created a pioneering technology that will revolutionise the way people interact with media on the move," said Bandel Carano, managing partner at Oak Investment Partners, which is backing the deal.