Nuelight setting up $3mn chip design centre in Hyderabad

To employ 50 engineers to handle full chip design by 2006

US-based Nuelight Corporation is setting up a mixed signal integrated chip design centre in Hyderabad for organic light-emitting diode (OLED) display manufacturers to develop video-centric displays for high-volume consumer products such as smart phones, portable DVD players, laptops, monitors and televisions.

The company plans to invest $3 million in the facility over the next two years, and would employ 50 engineers to handle full chip design by 2006, Nuelight founder and chairman Damoder Reddy told mediapersons here on Thursday.

He said that the centre would have competence to develop sophisticated OLED panel controllers from concept to mass production. Apart from very large scale integration (VLSI) design, the company would also build analog design as well as IC product design capability at its Hyderabad centre.

An OLED device produces light by passing current through thin layers of organic materials, which are sandwiched between two electrodes, one of which is transparent.

OLEDs' key advantages are stated to be low power consumption, outstanding viewing qualities, vivid colours and lower cost. Hence, they are expected to capture the market share of LCDs.

According to Reddy, Nuelight has developed key components of technology (filed 16 patents) to enable the use of OLED displays in high volume markets.

The company has entered into a strategic partnership with one of the largest manufacturer of flat panel displays in the world to build a full colour active matrix OLED display.

He said that the company is planning to raise up to $15 million in the next couple of years for further expansion of its facility at Santa Clara in California.

Nuelight, which was founded in June 2003, raised its first round investment from US based venture capitalists "� Enterprise Partners Venture Capital and Storm Ventures "� that have invested $2 million.

By 2008, Nuelight is expecting to generate a business of over $100 million when the global market for OLEDs is expected to reach the level of over $3 billion annually.