merck chemicals - merck makes communication visible

Liquid CrystalsMerck makes communication visible

[email protected]

Sales growth in the Liquid Crystals

division between the years 1970

and 2005 refl ects the very rapid

development in the area of liquid

crystal displays.

Contents

Forewords . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

Flat is beautifulLCDs as part of our modern life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

Chemistry for home cinema, SMS, chat room & Co .LCs and LCD technology from Merck . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Team solutions wantedCustomer-centric research & development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

On our venture for innovationsMerck’s OLED activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Consolidating our strong market positionActive patent strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Focus on customer proximityLC locations in Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Rooted in DarmstadtCompany profile of Merck KGaA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Contacts to Merck’s LC experts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

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Dear Readers,Have you seen liquid crystals in action yet today? In your alarm clock perhaps? Or in the display of your mobile phone? Our chemistry makes light, energy-saving displays possible, and these in turn make fast information – and modern communication – visible – for it’s liquid crystals that magic sharp images onto the LCDs of our computer monitors and televi-sions .

The history of these substances is one of Merck’s great success stories . Over 100 years ago – shortly after the botanist Friedrich Reinitzer discovered, by chance more than anything, the phenomenon of the liquid crystal phase – Merck already began to pro-vide these chemicals to scientists . A pure research topic evolved into an innovation when the first LC display was presented at the end of the 1960s . LCs became an economic success in the 1980s: Through “family tree chemistry”, for example, we could help to speed up the production process . The strategic focus on LCs for TFT displays and the formation of a customer-centric, independent division proved to be good decisions . Our firm belief in the future poten-tial of these unusual substances and, above all, the close cooperation of our interdisciplinary teams of

chemists, physicists and applications engineers with our customers have been the key to our continued technology leadership – and our undisputed global market leadership – in liquid crystals .

By keeping a finger on the market pulse, we were able to anticipate the huge increases in demand arising from the first boom in mobile phones, then computer monitors and now televisions: Already years ago, we made the decision to invest 250 mil-lion euros at the site of our headquarters in Darm-stadt for setting up a new production plant for liquid crystals . We have also further expanded our mixture production capacities in good time at our production sites in Asia . Thus we are optimally prepared for the continuous rise in demand of the Asia-based display industry for LC mixtures, above all for notebooks, PC monitors and the extremely successful LCD televi-sions .

We are sure that we are on the right track . By pro-viding sufficient production capacities, building a comprehensive patent portfolio and investing heavily in research, we will consolidate and further expand our strong market position . Key to this are the knowledge and motivation of our team-oriented, entrepreneurial employees .

I wish you pleasurable reading of our new brochure about the international, customer-centric activities of our Liquid Crystals division .Sincerely,

Dr . Michael Römer

Dr. Michael Römer

Chairman of the

Executive Board of

Merck KGaA

In a word ……let’s be honest: Who could have ever predicted such a huge boom in mobile phones? And the next boom of its kind is in the making . This time in the area of LCD televisions . At present 50 million house-holds worldwide already have one of these stylish and superflat LCD TVs – and in just two years’ time there are expected to be over 100 million . Tendency: rising!

This has all been made possible thanks to our super-fluorinated liquid crystals . These are a totally new generation of liquid crystals and without them the large liquid crystal displays needed for fast-mov-ing television images could not be realized . This was such a pioneering new development that our researchers were awarded the German Future Prize for it by the Federal President in 2003 .

We are proud of our achievements . But we do not want to, and will not, rest on our laurels . Our liquid crystal research daily serves the wishes of our cus-tomers, who place the highest expectations on us and on the development of new, special liquid crys-tals for even larger, higher-resolution televisions . From South Korea, Taiwan, Japan and Hong Kong we supply our customers directly and just-in-time with liquid crystal mixtures that are customized for the application .

And although liquid crystal displays will presumably remain the dominant flat panel display technology for years to come, it is natural to us that we are now already working on potential future technologies . In the field of organic light-emitting diodes (OLEDs) we have expanded our portfolio by acquiring two top-class competence teams . On the one hand, we aim to develop innovative light sources that could be used for home lighting, household appliances and LCD backlighting, as well as in the automotive industry . On the other hand, OLEDs are also suitable to pro-duce small and above all flexible displays – although some technical problems need to be solved before this can be realized . We are working intensively, particularly with our research teams in Frankfurt and Mainz, on the continuation of the scientific success story .

The success of liquid crystals is due above all to our intensive, close and trustworthy cooperation with the display industry . We and our customers have always had a very special relationship: A fruitful alliance and partnership based on mutual trust and cooperation – a relationship of giving and taking for the benefit of each other . I would like to express my special thanks for this on behalf of all employees of the Liquid Crystals division .Sincerely,

Dr. Paul Breddels

Dr. Paul Breddels

Executive Vice Pre-

sident of the Liquid

Crystals division

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Flat LCD televisions, with their captivating picture quality, have replaced bulky televisions in shop

windows. The race for computer monitors has already been decided: Already twice as many LCD

monitors as cathode ray tube monitors were sold in 2005.

Liquid Crystals – Merck makes communication visible

Merck has been active in the liquid crystal business for over 100 years – although in the early days you could hardly have referred to it as a business. It was rather a case of Merck pro-viding scientists with liquid crystal substances for their research in the company’s known high degree of purity. It was not until 1967 – after a Sleeping Beauty-like slumber for liquid crystals – when the first technical application of liquid crystals in displays was presented, that Merck took up the thread again and started actual business.

Liquid crystals are found in the displays of electronic games and mobile phones, PC moni-tors and notebooks, navigation systems and many mobile devices, as well as televisions and industrial control panels. Whereas the displays of automated teller machines (ATMs) and cash dispensers have a narrow viewing angle that prevents unwanted viewing from either side, televisions should have a wider viewing angle that allows us a clear view from a variety of positions in the room. Special displays – and consequently special liquid crystal mixtures – are needed for each of these applications.

Liquid crystals from Merck – 100 years of experience, competence and technology leadership . Liquid crystal displays can be encountered everywhere in our modern world, and there is practically no area of our daily lives where not at least one LCD plays an essential role.

Flat is beautiful

Flat is beautifulLCDs as part of our modern life

Liquid crystals : The botanist

Friedrich Reinitzer was the first

to observe a peculiar behavior

of cholesteryl benzoate

while investigating its

melting point; the physicist

Otto Lehmann explained it by

assuming a new, yet unknown state of

aggregation and introduced the term “liquid

crystals”. Since 1904, suitable substances

with liquid crystalline properties have their

place not only in this box of collections from

the laboratory but also in Merck‘s catalog of

chemicals.

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Today, there is a huge demand for liquid crys-tal displays. The market is demanding new products ever faster. The trends and needs of consumers are changing at an ever quicker pace and have to be rapidly satisfied by inno-vative products. Not only must the electronics and display industry keep up with this pace – Merck also faces this challenge as a research-based chemical company and leading manufac-turer. Every new application requires a custom-ized liquid crystal mixture. And we are able to develop, produce and deliver this just-in-time.

Merck’s Liquid Crystals division

For years, Merck has been the world’s leading producer of LCD materials . As partner to the display and electronics industry, Merck supplies liquid crystals, LC mixtures, and spherical spacers for maintaining uniform layer thickness in LCDs, as well as reactive mesogens for optical films used to enhance the optical properties of LCDs .

Merck supports its customers from research and development through to high-volume production, and makes the required quantities of LC mixtures available just-in-time worldwide . Meanwhile, several hundred employees at many sites world-wide contribute their motivation and diverse abilities to the division . All are united by a strong team spirit – for the challenges of this strong-growth market can only be met by intense and open exchange of information and experience .

In contact with his distant spouse –

and Florian Skirl has his digital diary with him.

Flat is beautiful

Ross Young, President of DisplaySearch, Austin, United States, a leading

expert for the flat panel display market: Merck is the global market

leader for liquid crystals. The market development of new products,

particularly in the electronics sector, depends on many factors. Who

could have ever imagined the boom in mobile phones, for instance?

Their annual volume has doubled since 2001 to nearly one billion in

2005. Here, the innovations of Merck researchers played the same cru-

cial role as now in the development of LCD TVs. In 2005, already more

than 30 percent of all LCD TVs had screen diagonals of 30 to 39 inches

and this percentage will very quickly double.

Facing the challengesHow do we do this? Through many years of reliable and very close cooperation with our customers. Our researchers are thus kept well informed about customer expectations and consumer trends. This has been the key to our continued technology leadership and, for many years, also our global market leadership.

This close and successful cooperation also influenced the development of new technolo-gies. We only need to take a look at the last several years to illustrate this: At the begin-ning of the 1990s, new liquid crystals made the development of laptops possible, which suddenly made personal computers – which were just about 10 years old – portable and mobile. At the end of the 1990s, new liquid crystals made the development of flat monitors possible. These elegant monitors brought a drastic change to the working world – they are slimmer and lighter, consume less power and produce less heat than the bulky cathode ray tube monitors. So liquid crystals have really revolutionized the working world, have made many applica-tions possible in the first place, and have made communication portable and mobile. “Merck is inside!” means far more than this, however – it means fun! For who would want to do without their mobile phone, BlackBerry or MP3 player these days?

Liquid crystals exhibit characteristics

between those of perfect crystalline order

and the unstructured chaos of liquids.

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Moving home with your monitor is now just a matter of plugging it in:

For the student Marsha Haus, her 17-inch computer monitor is among

her most important possessions.


to the electronics used for one and the same application. Thus each of our products has to be completely customized according to the requirements of customers.

In developing new liquid crystal mixtures, the main focus is on further improving switch-ing times, power consumption and viewing angle dependency of contrast. This is what the experts at Merck are working on daily.

Chemistry for home cinema, SMS, chat room & Co.


LCs and LCD technology from Merck

They are electrically switchable organic molecules, which magic an SMS onto our mobile phone, display a chat room on our PC monitor, and provide us with a real home cinema experience on our superflat LCD television .

Modern displays only function thanks to the reliable work done by an extremely thin layer of liquid crystals on the inside. Liquid crystal molecules change their orientation when a small electric voltage is applied – they func-tion as optical switches. For every new LCD technology, new liquid crystals and liquid crystal mixtures with as yet unused or even unachieved combinations of properties are needed. New liquid crystal mixtures may also be needed, however, if there is just a change

Cholesteryl benzoate: the structural formula

of the “original liquid crystal”

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High-tech chemicals: Liquid crystals

Liquid crystals are typically elongated organic molecules having an uneven distribution of electrical charges along their axes (dipole) . This gives rise to a special physical char-acteristic to which liquid crystals owe their name: Between the crystalline and liquid phase they exhibit a further state of aggregation, namely the liquid crystalline or mesophase . In this phase the liquid crystal molecules are aligned parallel to each other but are able to rotate about their long axes . There are different types of molecular arrangement in liquid crystals: smectic, nematic or cholesteric . Liquid crystals of the nematic type are of by far the greatest importance technically speaking .

A modern TN flat screen consists of several layers . A very thin layer of a liquid crystal mixture is sandwiched between two thin glass plates coated with transparent elec-trodes and is twisted by 90 degrees . Polarizers are situated on the outside of the glass plates, on one side are color filters on both sides are transparent electrodes and orientation layers . The thin film of liquid crystal material – of about four to eight micrometers in thickness – is the heart of every LC display: In combination with polarizers, it acts as a “light valve” for the backlight .

The first polarizer allows light of only a particular plane of oscillation to pass through it and then the light reaches the liquid crystal . The applied voltage orients the molecules perpendicular to the glass plates . The light cannot follow this new orientation and is unable to pass through the second polarizing filter that isrotated by 90 degrees to the first one . There-fore the pixel is black . On removal of the voltage, the molecules return to their original twisted arrangement . The light follows this twist and now is able to pass through the second polarizer: The pixel is now bright . An LCD contains many such optical switches or so-called pixels,

which can be addressed individually . The pattern of bright and dark pixels produces the image . As there is almost no current flow in the LCD, this type of display is extremely energy-efficient .

They are used in electro-optic display systems: LC displays . In order to achieve a combination of properties suited for a particular application, liquid crystal mixtures are needed that may consist of 10, 20 – in individual cases of as many as 30 or more – single liquid crystal substances .


smectic nematic liquidcrystalline

liquid crystalline

polarizer

TFT

orientation film

orientation film

indium tin oxide(ITO) layer

color filter

glass substrate

liquid crystal

unpolarized white light

glass substrate

polarizer

ITO layer

Twisted nematic cell LC displays

Structure of the different layers of an LC display

shown in cross-section of a single pixel (TN cell,

twisted nematic cell)

LCD TVs will soon be in many living roomsThrough intensive research and cooperation with partners, Merck succeeded in developing the VA (Vertical Alignment) technology, where specially developed substrates are used in the cell, which force the liquid crystal molecules into different angles of tilt to the substrate surface. This gives viewing angles exceed-ing 170° without impairment of contrast or grayscale and without color distortion – in both horizontal and vertical direction. So it is a technology that precisely fits the needs of a flat LCD television screen. One former problem was the fact that conventional liquid crystals could not be used on account of their distribution of electrical charge. The solution to this were the laterally fluorinated liquid crystals developed by Merck. Superfluorinated liquid crystals were then a further development of these, and for the pioneering research on this totally new generation of liquid crystals for VA technology Merck researchers were awarded the German Future Prize in 2003.


The winning team of the German Future Prize 2003

for pioneering research: Dr. Kazuaki Tarumi,

Dr. Melanie Klasen-Memmer and Dr. Matthias Bremer

developed new liquid crystal mixtures for large-

screen LCD televisions.

With this new generation of liquid crystals, display manufacturers are now able to carry out series production of large LCDs for televi-sions with VA technology, having a higher resolution, a lighter weight, faster switching times – which are now already far below ten milliseconds – and a wide viewing angle – of up to nearly 180°.

Optrex in Babenhausen, Germany, is one of the

few display manufacturers specializing in small

displays that are customized for the automotive

industry. Top quality is ensured by automated

coating and adhesion of the liquid crystal cells by

cleanroom technology.

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Merck liquid crystals make high-quality color

displays for mobile phones possible – thus state-

of-the-art mobile communication has become

more than just short message service (SMS):

it means fun for Marsha Haus.

In addition to VA technology, In-Plane Switch-ing technology (IPS), likewise developed by Merck together with a partner, is also of great interest for large-format displays. In IPS, both electrodes are located on the same glass plate and, when switched, the liquid crystal mol-ecules move only in one plane, parallel to the plate. This means that the observer’s viewpoint is always at the same angle to the molecular axis, enabling a high contrast ratio and a wide symmetrical viewing angle. The result is LCDs with a horizontal and vertical viewing angle of up to 176°. At the world's largest computer and electronics equipment fair, the CeBIT 2006, the first prototype of an LCD television having a screen diagonal of 2.5 meters (100 inches) was shown. In combination with the high-resolu-tion digital television, which has already been introduced in the United States and Japan, this will offer the viewer a real home cinema experience.

We are the leading manufacturer of LC mix-tures used in both of these major technolo-gies – VA and IPS – which are applied in the production of large-format displays.

Positive forecastsIndependent market research institutes forecast a real run on LCD televisions in the coming years – comparable only with the boom in mobile phones. An average annual growth rate of 10 percent up to 2009 for the LCD industry revenues in general and of more than 25 per-cent for the LCD television market is expected. Merck had largely anticipated that success with the vision of the television on the wall and the firm belief in being able to effectively con-tribute to it: in order to increase our delivery capability and our competitiveness, over recent years we invested more than 250 million euros in Darmstadt and Gernsheim in the expansion of our LC production – allowing us to continu-ously adapt our production capacity for single substances to the demand. Through further major investments in Asia, the Liquid Crystals division can also meet a rising demand for liquid crystal mixtures.

Easy-to-produce, high-performance OLED

signage – extremely thin and light.

Novel polymers for fast and effi cient

transistor printing processes.

Printable polymer materials for smart

electronic products.

Printable polymers for light, fl exible

solar cells .

Effi cient and environmentally friendly structuring

tools for photovoltaics (solar cells) and displays.

Innovative LC materials for superfast and high-per-

formance displays used in LCD TVs, monitors, mobile

phones, notebooks, PDAs, automotive applications, etc.

Superior materials used in optical fi lms for enhanced

image quality of displays.

Conjugated polymers and small molecules used in

advanced Organic Light-Emitting Diodes (OLEDs).

Thin, fl exible, energy-saving, high-value OLED lighting

elements.

OLED components for inspiring and unique light

ideas for lifestyle design.


Toxicology and ecotoxicology of LCs – Legislation on disposal of LCDs

Liquid crystals from Merck and other manufac-turers are neither acutely toxic nor mutagenic, nor are they suspected to be carcinogenic . They are also not harmful to aquatic organisms and show only a very low toxicological and ecotoxico-logical potential .

Together with other LC producers, Merck has generally committed itself to introduce to the market only liquid crystals that are toxicologically and ecotoxicologically safe .

The production and disposal of LCDs are also unprob-lematic as they contain no harmful substances, have long life cycles and are capable of recovery and recy-cling . In addition, once removed from their housing, used LCDs can be classifi ed as waste not requiring special supervision, which is a decisive advantage for their transport, recovery and recycling . In 2004, Merck developed recovery processes for LCDs, which permit an effective, legally compliant and economical means of recovery .

Several product families – A unifying logo

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Challenge for logistics and communications – LCDs help these processes to run smoothly. A total

of 83 million tons or 8.1 million containers (TEUs) were discharged and loaded in the container

facilities of the Port of Hamburg, Germany, in 2005.


Team solutions wanted


other specialists at Merck are working on these challenges. Although outstanding contribu-tions have been made by brilliant individual ideas and personalities, the development of new high-tech chemicals and innovative technolog-ical solutions is ultimately a team achievement. That is why Merck sources top talents from all over the world in order to combine their inter-disciplinary experience, knowledge and skills to the best benefit of its customers.

Globalized research and online communica-tions set the pace for change today – also when it comes to technological innovations in the electronics industry. New technological solu-tions are becoming possible and are turned into mass products ever faster, particularly in the entertainment and telecommunica-tion sector. Innovation and market cycles are becoming ever shorter. And this also demands ever shorter development times for liquid crystals and liquid crystal mixtures. Therefore, interdisciplinary and international teams of chemists, physicists, process engineers and

Power-saving flat panel televisions have only recently become reality – and Merck researchers are now already looking for solutions to tomorrow’s needs: The lady on the chocolate wrapping in the supermarket shelf is winking at the customer from a flat panel display, the contents of the advertising display in the underground station changes with the time of day, and the flow of goods in the logistics sector communicate with each other and organize themselves – all this could soon become reality . And Merck supplies the chemistry for it .

Customer-centric research & development

Tomorrow’s televisions will be bigger – and will

also make more communication visible – net-

worked with a variety of sources, televisions will

also become a display instrument for children’s

school timetables, refrigerator contents and

music downloads. James Ke from display manu-

facturer AUO explains customers’ needs to

LC salesman Joseph Chen from Merck Taiwan.

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in order to identify – and potentially further develop – future-oriented technical projects on site. Thus problems and needs can be addressed directly as they arise through open communi-cation with one another.

Merck not only cooperates closely with its cus-tomers, but also with universities and scientific institutions worldwide. For we operate glob-ally not only on a business level but also on a research level. This is essential for perform-ing basic chemical and physical research that is closely oriented to the requirements of the particular application, and for transferring the results obtained to production as fast as pos-sible – in other words, keeping up with the pace of globalization.

To keep ahead of – or at least keep up with – its customers’ needs and desires, Merck has always had a customer-centric approach. This starts right from research and development, where we also constantly work in close collaboration with our customers. The scope of our coopera-tion ranges from joint discussions through to exchange of experts with our research site in Chilworth, Southampton, United Kingdom,

Owain Parri (front) and Don Graham

test new optical films for their

properties in Merck's laboratories at

Chilworth Science Center.

Local production and applications development – in 2002,

Merck opened its LC mixture production facility in South

Korea.


Global networking of researchThe backbone and cradle of Merck’s liquid crystal research and development are the company headquarters in Darmstadt, thirty kilometers south of Frankfurt am Main, Germany. In collaboration with colleagues at Chilworth Science Centre and at Merck sites in Asia, the researchers in Darmstadt are work-ing not only on new liquid crystals. Merck’s research also extends to the electro-optic effect and further development of LCDs.

Based on molecular modeling, Merck develops new liquid crystal molecules with the required properties. In 2005, approximately 600 new single compounds were discovered, from which more than 8,500 test LC mixtures were pro-duced – and this trend is on the increase.

The LCs and LC mixtures thus produced are tested for their suitability by analyzing physi-cal and electro-optical parameters, which can only be determined precisely in an LC cell. For that purpose, Merck has set up its own cell technology laboratories at its sites in Darmstadt and Japan, where LCDs are produced in small series under cleanroom conditions. In these laboratories, suitability tests can be carried out on new mixtures and customers’ issues relating to application technology can be solved. Merck researchers do not limit their work to research and development of new liquid crystals, how-ever, but also develop innovative displays in cooperation with display manufacturers.

Semiconductor polymers for new applicationsAt Chilworth Science Center Merck is also active in the still young field of polymer electronics. Merck scientists are currently researching new semiconductor polymers, for example, which are suitable for use in low-cost integrated circuits taking their place alongside silicon technology. There is an unforeseeably wide variety of application possibilities for polymer electronics: from fake-proof tablet packages, electronic luggage labels, advertising displays and electronic greeting cards through to food product information such as shelf-life, freshness, origin, etc. While the main focus is on capacity and miniaturization with silicon chips, here the need is for fast development and efficient mass production – at a low price. Whereas a silicon-based electronic tag costs approximately 0.5 euros, a polymer-based tag would only cost 0.1 euros. Organic and partly inorganic materials are the basis for this new RFID (Radio Frequency Identification) technol-ogy, as well as related technologies.

Peter Best performs a micro-

scopic examination – including

systematic data recording – of

newly synthesized liquid crystals

in Darmstadt.

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Electronics of a passive-matrix display used

for small LCDs – although they have limited

resolution, fast and fancy electronic compo-

nents are necessary.

Merck researchers in Southampton have dis-covered polyalkylidene fluorenes as semicon-ductor polymers having excellent electronic properties. They have also developed reactive mesogens whose liquid-crystalline properties and high charge-carrier mobility make them also particularly suitable for use in polymer electronics. In the future, these polymer mate-rials are intended to be applied by printing to the carrier material. This would enable fast, simple and low-cost mass production of chips on the basis of polymer electronics.

Elisabeth Meyer investigates physical properties of new

LC substances in a strong magnetic field.

Liquid crystal research

Research in the Liquid Crystals division focuses on developing customized new liquid crystals and liquid crystal mixtures with the required properties (switching times, viewing angle dependency, etc .) . Synthesis robots are often used in order to speed up the develop-ment of new single LC substances .

Our researchers are also working with a full range of different coating materials, aiming to further improve the optical properties of screens . Merck is also active in the still young field of polymer electronics and is research-ing organic semiconductors for high-tech applications such as RFID (Radio Frequency Identification) chips as well as materials for OLEDs (Organic Light-Emitting Diodes) for use in displays and light sources .


Liquid crystal production

Merck’s liquid crystal production principally takes place in Darmstadt and Gernsheim, Germany . The synthesis of single LC sub-stances is a highly complex, usually multi-step process, in which Merck chemists are particularly well versed .

Some of these synthesis procedures can only be carried out under extreme conditions – for example, at very low temperatures of up to minus 100 degrees Celsius .

Thomas Queste works at Central Process

Development in Darmstadt, which is respon-

sible for production process scale-ups of the

latest developments from the laboratory.

Merck not only utilizes progress in the field of analysis

for sample controls in production – employees in the LC

division, like Jeanette David, are also involved in new

approaches to detecting potential impurities – here with

fractionated liquid chromatography .

Research for printable RFID chipsIn addition, Merck and the Technical Univer-sity of Darmstadt established a joint research laboratory in 2006, which conducts research on innovative inorganic composite materials. The initial goal is to develop printable RFID chips as a replacement for the standard bar codes on goods. Individual information, such as manufacturer’s data and shelf-life, will be stored on the RFID chip – enabling touchless identification of the product by resonance. “Intelligent goods flows” will revolutionize pricing, logistics and inventories of the future. Although RFID chips are still too expensive for use in supermarkets, once they become print-able for a reasonable price they are certain to achieve triumphant success.

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A bistro table, designed by and manufactured for artist

Ingo Maurer, with OLED lighting panels from Merck.


On our venture for innovations


e.g. special video games. They inherently have a viewing angle of more than 160° and could reduce the price of flat screens overall.

OLED-based flat panel displaysOLED displays have in principle a relatively simple structure: They consist of a thin film of organic material, measuring only approximate-ly 100 to maximally 200 nanometers in thick-ness, which is sandwiched between a metal cathode and a transparent anode – normally of indium tin oxide. Glass or a flexible, transpar-ent substrate serves as carrier material. Due to their flat structure, OLED-based displays open up a new world of creative options. These include flexible displays, which could well even be rolled up to give us the full weekend issue of our daily newspaper as a flexible e-paper.

In our constant search for new business fields and technology platforms for new markets, as market leader in liquid crystals we have resolved to invest in further future-oriented technologies, for example for displays. Thus, Merck’s LC division acquired two European enterprises in the area of organic light-emit-ting diodes (OLEDs) in 2005.

OLEDs contain organic semiconductor materi-als, which, under the influence of electrical current, emit light and are therefore self-illu-minating. They can be used for lighting and backlighting of large surfaces and are suitable for display and light source applications.

Merck is one of today’s leading suppliers of materials for OLEDs. Highly specialized small molecules and conjugated polymers are already among the materials offered. These can be used, for example, to produce innovative dis-plays. Present-day conventional screens have a number of disadvantages. “Power-hungry” cathode ray tubes, for example, are bulky and heavy and produce a great deal of heat. TFT monitors, on the other hand, are flat, elegant and lighter in weight – but still consume a significant amount of power for backlighting and do not produce perfect images from any viewing angle. OLED-based displays are differ-ent. They are highly efficient – in other words, the display consumes less power and have long usage times, which is of special interest for mobile applications. Their low switching times permit even faster picture sequences for

As the story of liquid crystals at Merck has shown: Research and early orientation to the markets of tomorrow or even beyond can bring their rewards .

Merck’s OLED activities

Atmospheric lighting is an important element of design for today’s interior designers

catering to “places to be” – OLEDs are suitable as diffuse light sources.

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Further future-oriented OLED applications could also be automotive head-up displays, which project important infor-mation onto the driver’s

windshield, such as vehicle speed, distance to the vehicle in front,

or location of the nearest parking facilities. But before all this becomes reality, Merck research-ers have a lot of work ahead of them. There are still a few problems needing to be solved, such

as the cathode’s sensitivity to oxygen and moisture, as well as the lifetime of some OLED materials. For that reason, OLED displays must be encapsulated to protect them against oxygen and moisture – and

this is presently still an obstacle to the production of flexible OLED displays. First

products with nonflexible displays containing Merck’s OLED materials came onto the market in 2002. With our commitment in the area of OLEDs for flexible displays at Merck OLED Materials GmbH, based at the Höchst Industrial Park in Frankfurt, Germany, we are making use of the leverage potential provided by our leading market and research position for early development of this alternative and indeed promising technology. In the OLED display industry the market volume is expected to be approximately five billion euros in 2009 – and Merck wants to have a part in it.

On the way to a bright futureOLED materials from Merck could also acquire importance in the lighting industry. White OLEDs are suitable as energy-efficient light sources for a wide variety of applications: If attached to the ceiling of the living room, for example, their diffuse light could give the room more depth and a special atmosphere. Besides providing for pleasant room lighting, OLEDs can also be used for purely functional lighting applications, such as LCD backlight-ing. In addition, possibilities are being dis-cussed for their use in the automotive industry as well as in advertising displays and signage. And all this with far less power consump-tion than a regular light bulb. Our researchers at Merck Organic Lighting Technologies in Mainz, Germany, are studying the challenges this places on the materials – and thus leading Merck forward to a bright future.

Two-color OLED displays

provide clear information

on many MP3 players.

Like many managers, pharmaceutical sales

representatives Armando Santoyo, Thalia

Bernal und Maria del Carmen Coronado from

Merck in Mexico rely on mobile communi-

cation. Notebooks may work longer once

more energy-saving backlight sources are

available.



OLEDs are organic, light-emitting diodes composed of organic semiconductor materials .

Semiconductors are materials whose electrical conductiv-ity is intermediate between that of metals and insulators . In a semiconductor, wide bands of allowed energy states are available to the electrons, which are separated from each other by small energy gaps called forbidden zones . In electri-cal excitation, electrons are promoted from the highest occupied molecular orbital (HOMO) to the lowest unoccu-pied molecular orbital (LUMO) . If electrons fall back from the LUMO to the HOMO level, the excitation energy is released in the form of photons (electroluminescence) .

The structure of an OLED display is in principle quite simple: The polymer fi lm is sandwiched between a metal cathode and a transparent anode (normally of indium tin oxide) . This structure is additionally encapsulated for protection . Electrical luminescence is produced when electrons from the cathode travel into the organic fi lm where they occupy the LUMO of the active layer . On the anode side, electrons are transferred from the HOMO of the organic fi lm into the anode . This results in a release of photon energy dependent on the HOMO-LUMO gap . OLED displays are illuminated in different colors depending on the size of the HOMO-LUMO gap . Flat panel displays emitting an overall white light can be produced from red, green and blue OLEDs .

White light emitting OLEDs can be used in the lighting industry as energy-effi cient fl at panel light sources .

OLEDs

transparent anode

charge carriertransport layer

glass substrate

emitting layer

metal cathode

voltage

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The Liquid Crystals division is one of Merck’s core businesses and is the global leader in this market. Through innovation and entrepreneur-ial thinking Merck wants to remain number one and create unique benefits for its customers.

Merck achieves its success in the liquid crystal business due not least to its employees’ special skills and expertise. This intellectual capi-tal must be secured by protecting inventions through patents, as the intellectual property of Merck, and by pursuing a clear patent strategy.

Merck is currently in the situation of owning more than 2,500 patents worldwide in the field of liquid crystals, their mixtures and applica-tions. Each year, about 100 new patents are added to this patent portfolio. Through acquisi-tions in the area of OLED materials and appli-cations, Merck has been able to additionally expand its portfolio by nearly 1,000 new patents – for OLED materials, devices and organic thin-film electronics.

Our broad patent coverage enables us to supply customer-specific solutions. This can be further enhanced through cross-licensing with part-ners, thus strengthening the market position of our customers. In addition, our broad patent position also protects our customers from imita-tion products of undefined quality. Patents that Merck does not want to use itself additionally contribute to revenue through licensing and royalties.

Consolidating our strong market position

Experience, knowledge, skills and original ideas alone are not sufficient for sustainable success . Effective protection of intellectual property is what it takes to make a success of things . For that reason, Merck has always pursued an active patent strategy .

Active patent strategy

China is an important market of the future for LCD

televisions – the Chou family is curious to find out all

the new features of the television at a department

store in Shanghai.


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Focus on customer proximity

Focus on customer proximity

Proximity is essential to cooperation – and since eastern Asia accounts for 95 percent of the world’s LCD production, Merck already began internationalizing its LC activities almost thirty years ago . Research and development centers as well as LC mixture production sites of Merck are today located in Japan, South Korea and Taiwan .

LC locations in Asia

Customers’ needs are not the same everywhere: Today’s taxi customers in Taipeh wish to

watch television while being driven. A strong customer focus is crucial to Merck´s success in

meeting the needs of the display industry.

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Global growth requires local partnership. We have always worked together very closely with our customers – for our mutual benefit in achieving joint success – for example in the area of applications development. We are therefore able to very quickly respond to our customers’ desires and to promptly deliver the liquid crystal mixtures they require. This is absolutely crucial to operating in the global market.

Guaranteed quality

For over 300 years, the name Merck has been syn-onymous with high-purity products . Merck owes its very high reputation for all its products and services to its commitment to quality .


In the reliability laboratory, Oliver Heppert and Thomas

Mergner ensure that new LC mixtures meet the required

specifications within very small tolerances.

Since the life cycle of liquid crystal displays is dependent, among others, on the purity of the substances used, Merck’s liquid crystals are shipped only as high-purity substances with extremely high electrical resistivity and after suc-cessful reliability and operational safety tests in our reliability laboratories for LC mixtures .

All Merck‘s LC locations worldwide have naturally received ISO 9001 certification . In addition, the safety standards for employees, environment and facilities at all sites are certified according to the globally recognized environmental management standard ISO 14001 .

International LC activitiesOur subsidiary Merck Advanced Technolo-gies Ltd. (MAT) is located some 80 kilometers from Seoul on the new West Coast Highway. From our Poseung site in Gyeonggi Province we maintain close contact with South Korea’s dynamically developing display industry. Merck’s Liquid Crystal Center at MAT performs its own LC mixture research, works under a quality control system and produces LC mixtures for TFT applications. The cleanroom laboratory facility for LCD technology not only produces LC mixtures but also finds solutions to customers’ problems relating to applica-tion technology. The Chemicals Distribution Center ensures around-the-clock supplies of LC mixtures for our customers in South Korea. Merck will further expand this location – the investment of approximately ten million euros has already been approved.

Local production and applications development –

in December 2005, Merck opened a new

service center in Kuan Yin Industrial Park

in Taoyuan, Taiwan.

Gernsheim, Germany is a major production

site for liquid crystals. Meeting the high demand –

Alfred-Otto Draut and Roland Heidrich belong

to a worldwide team of committed employees.

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Merck Display Technologies Ltd. (MDT) is locat-ed in Kuan Yin Industrial Park in Taoyuan, Taiwan. The Liquid Crystal Center of MDT Tai-wan supplies the Taiwanese flat panel display industry with LC mixtures for TFT applications. It has already gained a high reputation with its customers since it was established. Merck invested over 20 million euros in setting up and commissioning a new LC mixture produc-tion plant in Taoyuan at the end of 2005. This was just at the right time in view of Taiwan’s high-growth LCD market. Merck’s LC experts are able to respond even faster, work even more customer-oriented and thus provide the best possible locally based service to customers.

Customer proximity is a priorityMerck’s LC location in Japan also provides tailored solutions for customers. In Atsugi, between Tokyo and Yokohama at the foot of the Tanzawa mountains, we have been carrying out LC research, mixture development and production as well as analysis for almost thirty years.

As is customary at Merck, our experts in Asia collaborate closely with university scien-tists. The high scientific competence of our colleagues in Japan, for example, has been recognized by, among others, the Japanese Ministry of Economy, Trade and Industry (METI). Several years ago, Merck was the only non-Japanese company to participate in vari-ous joint research projects. Also at the present time, Merck Japan is cooperating again with METI on a number of research projects in the field of liquid crystal displays, including further improvement of the UV stability of LC mixtures.

Merck is well positioned to meet the strong growth of the Chinese economy. Since its foun-dation in 2002, Merck Ltd., Hong Kong, coordi-nates the LC business for China with additional offices set up in Shanghai and Beijing. Our colleagues in China can naturally draw on the long-standing experience of Merck’s other subsidiaries in Asia.

LC Competence Network

Chilworth/Southampton (UK)Chemical Researchfor Polymer Materialsand Optical Films

Darmstadt/Gernsheim (Germany)Chemical ResearchPhysical ResearchEngineering ResearchMixture DevelopmentComponents ProductionMixture Production

Gyeonggi (South Korea)Application Lab

Mixture DevelopmentMixture Production

Taoyuan (Taiwan) Application Lab

Mixture Production

Atsugi (Japan)Engineering LabApplication LabMixture DevelopmentMixture Production

Sue Wong in Hong Kong enjoys her personal

favorites stored on her MP3 player –an LCD

allows fast access. The music format MP3 –

MPEG Audio Layer 3 – was invented by scien-

tists from the German Fraunhofer Society.

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Rooted in Darmstadt

We are talking about a strong company: Merck KGaA, with around 29,000 employees worldwide, manufac-tures high-value pharmaceutical and chemical products in 54 countries . Its set of guiding principles: sus-tainability and customer focus, fairness and transparency, responsibility for employees, business associates, shareholders and owners, environment and community .

Company profile of Merck KGaA

Merck in Darmstadt – The Pützer Tower (lower right of photo) is a building of notable historic interest,

while the liquid crystal production facilities (in the two buildings in the upper left of photo) are a notable

modern-day investment.


Rooted in Darmstadt

The roots of Merck KGaA reach back to the 17th century. Friedrich Jacob Merck purchased the “Angel Pharmacy” (Engel-Apotheke) in Darmstadt in 1668. Thus Merck is the oldest pharmaceutical-chemical company in the world. From the early beginnings in the pharmacy labora-tory evolved a chemical-pharmaceu-tical factory. Right from the start, the guiding principle has always been the especially high purity of its preparations and products.

At the present day, Merck – with its corporate headquarters in Darmstadt – is a global group of companies operating in 54 countries and sup-plying high-quality pharmaceutical and chemical products. The Merck Group generated sales of nearly six billion euros in 2005. Merck bundles its operating activities under the umbrella of Merck KGaA, in which the Merck family holds an indirect interest of 73 %, while the remain-ing 27 % is publicly traded. The former U.S. subsidiary, Merck & Co., has been completely economically independent of the Merck Group since 1917.

Our Pharmaceuticals business sector comprises prescription and primarily patented drugs, generics for cost-efficient basic health care and consumer health care products including, for example, Cebion, Mul-tibionta and the nasal spray Nasivin. The main therapeutic areas include

oncology, diabetes and cardiovascu-lar diseases. The Chemicals business sector focus-es on high-grade chemical products for high-tech applications in research and industry. The real guarantors of success are the more than 29,000 people working for the Merck Group worldwide, with their high level of commitment and competence, who are dedicated to the benefit of our customers and who shape, change and take the company forward.

Merck thinks and acts beyond the next quarterly results – Merck assumes responsibility for the next generation. This becomes particular-ly clear if we take a look at the liquid crystal business: Its origins go back over 100 years. Today, liquid crystal displays make communication with brilliant pictures possible: in mobile phones, computer monitors and flat panel televisions.

More information about Merck can be found on the Web at www .merck .de and in the following publications (in German and English), which you may read or order online at www .publications .merck .de .

· Merck transparent (also available in French and Spanish)· Annual Report· Responsibility for Employees, the Environment and the Community 2005 Report· Experience the New (corporate film and further information on DVD)· “Was der Mensch thun kann …” History of Merck – The World’s Oldest Pharmaceutical and Chemical Company· TopTopics Oncology – Merck Breaks New Ground in Cancer Therapy· TopTopics CardioMetabolic Care – Integrated Management of Cardio- vascular and Metabolic Diseases· Chemistry with a Future – A Glimpse of Research at Merck· The History of the Future – 100 Years of Liquid Crystals at Merck· Special Effect Pigments – A New Colour Dimension· A Strong Site – A Global Player Rooted in Darmstadt

You can order these publications from Corporate Communications, Merck KGaA, 64271 Darmstadt, Germany, or via the following e-mail address: corpcom@merck .de .

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Contacts to Merck’s LC expertsGermanyMerck KGaALC Marketing & Sales Ms. Silke Endres Frankfurter Str. 25064293 DarmstadtPhone: +49 (0)61 51/ 72-29 61 Fax: +49 (0)61 51/ 72-31 32 [email protected]

Merck OLED Materials GmbHMs. Antje SchillingIndustriepark Höchst, F 82165926 Frankfurt/MainTel: +49 (0)69/ 305-13705Fax: +49 (0)69/ [email protected]

China Merck Ltd. Ms. Emma ChuNo. 3 Lockhart Road, 29th FloorWanchai, HongKongP. R. China

Phone: +852-2376-3878Fax: [email protected]

JapanMerck Ltd.Ms. Kaoru TakahashiARCO Tower, 5F 8-1, Shimomeguro 1-chome Meguro-ku Tokyo 153-8927 Phone: +813-5434-4909 Fax: [email protected]

North AmericaEMD Chemicals, Inc.An Affiliate of Merck KGaA, Darmstadt GermanyMr. Dieter Schroth7 Skyline DriveHawthorne, New York 10532


Phone: + 914-592-4660 Ext. 780Fax: + [email protected]

South KoreaMerck Ltd.Ms. Yeon-Jung KimHaesung-2-Bldg., 15th Floor 942-10, Daechi-dong, Kangnam-kuSeoul Phone: +822-2185-3892 Fax: +822-2185-3880 [email protected]

TaiwanMerck Display Technologies Ltd.Ms. Lesly ChenNo. 33-1, Ching Chien 1st Road Kuan Yin Industrial Park Taoyuan / Taiwan R.O.C.Phone: +8863-483-6521 Ext. 2204Fax: [email protected]

Published in June 2006 byMerck KGaA Corporate CommunicationsFrankfurter Straße 25064293 Darmstadt Fax: 06151 / 72–8793 E-mail: [email protected] www.merck.de

Text: Rent-a-Pen® Communication Services, Neuss

Editing:Dr. Werner Becker (Liquid Crystals division), Dr. Tobias Engel (Corporate Communications)

English translation:Diane Davies, Merck KGaA

W.8

40.4

8535

0606Merck employees from Marketing & Sales and

Customer Services in Tokyo maintain direct

contact with our customers in Japan at all times.

Note:You will find further, more detailed information in our constantly updated collection of Internet links at www.liquidcrystals.merck.de.

An overview of liquid crystal mix-tures and other display materials offered by Merck is available upon request from Merck KGaA Darm-stadt, LC Marketing & Sales.

Our TopTopics brochure series also deals with other topics of inter-est concerning health and chemi-cal products, as well as Merck’s research. If you are interested or have any questions, please feel free to contact Corporate Communica-tions via [email protected].

Design:UNIT Werbeagentur, Weinheim

Graphics: Thomas Braun, NeckargemündCapCom, Darmstadt (p. 12 bottom)

Photos: Marco Moog, HamburgBltzwerk, Mühltal (p. 7, 24)Eva Speith, Darmstadt (p. 9)Optrex, Babenhausen (p. 13, 20)Hafen Hamburg Marketing e.V./Achim Sperber (p. 16)Ingo Maurer GmbH, München (p. 23)Trek Star, Lorsch (p. 24)Hagenfilm, Frankfurt (p. 30)

Photo models (cover):Sigrid, Emil and Anton Engel

Printing:Kuthal, Mainaschaff, Germany

Contacts to Merck’s LC experts

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