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Target Market

Touchtop Technologies, Inc.

TARGET MARKET

Only 11 firms make up TouchTop Technologies' target market.  However, these firms account for nearly 90% of the LCD market.  All 11 firms are in a desperate search for the next generation display technology.  However, the continued and growing  investment in R&D and additional AMLCD capacity are all clear signs that none of these companies have found a worthy successor to AMLCD.  TouchTop Technologies has segmented the market into two categories: manufacturers that have invested in full-scale production facilities for next generation displays and those that have not. 

Only two firms, Optrexe and Sharpe fall into the category of companies that have invested in full-scale production facilities for next generation displays.  Sharpe, using technology developed by Infinite Gain, Inc., began construction in Korea on a Field Emmission Display production plant in early August of 1995.  In a clear sign that Sharpe may have jumped the gun, the plant was initially budgeted at $800 Million and to date has cost the firm over a Billion dollars, with completion scheduled for late 1997.  Sharpe has acknowledged that many of the cost overruns are the products of manufacturing difficulties discovered at its pilot facility.  Optrexe's investment is in a plant that will manufacture next generation AMLCDs.  The new AMLCDs produced by the plant use an in-plane switching technique that significantly increases the viewing angle.  However, as with similar techniques, the costs, in addition to manufacturing, include increased power consumption and reduced speed.

The Market 10

TouchTop Technologies, Inc.

 

The other 9 top LCD producers have not fully committed to next generation technologies by way of new plant construction. These firms are the primary targets of TouchTop Technologies, Inc.   One of the largest, NEEC, has committed to executing a license and royalty agreement upon TouchTop's delivery of a fully functioning prototype that verifies performance claims.  Additionally, TouchTop's CEO has coordinated efforts with key NEEC manufacturing management to develop cost estimates, define the process architecture, and move towards detailed design for conversion of existing NEEC AMLCD manufacturing facilities.  Under the NEEC agreement, licenses with other producers could be executed under the condition that production of TouchTop's LEDCD based products commenced no sooner than 24 months following NEEC's first production run.

PROSPECT DISPERSION

The nine LCD producers TouchTop Technologies has targeted are clearly concentrated in Far East Asia and Japan.  Japan alone accounts for over 41% of all LCD production, with Taiwan and Hong Kong tied for second with 20% each.  Having managed design and ramp up of LCD production plants in Korea, Taiwan and Japan, Mr. Weinstein has first hand knowledge of the nuances of commercial decision making in these areas.  Equally important, Mr. Weinstein has developed strong relationships, as a trusted advisor and friend, with 7 of the nine targets TouchTop is pursuing. 

The Market 11.

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