SINGULUS TECHNOLOGIES New Headquarters Facility Dedicated in July 2000
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1 N E W S SINGULUS TECHNOLOGIES ISSUE XVI : NOVEMBER 2000, NEWS MAGAZINE FOR OUR BUSINESS FRIENDS N E W S Smart Solutions to Drive the Future SINGULUS TECHNOLOGIES New Headquarters Facility Dedicated in July 2000 SINGULUS TECHNOLOGIES dedicated its new corporate headquarters at Kahl/Main, Germany, on 27 July, The move to the new facility follows the February, 1999, decision to unite operations of four assembly plants at scattered locations in Germany s Rhine-Main area under one single roof at Kahl/Main. Construction of the new administration and manufacturing facility was started four months later. The all-glass architectural design is modeled on similar facilities of the semiconductor industry in Silicon Valley. Glassed-in areas for an abundance of natural lighting and open spaces are intended to promote creativity, free flow of communication and teamwork among employees who represent the life-blood of every high-tech company.
2 All together, 14,000 sq.m. are devoted to offices, manufacturing and logistics areas equipped with the latest state technologies. The new facility, which involved a total investment of DM 33 million, was built on a plot of 25,000sq.m. which was bought by the company. Purchase options for more land will provide sufficient space for future expansions. Although all of entire company s offices had not moved into the new corporate headquarters facility until late June, all manufacturing operations were already up and running at full capacity by May. Company employees, prominent state and local politicians, as well as invited guests from the business and media world were present at the formal dedication ceremony on 27 July CEO Roland Lacher and Minister of Bavaria State Dr. Erwin Huber That event was attended by 150 invited guests and included a series of lectures on the latest advances in the field of CD/CD-R/DVDreplication technologies. It was particularily highlighted by the company s first presentation of the new MODULUS - Multilayer Metallizer for coating all formats of ReWritable CD and DVD. The new MODULUS has been specially engineered to allow manufacturing both CD- RW and the new DVD-RW and DVD-RAM. The modular design offers various system configurations and includes as many as sixteen processing stations, depending upon the layer stack and the throughput requirements. A few days earlier, the company s customers and business associates had an opportunity to inspect the new all-glass facility in conjunction with an international symposium for Optical Discs Replication Technologies held on 24 July. The company followed up by presenting the new corporate headquarters to securities analysts and financial journalists on 28 July 2000.
3 SINGULUS TECHNOLOGIES has Opened New Optical Disc Training and Process Applications Centre in Asia! The opening of new Optical Disc Training and Process Applications Center for Asia is again another visual example of the SINGULUS TECHNOLOGIES commitment to our customers and the Optical Disc industry. We chose Penang Malaysia as the location to set up the facility, because it is geographically central to all of the Asia Pacific Region. We are conveniently located close to airports, shipping ports, major highways, hotels etc. Penang is also known as a holiday destination, so if time permits we will offer business with a little pleasure. Our training staff are locals, they speak most Asian languages and in many cases they have already established a good working relationship with our many and loyal customer base. The Penang facility was designed to provide the following customer services: l Customer and operator training l Customer demonstrations l In-house staff training l Higher skills development for - Process control and - Production optimization l Product environmental testing A variation of any of these subjects will be taught at anyone time.we also offer in conjunction with other equipment suppliers training in the following subjects: l Basic molding machine operation and maintenance l Basic mold maintenance l Polycarbonate operation and maintenance of PC dryers l Inline and offline disc inspection operation and equipment maintenance l General factory production flow l General factory cleanroom requirements Documentation on these subjects will be provided along with an audio visual presentations. KOREA The center is set up as an operating factory and will be fully manned at all times. We will maintain a cleanroom environment and normal production procedures will be used at all times within the equipment area. THAILAND TAIW AIWAN AN HONG KONG PHILIPPINES Our training program will be subject specific and include: l Basic compact disc technology l Inspection and quality assurance for CD and DVD l SKYLINE Duplex DVD5 production l SPACELINE DVD5, 10 and 9 production l SKYLINE upgrade options 80 mm CD, CDCard etc. MALAYSIA SINGAPORE INDONESIA AUSTRALIA SINGULUS TECHNOLOGIES Malaysia Sdn Bhd Level2, Unit 11B-14 PG, Int. Sport Arena (PISA) Jin Tun Awang, Relau Penang / Malaysia Tel. : Fax : singulus@tm.net.my
4 Market Introduction of New SINGULUS Multilayer MODULUS Metallizer The new MODULUS Metallizer Family from SINGULUS TECHNOLOGIES for all ReWritable Formats from CD-RW to DVD-RAM ReWritable CD/DVD formats are ready for mass production and are expected to give the optical disc industry the next boost. The difference of the various thin film layer stacks for CD-RW, DVD-RW and DVD-RAM plus the process variation from manufacturer to manufacturer pose an unprecentended challenge for suppliers of sputtering equipment. SINGULUS TECHNOLOGIES introduces the new MODULUS multilayer metallizer for all ReWritable CD and DVD, a completely new designed generation of optical media manufacturing systems. The ReWritable formats use the so called phase change technology with various layer stacks and different film materials. Individual customers have individual requirements for a particular layer stack structure. Therefore in the development phase of the multilayer metallizer SINGULUS TECHNOLOGIES opted for a totally modular design: modularity in the number of process stations and modularity in the configuration of the modules. The result is a family of modular metallizers, not a single purpose coating machine. Accordingly the name MODULUS has been coined. The new metallizer for sputter deposition employs the well field proven SMART CATHODE. In contrast to standard type magnetrons for sputtering deposition, the magnetic field of the SMART CATHODE is not static, but can be easily optimized by the operator for the specific inhouse process. MODULUS configuration for all RW and RAM applications: 5 MODULUS for R&D and pilot production 7 MODULUS for CD-RW 9 MODULUS for DVD-RW 11 MODULUS for DVD-RW 13 MODULUS for DVD-RAM 15 MODULUS for future applications Switching the production process to a new type of target material or changing the process conditions can be easily carried out without any hardware modification. Parameter settings for the magnetic field deflection coils need to be changed to reoptimize the sputter deposition. This flexibility is highly welcomed in the field of phase change technology, due to the need of optimizing target compositions for new media generations. In the new MODULUS multilayer metallizer this will be available for all sputtering processes, no matter whether DC, RF or reactive sputtering. The MODULUS family does include 6 different size systems from 6 to 16 process stations in increments of 2. With this broad program we handle any multilayer sputter deposition demand, starting from process development up to high pace production of all ReWritable media. DVD formats need improved substrate cooling in order to prevent thermal damage. Accordingly the MODULUS for DVD-RW production features 2 additional cooling stations compared to the CD-RW coater. A DVD-RAM is the high end format regarding layer design. All machines are downward compatible, which means that on larger machines one can produce the same formats. It even might be possible to reduce cycle time, due to the availability of more sputtering stations. In addition to these standard production type machines SINGULUS TECHNOLOGIES offers the multilayer MODULUS for R&D purposes to optimize individual deposition processes for 1:1 transfer to the production machine, and to develop future formats. Nobody knows today what layer stack will be required for future generations, but SINGULUS already has the machine to handle it. 13 MODULUS for DVD-RAM
5 RW and RAM Technologies - Cooperation Agreement between PIONEER and SINGULUS TECHNOLOGIES for Advancement of DVD-RW PIONEER Corp., Japan and SINGULUS TECHNOLOGIES have entered into a cooperation agreement for the optimization of the production process in DVD-RW manufacturing. introduced MODULUS system was adapted to the requirements of mass production and important production know-how for DVD- RW was transferred. PIONEER became the first company worldwide to provide an alternative to the conventional VHS recorder when it recently introduced a new DVD recorder to the public. The cooperatiopn agreement with SINGULUS TECHNOLOGIES resulted in a partnership for the development of mass production of DVD-RW (ReWritable optical data storage, e.g., recording TV programs for home video). As a result of the close cooperation with Pioneer, SINGULUS TECHNOLOGIES expects to attain a significant advantage over its competitors. The market introduction of the MODULUS multicathode metallizer as well as the development of a complete production system (replication line) for DVD-RW will now be markedly accelerated by back up of a full technology package. 5 MODULUS for R&D and pilot production The subject of the cooperation agreement is the optimization of the most important production step in the manufacturing of ReWritable DVDs: vacuum deposition. In collaboration with Pioneer, the coating process and production technology of the recently This will present SINGULUS with extremely interesting growth potential in the near future.
6 ATOGLAS / ATOFINA, Supplier of PMMA, Started up their SPACELINE Objective: boost their penetration of OROGLAS VOD-100 in the optical disc market. Oroglas VOD-100 resin offers an attractive balance of properties for DVD substrates. ATOGLAS, a subsidiary of the new chemical company ATOFINA, launched last year a new acrylic resin under the name OROGLAS VOD100 especially formulated for the replication of DVD. It offers several processing and performance advantages over commonly used substrate material. OROGLAS can be a real alternative now and even more so in the future. ATOGLAS is the world s largest producer of acrylic molding and extrusion resins. The PMMA resins are currently manufactured at sites in Italy, USA and Korea. Due to its connections with chemical activities of Total, Petrofina and Elf, the company has not only customer support laboratories near the plants but also powerful research and development centers. The SPACELINE will be installed in one of this centers in France. This DVD equipment has been purchased for three main reasons: l l l Demonstrate replicators the production feasebility of OROGLAS VOD100 for DVD 5, 9... Evaluate improved PMMA considering high technical specifications Prove that the acrylic resin is the solution for new DVD formats (DVD- ReWritable, DVD-high density...). SINGULUS TECHNOLOGIES will support ATOGLAS in these development activities by providing technical assistance and process design required for the new materials. OROGLAS VOD-100 acrylic resin offers outstanding optical properties that are largely independent of processing conditions but also storage conditions. The low-stress optic coefficient of the acrylic resin produces DVD substrates with exceptionally low birefringence. PMMA OROGLAS offers light-transmission characteristics greater than 92%, which extends into the blue and UV wavelength range. The improved light transmission of the resin provides improved performance with all laser systems and UV curing lamps. Successful DVD molding requires the careful balance of conflicting process conditions (tilt, RF- signal and birefringence) for optimum performance and cycle time. The exceptionally low birefringence of OROGLAS VOD-100 acrylic resin reduces this constraint and widens the process window. This expanded process window provides the opportunity for improved signal quality and reduced cycle times. The electrical signal reported on the joined graphics have been obtained on the SPACELINE. The high modulus of the resin provides improved performance at rapid rotational speeds and increases disc stiffness to reduce failures due to bending. The superior surface hardness resin provides resistance to scratching during normal disc handling for improved playback and extended life. Jitter (%) Birefringence (nm) Electrical Signal Quality on DVD9 with Oroglas VOD-100 Acrylic Resin Disc Radius (mm) Effect of Temperature on Maximum Relative Birefringence PMMA OROGLAS AS VOD PMMA 23 C PMMA 32 C PC 23 C PC 32 C PC 50 C Layer 0 Layer Disc Radius (mm)
7 News from the DVD Market % of households million DVD players this year 2000 US Europe % homes with DVD players Source: Strategy Analytics China: World s largest DVDplayer market in five years? It is predicted that China s sales volumes will amount to eight million in 2000 possibly to exceed the United States, Japan and European countries. China is today a power house in the CD products market, having sold 10 million CD players last year, according to China s Ministry of Information Industry. This was reported by the Feb 13, 2000 Chengdu Shangbao (Chengdu Business News). Last year, China also sold 6 billion CDs, the newspaper reported. A few years ago, CDs became especially popular because of the flourishing market for VCD (Video Compact Disc) players and VCD discs, the newspaper noted. Since then, China s sales of high-end DVD and SVCD (Super Video Compact Disc) players have grown quickly. In 1999 alone, China sold a total of more than 60 million VCD, SVCD, and DVD players, according to the newspaper. The country s DVD player manufacturers are optimistic that the market will pick up this year. The falling prices are very likely to result in a market upsurge, which could hit between three million and five million DVD players, manufacturers said. Local suppliers sold 100,000 DVD players in 1998 and last year, sales soared to more than one million units. Source: Optical Disc Systems According to researchers Strategy Analytics, the number of DVD players being produced this year will rise to 22 million world-wide. The company expects that by 2005, 80 % of US and two-thirds of European households will have DVD players of some variety. The report does point out that the income from the DVD hardware market will be adversely affected by the rapidly falling hardware prices which expects to see DVD players next year at $200 in the US and $270 in Europe. DVD disc shipments are predicted to rise from 400 million units this year, to 2.3 billion by Source: Strategy Analysis MP3 boosts CD market Far from harming the CD market, MP3 is a boom, according to research from the Gartner Group, which conducted a survey indicating that MP3 users are purchasing more CDs on average in a six-month period than non-mp3 users. It s very clear that the segment of consumers that is purchasing significantly more CDs is also more receptive to digital distribution, says Sujata Ramnarayan of Gartner s e-business Services group. Instead of working against MP3, it s time that the RIAA and record labels start making MP3 work for them to sustain, nurture and grow what appears to be MP3 s positive correlation with music sales. The survey shows that MP3 users are using the Internet not just to download music, but also to buy CDs and get information. MP3 users are also making more in-store purchases (58% compared with 50% of the general population) % % % -81% +6% 0 CD DVD Cassette Cassette Music Source: RIAA Audio single VHS CD/VHS music sales up 6% in US New Application for DVD: Camcorders with 80 mm DVD-RAM Hitachi surprises the world with a unique innovative product: The company expects to introduce a digital camcorder with an integrated DVD drive in February next year. The device will use a rerecordable dualside eightcentimeter DVD disc with a capacity of 1.48GB per side to store video recordings which are compressed using MPEG-2 technology allowing recording times of up to one hour per DVD disc in DVD video quality. When used as a digital photographic camera, up to 2000 digital images can be stored in the camera s new especially designed DVD RAM. After photographic or film shootings, using a PC s DVD RAM drive, materials on the disc can immediately be read into a computer for creative further processing. Source: HIFI TEST 6/2000 According to figures released by the RIAA, CD music sales in the US topped 420 million units in the first half of this year, showing a rise of 6% against the first half of Music VHS also showed a similar rise at a time when sales for all US pre-recorded music dropped by 2.4%.
8 Seminar DVD-Replication 2000 in Seoul, Korea Due to the growth in the Korean CD industry with already more than 20 installed SKYLINEs and a first success in DVD, DAE JOO Ind. Co., the exclusive representitive of SINGULUS TECHNOLOGIES for Korea, has organized a Seminar DVD- Production 2000 at the Renaissance Hotel in Seoul, Korea on September 2000.During this seminar the divers companies like Nimbus, Technotrans, Netstal, Dr. Schenk, Heino Ilsemann and SINGULUS TECHNOLOGIES presented in detail their specific machinery for production of the diverse DVD-formats. It was a great opportunity for the Korean CD producers to evalute and understand the difference between CD and DVD production. More than 50 persons from more than 20 different companies attended this unique event. Herewith SINGULUS thanks DAE JOO Ind. Co. also in the name of all other participants for the perfect organisation of this DVD Seminar. SINGULUS Highlights SINGULUS TECHNOLOGIES France S.A. has been established effective Sept. 1st., 2000 in order to improve support to our customers in the important French market. Successful launch of MODULUS: Only short time after introduction end of July the first contract for MODULUS multilayer metallizer has been signed with a customer in Taiwan. Buhl Data Service, Germany has decided to source SINGULUS SKYLINEs for their CD- and DVD 5 replication. 8 machines have been installed within 2 months. In Japan the first DVD-SPACELINE was finally commissioned at our customer Toppan Printing. The network of 3 training centers located in Asia, Europe and USA is an important milestone in local customer support only provided by SINGULUS TECHNOLOGIES. Only 5 years after its foundation SINGULUS TECHNOLOGIES will become No. 1 replication equipment supplier in 2000 with projected sales of 700 Mio. DEM, approx. 300 Mio. US$. w o r l d w i d e 4/ MetaCom Printed in Germany, Technical alterations reserved SINGULUS TECHNOLOGIES Headquarters: SINGULUS TECHNOLOGIES AG Hanauer Landstrasse 103, D Kahl Tel.: Fax: sales@singulus.de Internet: FRANCE: SINGULUS TECHNOLOGIES FRANCE Phone: , Fax: singulus@club-internet.fr GREAT BRITAIN: SINGULUS TECHNOLOGIES UK LTD Phone: , Fax: singulus_uk@msn.com ITALY: SINGULUS TECHNOLOGIES Italia s.r.l. Phone: , Fax: singulus.italia@fastnet.it LATIN AMERICA: SINGULUS TECHNOLOGIES Ltda. Latin America Phone: , Fax: latinamerica@singulus.com.br MALAYSIA: SINGULUS TECHNOLOGIES SDN BHD Phone: , Fax: Singulus@tm.net.my SINGAPORE: SINGULUS TECHNOLOGIES Asia Pacific5 Phone: , Fax: singulus@singnet.com.sg SPAIN: SINGULUS TECHNOLOGIES Iberica Phone: , Fax : singulus@singulus-iberica.com UNITED STATES AND CANADA: SINGULUS TECHNOLOGIES Inc. Phone: , Fax: mac@singulus.com West-Coast Office: Phone: , Fax: rnuffer@singulus.com Representatives: Australia: Opticraft Technologies Phone: , Fax: Benelux and France: Vacuum OnLine N.V. Phone: , Fax: China: SINGULUS VIKA China Phone: , Fax: China: SAMLINK Technology Co. Sanli@publicl.sz.js.cn Phone: Fax: Czech Republic: Battenfeld Smid a spol., s.r.o. Zastoupeni CR Phone: Fax: Hong Kong: VIKA International Ltd., alfred@vika.com.hk Phone: , Fax: India: Optical Disc Technologies odt@bom5.vsnl.net.in Phone: , Fax: Japan: MEDIKEN Inc., hyakusoko@mediken.co.ip Phone: , Fax: Korea: DAE JOO Industrial Company, DAEJOO@UNITEL.CO.KR Phone: , Fax: Poland: Tadeusz Pupek, Dipl. Ing. Phone: Fax: Taiwan: ACEWAY METROTEC CO., LTD., a25960@ms18.hinet.net Phone: , Fax: Thailand: Datron Thai Co., Ltd., solar@ksc15.th.com Phone: , Fax:
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