Liquid Crystals

Merck makes communication visible

TopTopics@merck.de
Sales growth in the Liquid Crystals
division between the years 1970
and 2005 reflects the very rapid
development in the area of liquid
crystal displays.
Contents

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

Flat is beautiful
LCDs as part of our modern life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

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

LCs and LCD technology from Merck . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Team solutions wanted

Customer-centric research & development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

On our venture for innovations

Merck’s OLED activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Consolidating our strong market position

Active patent strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Focus on customer proximity

LC locations in Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Rooted in Darmstadt
Company profile of Merck KGaA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

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


Dr. Michael Römer
Chairman of the
Dear Readers,
Executive Board of Have you seen liquid crystals in action yet today? In
Merck KGaA 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
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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. Paul Breddels
Executive Vice Pre-
In a word …
sident of the Liquid …let’s be honest: Who could have ever predicted
Crystals division 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
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Liquid Crystals – Merck makes communication visible

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.

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 Flat is beautiful

Flat is beautiful
LCDs as part of our modern life

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.

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.
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 : 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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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.
||
In contact with his distant spouse –
and Florian Skirl has his digital diary with him.
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 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.
 Flat is beautiful

Facing the challenges

How 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 Ross Young, President of DisplaySearch, Austin, United States, a leading
were just about 10 years old – portable and expert for the flat panel display market: Merck is the global market
mobile. At the end of the 1990s, new liquid leader for liquid crystals. The market development of new products,
crystals made the development of flat monitors particularly in the electronics sector, depends on many factors. Who
possible. These elegant monitors brought a could have ever imagined the boom in mobile phones, for instance?
drastic change to the working world – they are Their annual volume has doubled since 2001 to nearly one billion in
slimmer and lighter, consume less power and 2005. Here, the innovations of Merck researchers played the same cru-
produce less heat than the bulky cathode ray cial role as now in the development of LCD TVs. In 2005, already more
tube monitors. than 30 percent of all LCD TVs had screen diagonals of 30 to 39 inches
So liquid crystals have really revolutionized and this percentage will very quickly double.
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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Liquid Crystals – Merck makes communication visible

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.

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

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
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.

Cholesteryl benzoate: the structural formula

of the “original liquid crystal”

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Liquid Crystals – Merck makes communication visible

High-tech chemicals: Liquid crystals

Liquid crystals are typically elongated organic molecules They are used in electro-optic display systems:
having an uneven distribution of electrical charges along LC displays. In order to achieve a combination of properties
their axes (dipole). This gives rise to a special physical char- suited for a particular application, liquid crystal mixtures
acteristic to which liquid crystals owe their name: Between are needed that may consist of 10, 20 – in individual cases
the crystalline and liquid phase they exhibit a further state of as many as 30 or more – single liquid crystal substances.
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.
crystalline smectic nematic liquid
Liquid crystals of the nematic type are of by far
the greatest importance technically speaking.
liquid crystalline

Twisted nematic cell LC displays

A modern TN flat screen consists of several layers. which can be addressed individually. The pattern of bright
A very thin layer of a liquid crystal mixture is sandwiched and dark pixels produces the image. As there is almost no
between two thin glass plates coated with transparent elec- current flow in the LCD, this type of display is extremely
trodes and is twisted by 90 degrees. Polarizers are situated energy-efficient.
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 Structure of the different layers of an LC display
to eight micrometers in thickness – is the heart of every LC shown in cross-section of a single pixel (TN cell,
display: In combination with polarizers, it acts as a “light twisted nematic cell)
valve” for the backlight.
unpolarized
The first polarizer allows light of only a particular white light
plane of oscillation to pass through it and then polarizer
the light reaches the liquid crystal. The applied glass substrate
TFT ITO layer
voltage orients the molecules perpendicular to
orientation film
the glass plates. The light cannot follow this new
orientation and is unable to pass through the
second polarizing filter that is
rotated by 90 degrees to the first one. There- liquid crystal
fore the pixel is black. On removal of the voltage,
orientation film
the molecules return to their original twisted glass substrate
arrangement. The light follows this twist and now indium tin oxide
is able to pass through the second polarizer: The (ITO) layer
pixel is now bright. An LCD contains many such
color filter polarizer
optical switches or so-called pixels,

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

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.

LCD TVs will soon be in many living rooms With this new generation of liquid crystals,
Through intensive research and cooperation display manufacturers are now able to carry
with partners, Merck succeeded in developing out series production of large LCDs for televi-
the VA (Vertical Alignment) technology, where sions with VA technology, having a higher
specially developed substrates are used in the resolution, a lighter weight, faster switching
cell, which force the liquid crystal molecules times – which are now already far below ten
into different angles of tilt to the substrate milliseconds – and a wide viewing angle – of
surface. This gives viewing angles exceed- up to nearly 180°.
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.

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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.
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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.
Positive forecasts
Independent 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.

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 .
Several product families – A unifying logo
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 films for enhanced
image quality of displays.
Conjugated polymers and small molecules used in
advanced Organic Light-Emitting Diodes (OLEDs).
Thin, flexible, energy-saving, high-value OLED lighting
elements.
OLED components for inspiring and unique light
ideas for lifestyle design.
Chemistry for home cinema, SMS, chat room & Co.
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 classified 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 .
Easy-to-produce, high-performance OLED
signage – extremely thin and light.
Novel polymers for fast and efficient
transistor printing processes.
Printable polymer materials for smart
electronic products.
Printable polymers for light, flexible
solar cells .
Efficient and environmentally friendly structuring
tools for photovoltaics (solar cells) and displays.
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Liquid Crystals – Merck makes communication visible

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.

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 Team solutions wanted

Team solutions wanted

Customer-centric research & development
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.

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
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.

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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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,
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Local production and applications development – in 2002,
Merck opened its LC mixture production facility in South
Korea.
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.
Owain Parri (front) and Don Graham
test new optical films for their
properties in Merck's laboratories at
Chilworth Science Center.
 Team solutions wanted

Global networking of research Semiconductor polymers for new applications

The backbone and cradle of Merck’s liquid
crystal research and development are the
company headquarters in Darmstadt, thirty  electronics. Merck scientists are currently
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.
At Chilworth Science Center Merck is also
active in the still young field of polymer
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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 Elisabeth Meyer investigates physical properties of new
LC substances in a strong magnetic field.
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.
Electronics of a passive-matrix display used
for small LCDs – although they have limited
resolution, fast and fancy electronic compo-
nents are necessary.
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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.

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 .
Team solutions wanted
Research for printable RFID chips
In 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.
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.
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Liquid Crystals – Merck makes communication visible

A bistro table, designed by and manufactured for artist

Ingo Maurer, with OLED lighting panels from Merck.

| 22 |
 On our venture for innovations

On our venture for innovations

Merck’s OLED activities

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.

In our constant search for new business fields e.g. special video games. They inherently have
and technology platforms for new markets, a viewing angle of more than 160° and could
as market leader in liquid crystals we have reduce the price of flat screens overall.
resolved to invest in further future-oriented
technologies, for example for displays. Thus, OLED-based flat panel displays
Merck’s LC division acquired two European OLED displays have in principle a relatively
enterprises in the area of organic light-emit- simple structure: They consist of a thin film of
ting diodes (OLEDs) in 2005. organic material, measuring only approximate-
ly 100 to maximally 200 nanometers in thick-
OLEDs contain organic semiconductor materi- ness, which is sandwiched between a metal
als, which, under the influence of electrical cathode and a transparent anode – normally of
current, emit light and are therefore self-illu- indium tin oxide. Glass or a flexible, transpar-
minating. They can be used for lighting and ent substrate serves as carrier material. Due
backlighting of large surfaces and are suitable to their flat structure, OLED-based displays
for display and light source applications. open up a new world of creative options. These
include flexible displays, which could well even
Merck is one of today’s leading suppliers of be rolled up to give us the full weekend issue of
materials for OLEDs. Highly specialized small our daily newspaper as a flexible e-paper.
molecules and conjugated polymers are already
among the materials offered. These can be
used, for example, to produce innovative dis- Atmospheric lighting is an important element of design for today’s interior designers
plays. Present-day conventional screens have catering to “places to be” – OLEDs are suitable as diffuse light sources.
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

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Liquid Crystals – Merck makes communication visible
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.
| 24 |
On the way to a bright future
OLED 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
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) .
metal cathode
charge carrier
transport layer
transparent anode
On our venture for innovations
The structure of an OLED display is in principle quite simple:
The polymer film 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 film where they occupy
the LUMO of the active layer . On the anode side, electrons
are transferred from the HOMO of the organic film 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-efficient flat panel light sources .
voltage
emitting layer
glass substrate
| 25 |
Liquid Crystals – Merck makes communication visible
Consolidating our strong market position
Active patent strategy
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.
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.
| 26 |
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.
 Focus on customer proximity

Focus on customer proximity

LC locations in Asia
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.

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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Liquid Crystals – Merck makes communication visible

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.

| 28 |
 Gernsheim, Germany is a major production
site for liquid crystals. Meeting the high demand –
International LC activities Alfred-Otto Draut and Roland Heidrich belong
Our subsidiary Merck Advanced Technolo- to a worldwide team of committed employees.
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.

| 29 |
 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.
LC Competence Network
Darmstadt/Gernsheim (Germany)
Chemical Research
Physical Research
Engineering Research
Mixture Development
Components Production
Mixture Production
Gyeonggi (South Korea)
Application Lab
Mixture Development
Mixture Production
Chilworth/Southampton (UK)
Chemical Research
Taoyuan (Taiwan)
for Polymer Materials
Application Lab
and Optical Films
Mixture Production
| 30 |
Customer proximity is a priority
Merck’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.
Atsugi (Japan)
Engineering Lab
Application Lab
Mixture Development
Mixture 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.
Liquid Crystals – Merck makes communication visible

Rooted in Darmstadt
Company profile of Merck KGaA
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.

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.

| 32 |

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.
Rooted in Darmstadt
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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Liquid Crystals – Merck makes communication visible

Contacts to Merck’s LC experts

Germany
Merck KGaA Phone: +852-2376-3878 Phone: + 914-592-4660 Ext. 780
LC Marketing & Sales Fax: +852-2576-1912 Fax: + 914-592-9469
Ms. Silke Endres Emma.Chu@merck.com.hk Dschroth@emdchemicals.com
Frankfurter Str. 250
64293 Darmstadt Japan South Korea
Phone: +49 (0)61 51/ 72-29 61 Merck Ltd. Merck Ltd.
Fax: +49 (0)61 51/ 72-31 32 Ms. Kaoru Takahashi Ms. Yeon-Jung Kim
Silke.Endres@merck.de ARCO Tower, 5F 8-1, Haesung-2-Bldg., 15th Floor
Shimomeguro 1-chome 942-10, Daechi-dong, Kangnam-ku
Merck OLED Materials GmbH Meguro-ku Seoul
Ms. Antje Schilling Tokyo 153-8927 Phone: +822-2185-3892
Industriepark Höchst, F 821 Phone: +813-5434-4909 Fax: +822-2185-3880
65926 Frankfurt/Main Fax: +813-5434-4707 Yeon-Jung.Kim@merck.co.kr
Tel: +49 (0)69/ 305-13705 Kaoru_Takahashi@merck.co.jp
Fax: +49 (0)69/ 305-21592 Taiwan
info@merck-oled.de North America Merck Display Technologies Ltd.
EMD Chemicals, Inc. Ms. Lesly Chen
China An Affiliate of Merck KGaA, No. 33-1, Ching Chien 1st Road
Merck Ltd. Darmstadt Germany Kuan Yin Industrial Park
Ms. Emma Chu Mr. Dieter Schroth Taoyuan / Taiwan R.O.C.
No. 3 Lockhart Road, 29th Floor 7 Skyline Drive Phone: +8863-483-6521 Ext. 2204
Wanchai, HongKong Hawthorne, New York 10532 Fax: +8863-483-6775
P. R. China Lesly.Chen@merck.com.tw

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 Contacts to Merck’s LC experts

Note: Published in June 2006 by Design:

You will find further, more detailed Merck KGaA UNIT Werbeagentur, Weinheim
information in our constantly Corporate Communications
updated collection of Internet links Frankfurter Straße 250 Graphics:
at www.liquidcrystals.merck.de. 64293 Darmstadt Thomas Braun, Neckargemünd
Fax: 06151 / 72–8793 CapCom, Darmstadt (p. 12 bottom)
An overview of liquid crystal mix- E-mail: corpcom@merck.de
tures and other display materials www.merck.de Photos:
offered by Merck is available upon Marco Moog, Hamburg
request from Merck KGaA Darm- Text: Bltzwerk, Mühltal (p. 7, 24)
stadt, LC Marketing & Sales. Rent-a-Pen® Communication Eva Speith, Darmstadt (p. 9)
Services, Neuss Optrex, Babenhausen (p. 13, 20)
Our TopTopics brochure series also Hafen Hamburg Marketing e.V./
deals with other topics of inter- Editing: Achim Sperber (p. 16)
est concerning health and chemi- Dr. Werner Becker Ingo Maurer GmbH, München (p. 23)
cal products, as well as Merck’s (Liquid Crystals division), Trek Star, Lorsch (p. 24)
research. If you are interested or Dr. Tobias Engel Hagenfilm, Frankfurt (p. 30)
have any questions, please feel free (Corporate Communications)
to contact Corporate Communica- Photo models (cover):
tions via TopTopics@merck.de. English translation: Sigrid, Emil and Anton Engel
Diane Davies, Merck KGaA
Printing:
Kuthal, Mainaschaff, Germany

W.840.485

Merck employees from Marketing & Sales and

350606

Customer Services in Tokyo maintain direct

contact with our customers in Japan at all times.
www.merck.de

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