Quantum Materials Corp. Update (OTCQB: QTMM) - Achieves Industry Leading 91% Rec2020 Color Gamut Performance with Remote Phosphor "On-chip" QD Technology
November 8, 2018
Quantum Materials Corp. (OTCQB: QTMM) announced yesterday that the Company has built and extensively tested a remote phosphor "on-chip" cadmium-free, quantum dot LED that exhibits a color gamut rendering capability of 91% Rec2020. The technology they have announced is based on coating a standard blue colored (phospor driven) light emitting diode (LED) with a mixture of their high performance red and green quantum dots (green dots with a phenomenal FWHM level of only 16nm) and then encapsulating the surface of that diode via a proprietary method which protects the quantum dots from performance degredation over time when subjected to both heat and flux eminating from the diode, as well as protection from moisture and oxygen environments. I realize this release was fairly technical and most of you are just looking for an explanation of what exactly this means in terms of product development/placement and potential to drive revenue going forward for Quantum Materials Corp.
Well in terms of that situation, we see this announcement as a major breakthrough in the industry - and one that will likely not only put QMC on the map in terms of key opto-electronics materials suppliers, but could move them quickly up to the front of the class. The reason we believe this is simple. This quantum dot variant (of placing the quantum dots on top of the LED's in the back light unit (BLU) vs. using a full display sized layer of film placed towards the outer surface of the stack) is a massive step forward in quantum dot driven display technology over film based solutions as it solves a number of key issues for utilizing quantum dots to improve color performance. Removing film layers (both the QD enfused and barrier films) increases viewing angles and improves overall brightness performance (or lowers the energy consumption/wear and tear on LED's). In addition to being technically better, in terms of manufacturing, this is also a better solution than film based on the fact that this is truly a "drop in solution". It would be a bit like merely changing the light bulbs in your house and instantly having your house stay cooler in the summer and warmer in the winter without increasing your energy bill. Granted these light bulbs are going to cost a little more than the ones you are currently using, but the ROI here in terms of improving color gamut in a display is going to be huge in relation to the cost and ease of incorporation. In other words, until EL (electro-luminescent) QD design is perfected (and we think that is still coming but not right away), this is likely going to become the gold standard in QD driven display technolgy and make film based solutions go the way of the dinosaur, just like local dimming zones for enhanced contrast/HDR tech heralded the rapid extinction of edge-lit quantum dot design several years ago.
In fact, given the ease of implementation and what we expect to be a low price point for switching to this variant of display design (Squires states this fact in the release, see quote below), we don't see why most, if not all OEM's in the industry wouldn't be now interested in quickly moving large percentages of their current LCD TV and monitor models over to super high color gamut sets. If you were running the design team at an OEM display maker, wouldn't you? Also bear in mind that QMC's techology bumps the color rendering up roughly 20% from the current (and leading) QD based display maker Samsung, which has sets on the market that measure in the mid 70%'s in terms of Rec2020 coverage. This is one of the most competitive industries on the planet, and when one of these OEM's can make up ground on a competitor - or possibly even jump ahead, you can be sure that is a situation that is not taken lightly. In fact, we believe that one of the possible reasons that film based solutions haven't gained market share more quickly than they have (this of course has been partly due to high incremental film cost per display square area and difficulty in creating high color gamut solutions with 100% cad free materials) is the fact that the industry has been waiting for someone to crack the code of "on-chip" technology that doesn’t degrade materially over time causing unacceptable "color drift", and many of them were likely just waiting a bit longer for this much simpler and more elegant variant to arrive.
Well it looks by all accounts (if further testing tracks - and we have seen the current performance degredation graphs plotted against "on-time" hours and they are as flat as the horizon) that their wait is now finally over!
Results of tested color rendering capability of QMC remote phosphor "on-chip" quantum dot design with Rec2020 number in the 6th row, middle graph (91.3%).
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Commenting in the release: Stephen B. Squires, President and CEO of QMC stated: “Our proprietary continuous flow process for manufacturing these hard to produce nanomaterials has afforded us the luxury of rapid discovery and optimization of their performance properties. It is one thing to produce quantum dots with extraordinary optical performance. It is quite another to be able to do so consistently in large volumes of materials produced with absolute repeatability. We believe this remote "on-chip" quantum dot driven approach can be easily implemented by the OEM electronics industry and will result in LED displays with 91% Rec2020 performance at a price point that will enable much broader market adoption while also eliminating the spread of toxic cadmium containing opto-electronic components."
Quantum already has over 10,000 hours of on-time testing of this product under their belt and the press release mentions that accelerated testing is currently underway to ensure this product has the proper longevity testing protocols for display components under its belt - but based on the current push by OEM's to move their products up the Rec2020 foodchain, we expect this technology to move quickly towards adoption by one or more of the key LCD panel makers in the industy and with roughly 250 million displays manufactured every year, QMC has a huge addressable market for what looks to be a truly game changing technology.
We will continue to keep you up to speed on Quantum Materials Corp. as they move to commercialize their quantum dot/nanomaterials.
Regards,
Clay Chase
SD Torrey Hills Capital
858 456-7300
cc@sdthc.com
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