They'll also use the funds to produce more epaper screens, which is now being called "dual pigment" technology (black and white). The only reason I point that out is that it clearly indicates E-ink are focusing on the color E-ink screens, which will use 4 pigments, not 2. That's a sign that they want to push forward with the color screen production and (hopefully) get it on the market.
I wonder how this will affect CPT's other relationships? They also produce screens for E-ink's competitors, most notably Pixel Qi. CPT have been a manufacturing partner for Pixel Qi since at least December.
Well, I bet I can tell you one way this deal affected everyone. E-ink didn't buy any stock in the company; they just loaned CPT money. I don't think they wanted to do an unsecured loan, but that may have been the only way to tranfer the funds without upsetting the rest of CPT's business partners.
Update: Display Daily investigated further, and they reported that "CPT will produce EPD backplanes and FFS panels for EIH. Production of 10.1-inch FFS panels will begin in August and production of 7-inch versions will begin in September at CPT’s Gen 6 plant, reported Chen and Hwang. If all goes according to plant EIH will account for 15 to 20% of the plant’s capacity this year, with the percentage rising to more than 30% in 2012."
So we're going to see 10" screens simialr to the NookColor? Nice
image by Biczzz