Taiwanese suppliers of pico projector modules are teaming up with major technology providers for their research and development in a bid to cash in on an expanding market.

Himax is working with 3M to develop LCoS (liquid crystal on silicon) solutions, while Asia Optical and Microvision are collaborating on the production of modules based on laser scanning technology.

Although still relatively small, Taiwan’s manufacturing base is expected to grow in coming months following the arrival of new entrants including LiteOn, Delta and C-Media.

Taiwan’s manufacturers believe the boost in research and development will help to tackle issues with pico projector technologies such as power consumption, thermal regulation, light engine dimensions and component costs.

Figures from In-Stat suggest there will be 20 million devices with embedded pico projector solutions by 2014 - 90 per cent of which will be for mobile phones.

Meanwhile research by DisplaySearch reveals that shipments of embedded or dedicated projectors for digital cameras, mobile phones and other portable devices will overtake those of stand-alone units by 2014 as power consumption, size, brightness and price continue to improve.

Sales of embedded-type pocket projectors are forecast to hit 97 million units and $5 billion (£3 billion) by 2018.