Plastic Logic is the Boston company that is getting closer than anyone to the holy grail of a paper-like digital display. You know the one: It makes printed newspapers and magazines obsolete. They announced a 100 million dollar investment yesterday that will let them build a new manufacturing plant.

Plastic Logic announced today that it will build the first factory to manufacture plastic electronics on a commercial scale. The facility will produce flexible active-matrix display modules for 'take anywhere, read anywhere' electronic reader products. It will utilize Plastic Logic's unique process to fabricate active-matrix displays that are thin, light and robust; enabling a reading experience closer to paper than any other technology.

To fund this comprehensive commercialization program, Plastic Logic has completed a first closing of $100 million of equity finance led by Oak Investment Partners and Tudor Investment Corporation. Existing investors Amadeus, which led the seed financing of Plastic Logic, Intel Capital, Bank of America, BASF Venture Capital, Quest for Growth and Merifin Capital also participated. The financing is one of the largest in the history of European venture capital.

If they are successful in commercializing the product the market size will massive. It may even make Google seem like a small player. Imagine the ecological benefits of removing the need for millions of tons of newsprint. Keep this company on your watch list.

Here is part of what the Financial Times says about the technology:

However, news that a plant is to be built will create a stir far beyond Cambridge. Morry Marshall, vice-president for strategic technologies at Semico, a Phoenix-based semiconductor research group, says plastic semiconductors have "tremendous potential" and add up to a "breakthrough that is waiting to happen".

The initial products from the factory will be pieces of plastic about A4 size. The basic plastic substrate will be polyethylene terephthalate, a form of plastic used to make drinks bottles.

"I would not be surprised if Prof Sirringhaus gets a Nobel prize for his achievements in this technology," says Mr Hauser.

By 2009 the Dresden plant should be producing 2.2m units of A4-size semiconductor sheets a year. They will initially be used as flexible "control circuitry" for large displays the size of a piece of paper that can hold large amounts of information - equivalent to thousands of books.

The displays will most likely be made by other electronics companies, with Plastic Logic providing the crucial control circuitry and possibly licensing its designs.