AMSTERDAM, Jan 3 (Reuters) - Philips Electronics (PHG.AS: Quote, Profile , Research) (PHG.N: Quote, Profile , Research) said on Wednesday it had sold the majority of its "electronic paper" or rollable displays business to Luxembourg venture capital group, Technology Capital.

Technology Capital has invested 21 million euros ($28 million) in Philips' Polymer Vision business, and in return now holds around 60 percent of the shares in the company.

Philips retains 20 percent of the company which has around 30 staff. Employees and management hold the remainder.

The company is the first spinout from Philips' Technology Incubator which was set up four years ago to speed its technology to the market. Philips no longer sees display technology as a core activity, having sold its cathode ray tube and liquid crystal display businesses in recent years. Philips now focuses on healthcare and lifestyle businesses.
Not all companies within the research incubator are sold to outside companies: one micro laser business was snapped up by Philips Lighting recently.

Polymer Vision produces a paper-like display which can be rolled out to a greater size than the actual device itself. The display is easy to read, even in bright sunlight, and has significantly lower power requirements than a liquid crystal display with a backlight which is used in today's devices.

"Once the user has finished reading, the display can simply be rolled back into the device. This makes the rollable display ideal for mobile applications such as mobile phones, document readers and personal navigation systems," Philips said.

Volume production of a 5-inch monochrome rollable display will start this year in cooperation with existing partners. The company will continue to operate from its location at the High Tech Campus Eindhoven, the Netherlands. Philips has recently set up two more incubators to market its technology: one for healthcare and one for lifestyle.

Philips is the world's biggest lighting maker, a top three hospital equipment maker and Europe's biggest consumer electronics producer.