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The LCDs used for projection systems are typically small reflective or transmissive panels set off by a powerful arc lamp source. A number of lenses expands the reflected or transmitted image and then displays it on a screen. With front-projection systems the LCD is situated on the same side of the screen as the viewer, while in rear-projection systems the screen is illuminated from behind. Projectors of higher cost and capability might use three distinct LCD panels, creating separate red, green, and blue images that come together to make a coloured display on the screen.

The growth in need for visual presentations has placed a growth in emphasis on the switching speed of liquid crystals. This has led to the creation of devices build with smectic liquid crystals, certain types of which emit a faster electro-optical response than nematic liquid crystals. The surface-stabilized ferroelectric liquid crystal (SSFLC) display is currently the most sophisticated smectic device. In it the liquid crystal molecules are managed in layers perpendicular to the substrate planes, which are distanced by one or two micrometres, and in the layers the molecules are on a slant, as shown in the figure. The host liquid crystal possesses optically active molecules, and a subtle consequence of the optical activity and the shape of the molecules is the appearance of a permanent charge separation, or ferroelectric dipole, similar to the ferromagnetic dipole of a magnet. The direction of this dipole is perpendicular to the tilt direction of the molecules and in the plane of the layers. So, there exists a permanent charge separation through the liquid crystal layer in the SSFLC, and its sign is directly paired up to the tilt direction of the molecules. An applied voltage of the right sign can reverse the direction of this dipole in tens of microseconds and so reverse the tilt direction of the molecules. The respective change in optical properties can cause a change from light to dark if or when one or more polarizers are used.

SSFLC devices have been publicized for bigger passive-matrix displays, but their expense and complex nature has hindered them from making any significant impact on the market. Small transmissive and reflective active-matrix SSFLC displays, however, display some possibility for use as elements in projection systems or as viewfinders in digital cameras. Their speedy reaction allows them to be used in time-sequential colour systems, in which expensive colour filters are taken out for a coloured backlight that flashes red, green, and blue in quick pace (about 100 cycles per second). For example, the liquid crystal may be switched to a transmissive state during the red and green periods but to a nontransmissive state in the blue period, with the result that the eye sees an average of red and green light, or the colour yellow.

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