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In this paper, the authors would like to describe the methodology to reduce the blend region at the interfaces of layers, in other words to improve the form birefringence effects. The authors also report examination results in terms of IPS-LCDs with the developed Z-plate that could be applicable to the optical compensation for IPS-LCDs. This is the first report to reveal the effects of Z-plate that is fabricated with nano-scale multi-layer technology on IPS-LCDs properties. The authors have developed a novel Z-plate compensation film with nano-scale multi-layered structure. The optically biaxial characteristics (n x>nz>ny) of this Z-plate are controlled by the combination of the form birefringence and the molecular orientation birefringence. This Z-plate exhibits some superior properties as a compensation film for IPS-LCDs.