Category Archives: FPDs and TFTs

Cima NanoTech, a developer and manufacturer of transparent conductive film solutions, announced today that it has entered into a joint venture with Foxconn, the world’s largest ICT technology provider and vertically integrated device manufacturer, to deliver the industry’s first cost-competitive, projected capacitive (pro-cap) solution for large format touch screens. Both companies will sell SANTE ProTouch modules through Cima Touch, the company formed under this joint venture.

Foxconn’s expertise in the mass production of reliable, high-quality products, coupled with Cima NanoTech’s proprietary SANTE self-assembling nanoparticle technology, delivers a cost-competitive solution for customers looking to shift from infrared (IR) touch technology to pro-cap multi-touch solutions and systems.

“SANTE ProTouch modules will be manufactured at our newly established manufacturing facilities,” said Jon Brodd, CEO of Cima NanoTech. “Having a full, in-house supply chain for large format projected capacitive touch solutions is an industry first, and ensures that we have full control over the quality and reliability of SANTE ProTouch modules.”

SANTE ProTouch modules provide users with ultra fast response for an intuitive multi-user, multi-touch experience, making it an ideal solution for interactive digital signage, interactive kiosks, interactive tabletops and interactive whiteboards. The overall design and product appeal of the touch system is also enhanced with edge-to-edge cover lens and narrow bezel.

“Cima NanoTech has a cutting-edge, disruptive technology which puts them at the forefront of high performance innovations.” said Kevin Chen, Director of Foxconn Technology Group. “Our partnership with Cima NanoTech enables us to break new ground and address the rapidly growing large format touch market.”

SANTE ProTouch modules are available in sizes ranging from 40” to 85”. The non-moiré characteristic of SANTE self-assembling nanoparticle technology makes it compatible with all LCD display models in the market; the highly customizable nature of SANTE ProTouch modules also provides manufacturers and system integrators with the freedom to design features such as cover lens thickness, glass type and bezel width.

LCD TV panel makers’ inventory levels will be greater than normal in the second half of 2015, due to softening demand and increased output from new LCD panel manufacturing lines (fabs). According to IHS Inc. (NYSE: IHS), a global source of critical information and insight, LCD TV panels reached a peak of 4.7 weeks of inventory in December 2013. Since then, panel makers have sustained inventories at normal levels (i.e., less than four weeks); however, the situation recently changed, when panel makers did not slow production in the second quarter (Q2) of 2015, as the market shifted to over-supply. Inventory levels are, therefore, expected to stretch beyond the normal range to reach 4.9 weeks at the end of the third quarter (Q3) 2015, which may cause further decreases in panel prices in the second half of this year.

“Weak demand caused by the soft global economy, and supply increases following the initiation of mass production at three generation 8.5 (Gen 8.5) fabs in China, will likely further aggravate the LCD panel supply-and-demand imbalance,” said Ricky Park, director of display for IHS Technology. “Manufacturers maintaining current utilization rates at existing production lines also will also increase inventories.”

According to the IHS Display Production & Inventory Tracker, utilization rates at Gen 7 and larger LCD fabs have remained above 90 percent since April 2014. That’s because shipments of TV panels in terms of area surged more than 17 percent, due to robust demand for larger TVs in 2014. “Despite high utilization rates, TV panel makers have been able to control inventories at normal levels,” Park said. “TV manufacturers purchased too many TV panels in the first half of 2015, anticipating greater consumer demand in the second half of the year. However due to stagnant growth in the LCD TV market, TV manufacturers are likely to reduce their panel purchases in the second half of 2015.”

Yet, panel output from China is expected to increase further due to aggressive production schedules at new Gen 8.5 fabs at BOE, ChinaStar and CEC Panda. Also, some fabs in South Korea and Taiwan have been fully depreciated, which lowers panel production costs. This will allow the panel makers to provide panels at lower prices without losing margins, (while their competitors may suffer from falling panel prices). And thus, they will likely keep the utilization rates, despite softer demand. “LCD TV panel prices will continue to decline through the third quarter of this year; however, some models are still profitable, so panel makers do not necessarily intend to reduce their output,” Park said.

Panel manufacturers’ TV panel inventory levels are estimated to rise to 4.1 weeks at the end of July 2015 and to 4.9 weeks at the end of September 2015. Increased inventory levels are expected to compel panel makers to accept TV manufacturers’ demand to cut prices.

LCD_Panel_Inventory_Chart

Starting in the second half of 2015, the overall consumption of active-matrix organic light-emitting diode (AMOLED) materials will surge, as LG Display increases the production of white organic light-emitting diode (WOLED) TV panels. In the first half of 2015, the WOLED organic materials market reached $58 million; however, in the second half of the year the market will increase nearly threefold, reaching $165 million. The WOLED organic materials market is forecast to grow at a compound annual growth rate (CAGR) of 79 percent from 2014 to 2019, according to IHS Inc. (NYSE: IHS), a global source of critical information and insight.

“Although the WOLED organic materials market is still at a fledgling state, it will grow considerably in tandem with a rise in WOLED panel production, beginning in the second half of 2015,” said Kihyun Kim, senior analyst for display chemical and materials at IHS Technology. “Since WOLED technology is mainly used for large-area AMOLED displays, particularly TVs, this rapid growth in the WOLED market will lead the continued growth in the overall AMOLED materials market.”

LG Display, the leader in the WOLED panel market, began manufacturing WOLED TV panels in their E3 line in Paju, South Korea, in the fourth quarter (Q4) of 2012. To mass produce WOLED panels, the company installed 8th generation mother glass processing in its E4 line in February 2014. While the line became operational in Q4 2014, the line yield has been low to date; however, full operation is set to begin in earnest in the second quarter (Q2) 2015. “Most AMOLED TV panel makers, especially in China, are focusing on WOLED technology, which supports future WOLED material market growth,” Kim said.

AMOLED_Materials_WOLED_Chart2

The total AMOLED materials market, including both the fine-metal mask red-green-blue (FMM RGB) and WOLED types, will grow 54 percent year over year to reach $658 million in 2015, according to the latest IHS OLED Materials Market Tracker forecast. The AMOLED materials market is expected to reach $2.0 billion in 2019, growing at a CAGR of 37 percent from 2014 to 2019.

Global consumers have lately become less interested in acquiring conventional notebooks with 15-inch displays, and they are instead shifting their spending to smaller product segments. In the first half of 2015, panel shipments in the 15-inch range (i.e., 15.0 inches to 15.9 inches) dropped 14 percent year over year, from 44.5 million to 38.4 million units, according to IHS Inc. (NYSE: IHS), a global source of critical information and insight. At the same time, driven by the popularity of Chromebook, notebook display shipments in the 11-inch range have grown from 8 million units to 11 million units.

Notebook_Displays_Chart

“Thanks to affordable prices, and a completed ecosystem with a host of hardware and app choices and a user-friendly cloud environment, Chromebook has expanded its customer base from small and medium-sized businesses and the education market to general users,” said Jason Hsu, supply chain senior analyst for IHS Technology. “The Chromebook sales region has also expanded from the United States to emerging countries, where more local brands are launching Chromebook product offerings. There are also more products set to debut in the 12-inch range, thanks to the success of the Microsoft Surface Pro 3 and rumors of Apple’s upcoming 12.9-inch tablets.”

According to the most recent IHS Notebook and Tablet Display Supply Chain Tracker, total notebook panel shipments to Lenovo and Hewlett-Packard fell 27 percent month over month from 6.4 million units in May to 4.7 million units in June, while overall set production increased by 13 percent from 5.4 million units to 6.1 million units. These two leading notebook PC brands have recently taken steps to regulate panel inventory, in order to guard against excess product pre-stocking.

“The currency depreciation in Euro zone and emerging counties earlier this year jeopardized consumer confidence and slowed the purchase of consumer electronics, including notebooks,” Hsu said. “Moreover, in April, Microsoft leaked the announcement of its new Windows 10 operating system. Despite Microsoft’s claims that a free upgrade to the new operating system would be available to Windows 8 users, many consumers still deferred purchases, which increased the brands’ set inventory. Notebook manufacturers could decide to lower set production in the third quarter, after the end market becomes sluggish in May and June.”

With notebook panel prices remaining very low, profitability has become an issue, and many panel makers are facing pressure to maintain fab loading and gain market share. “Panel cost structure has become crucial in the struggle to stay competitive,” Hsu said. “Continuous panel over-supply not only hurts profitability, but could also confuse the real panel market demand in the fourth quarter of 2015 and the first quarter of 2016. It’s time for panel makers to revise their production numbers, and curb capacity utilization, to keep pace with actual market demand.”

Due to decreased information technology (IT) demand, and global currency issues that resulted in higher import prices in most regions, overall large-area TFT LCD unit shipments in the first half (H1) of 2015 fell 2 percent year over year to reach 340 million units. Display shipments for tablet PCs fell 17 percent, notebook PC displays declined 6 percent, and PC monitor displays fell 8 percent, while LCD TV panel unit shipments increased by 11 percent, according to IHS Inc. (NYSE: IHS), a global source of critical information and insight.

“IT panel makers suffered from poor demand and excess inventory from last year, while aggressive procurement by global TV brands kept TV panel demand high,” said Yoonsung Chung, director of large area display research for IHS Technology. “Actual TV sell-in over the first half of this year is still lower than expected, however, due to frozen demand caused by global currency exchange issues.”

TV panel prices were high in H1 2015 and, as a result, TV brands suffered, while IT panel pricing followed market demand, according to the latest IHS Large Area Display Market Tracker.  “With the lower-than-expected TV sell-in, TV makers are expected to have higher inventories. This will result in a decrease in TV panel demand, which will weigh on TV panel prices in the second half of 2015,” Chung said.

Large_Area_TFT_LCD_1H15_result

Large-area TFT LCD shipments in terms of area grew 8 percent year over year, reaching 77 million square meters in H1 2015. TV panels comprised three quarters (77 percent) of all TFT LCD area shipments, but only 39 percent of unit shipments. “Comparatively stable TV shipment area in the first half of 2015 helped TFT LCD panel makers maintain utilization and profits despite declining IT panel demand,” Chung said

Recently, quantum dots (QDs)–nano-sized semiconductor particles that produce bright, sharp, color light–have moved from the research lab into commercial products like high-end TVs, e-readers, laptops, and even some LED lighting. However, QDs are expensive to make so there’s a push to improve their performance and efficiency, while lowering their fabrication costs.

Researchers from the University of Illinois at Urbana-Champaign have produced some promising results toward that goal, developing a new method to extract more efficient and polarized light from quantum dots (QDs) over a large-scale area. Their method, which combines QD and photonic crystal technology, could lead to brighter and more efficient mobile phone, tablet, and computer displays, as well as enhanced LED lighting.

To demonstrate their new technology, researchers fabricated a novel 1mm device (aka Robot Man) made of yellow photonic-crystal-enhanced QDs. Every region of the device has thousands of quantum dots, each measuring about six nanometers. Credit: Gloria See, University of Illinois at Urbana-Champaign

To demonstrate their new technology, researchers fabricated a novel 1mm device (aka Robot Man) made of yellow photonic-crystal-enhanced QDs. Every region of the device has thousands of quantum dots, each measuring about six nanometers. Credit: Gloria See, University of Illinois at Urbana-Champaign

With funding from the Dow Chemical Company, the research team, led by Electrical & Computer Engineering (ECE) Professor Brian Cunningham, Chemistry Professor Ralph Nuzzo, and Mechanical Science & Engineering Professor Andrew Alleyne, embedded QDs in novel polymer materials that retain strong quantum efficiency. They then used electrohydrodynamic jet (e-jet) printing technology to precisely print the QD-embedded polymers onto photonic crystal structures. This precision eliminates wasted QDs, which are expensive to make.

These photonic crystals limit the direction that the QD-generated light is emitted, meaning they produce polarized light, which is more intense than normal QD light output.

According to Gloria See, an ECE graduate student and lead author of the research reported this week in Applied Physics Letters, their replica molded photonic crystals could someday lead to brighter, less expensive, and more efficient displays. “Since screens consume large amounts of energy in devices like laptops, phones, and tablets, our approach could have a huge impact on energy consumption and battery life,” she noted.

“If you start with polarized light, then you double your optical efficiency,” See explained. “If you put the photonic-crystal-enhanced quantum dot into a device like a phone or computer, then the battery will last much longer because the display would only draw half as much power as conventional displays.”

To demonstrate the technology, See fabricated a novel 1mm device (aka Robot Man) made of yellow photonic-crystal-enhanced QDs. The device is made of thousands of quantum dots, each measuring about six nanometers.

“We made a tiny device, but the process can easily be scaled up to large flexible plastic sheets,” See said. “We make one expensive ‘master’ molding template that must be designed very precisely, but we can use the template to produce thousands of replicas very quickly and cheaply.”

While overall smartphone market growth continues to slow, global demand for low temperature polysilicon thin-film-transistor liquid-crystal displays (LTPS TFT LCD) for smartphones is on the rise. Led by Apple’s iPhone 6 and iPhone 6 Plus, LTPS TFT LCD smartphone display shipments grew 31 percent in the first half (H1) of 2015 to reach 251 million units. The iPhone displays made up more than half (52 percent) of all LTPS TFT LCD smartphone display shipments in H1 2015, according to IHS Inc. (NYSE: IHS), a global source of critical information and insight.

LTPS TFT LCD is used in Apple’s iPhone and other high-end smartphones that have full high definition (FHD) displays with resolutions of 1920×1080 pixels and in wide quad high definition (WQHD) displays with resolutions of 2560×1440 pixels. Display manufacturers are now investing in new fabs to increase future production capacity, not only for LTPS TFT LCD displays, but also for high-resolution active-matrix organic light emitting diode (AMOLED) displays, according to the IHS Smartphone Display Market Tracker.

“Apple adopted wider displays with higher resolution in its latest iPhone series, which has helped spur demand in LTPS TFT LCD displays,” said Hiroshi Hayase, director of analysis and research for IHS Technology. “Due to strong growth in LTPS TFT LCD for the iPhone, Apple competitors are also now increasing orders of high-resolution displays.”

apple smartphone display

Led by declining thin-film-transistor liquid-crystal display (TFT LCD) revenues, global flat panel display (FPD) industry revenue is forecast to fall 2 percent, from $131.4 billion in 2014 to $129 billion in 2015. Dwindling TFT LCD display revenues, declining panel demand in the PC sector, along with ongoing panel-price erosion are the primary reasons for overall FPD revenue declines this year, according to IHS Inc. (NYSE: IHS), a global source of critical information and insight.

After growth last year, global TFT LCD display revenue is expected to decline 3 percent, from $120 billion in 2014 to $115.8 billion this year. However, IHS expects a return to TFT LCD market revenue growth in 2016. Plasma, cathode-ray tube (CRT), passive-matrix liquid crystal display (LCD) and electronic paper display (EPD)  are also facing revenue declines, as some technologies become obsolete and others lack new applications. Organic light-emitting diode (OLED) is the only display technology expected to grow in 2015, according to the latest IHS Display Long-Term Demand Forecast Tracker.

TFT LCD display revenues grew 5 percent last year, from $114.4 billion to $120 billion, due mainly to strong growth in LCD TV panel shipments and higher panel prices. However this year the TFT LCD market is expected to decline for the following reasons:

–   Falling demand for panels used in tablets, notebooks and desktop monitors

–   Price erosion for smartphone panels in 2015, due to sharp increases in production for low-temperature polysilicon (LTPS) TFT LCD panels, which provide higher resolution and lower power consumption

–   Declining open-cell LCD TV panel prices, including 4K UHD TV panels

Even as revenues decline in 2015, area demand for TFT LCD is still expected to grow nearly 4 percent, from 165.5 million square meters in 2014 to 172 million square meters in 2015. This shows that the revenue decline is being driven by  average selling price (ASP) erosion.

“Panel prices are eroding for several reasons, including the swing in LCD TV panel inventory from limited supply to over-supply, which began in the second quarter of this year,” said David Hsieh, senior director of display research for IHS. “Other reasons include falling demand in the PC sector, and panel-capacity expansion pressure on smartphone displays, especially in LTPS panels. The entire FPD supply chain now must shift focus from growth to cost reduction, in order to maintain profitability.”

Active-matrix OLED (AMOLED) display revenues are projected to reach $11.8 billion in 2015, up 36 percent from 2014. Passive-matrix OLED (PMOLED) revenues are projected to reach $450 million this year, up 22 percent from last year.

“AMOLED growth is based on several factors, including soaring smartphone OLED display shipments, growth in OLED TV panel shipments, the expansion of OLED into tablet PCs and increased use in wearable devices, like Apple Watch. Flexible OLED is a key feature driving AMOLED revenues, especially given its higher ASP, attractive features and great value,” Hsieh said.

TFT LCD revenues in 2016 are expected to grow just over 1 percent, year over year, to reach $117.4 billion. The main reasons for the growth are further expansion of LCD TV features, such as larger display size, wider color gamut and further penetration of 4K UHD TV. These features will keep ASP rising; meanwhile, the emergence of the 4K displays for tablets, smartphones and desktop monitors will further increase ASP. Newer automotive displays, smart watches, public displays and other new applications will also add to TFT LCD revenue growth in 2016.

Applied Materials, Inc. today unveiled the Applied Olympia ALD system, featuring a unique, modular architecture that delivers high-performance ALD technology to manufacturers of leading-edge 3D memory and logic chips. The 3D device inflection is driving growth in ALD with demand for new patterning films, new conformal materials and lower thermal budgets. The Olympia system is well positioned to fulfill these requirements with uncompromising ALD performance, addressing industry needs with the process flexibility to precisely engineer and efficiently deposit a variety of low-temperature, high-quality films for multiple applications.

“Our Olympia system is a major technology innovation for the 3D device inflection,” said Dr. Mukund Srinivasan, vice president and general manager of Applied’s Dielectric Systems and Modules group. “The Olympia system overcomes fundamental limitations chipmakers are experiencing with conventional ALD technologies, such as reduced chemistry control of single-wafer solutions and long cycle times of furnaces. Because of this, we’re seeing strong market response with Olympia systems installed at multiple customers to support their move to 10nm and beyond.” 

The Olympia system’s adaptable modular architecture enables a uniquely flexible and rapid process sequence vital for controlling the more complex chemistries needed to develop the next generation of ALD films. Further, the modular designcreates complete separation of chemistries, eliminating the pump/purge steps of conventional ALD technologies for improved productivity. The combined advantages of the Olympia system offer a superior solution to conventional ALD systems and position the tool for widespread adoption.  

Applied Materials, Inc. develops solutions for the semiconductor, flat panel display and solar photovoltaic industries. 

Related news: 

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Applied Materials and Tokyo Electron terminate merger

4K LCD TV panel shipments continue to rise, driven by forces on both the supply side and the demand side. Shipments of 4K TV panels in April 2015 exceeded 3 million units for the first time, comprising 14 percent of all TV panels shipped globally during the month, according to IHS Inc. (NYSE: IHS), a global source of critical information and insight. Of all TV panels forecast to ship in 2016, one in five is forecast to be a 4K TV panels, sometimes marketed as ultra-high definition (UHD), due to the trend toward higher resolution panels in the high-end TV segment and improved production efficiency of panel makers. 

“Prices for 4K TV panels continued to decline in 2014 and early this year, causing a rise in their adoption,” said Linda Lin, senior analyst, IHS Technology. “Most global TV brands have now launched 4K UHD products and are introducing more 4K models to their television offerings.”

When AU Optronics (AUO) introduced the first 55-inch 4K TV panels in Taiwan in 2012, fewer than 100 units were shipped each month. That same year, Innolux introduced the first 50-inch 4K TV panels; however, due to higher manufacturing costs, shipments still totaled fewer than 10,000 units per month. In 2013, panel makers managed to improve their 4K TV panel yield rates, but shipments still made up less than 2 percent of all TV panels shipped, according to recent data from the IHS Monthly TFT LCD Shipment Database.

After panel makers instituted aggressive promotions in the Chinese TV market, using 4K resolution of 3840 pixels by 2160 pixels as a point of differentiation in the high-end TV market, 4K TV panel market share reached 8 percent. Red-green-blue-white (RGBW) 4K sub-pixel technology is now widely accepted in the Chinese TV market and has even begun to penetrate the global market.

“While panel makers in Taiwan initially developed and stimulated 4K TV panel production, South Korean panel makers are now leading the 4K TV panel market,” Lin said. “In fact, LG Display and Samsung Display have risen to become the largest global manufacturers of 4K displays.”

The IHS Monthly TFT LCD Shipment Database provides the latest panel shipment numbers from global large-area panel makers. The database includes monthly shipments of all major TFT LCD suppliers, detailing revenues and average selling prices, as well as shipments by unit, display area, application, size and aspect ratio for each supplier.