Category Archives: FPDs and TFTs

C3Nano, Inc., a developer and supplier of solution-based, transparent conductive inks and films announced today that it has entered into a partnership with Kimoto, Ltd. Japan. This alliance has important commercial implications for the future of the display and touch sensor industry. The two companies will cooperate in delivering transparent conductive films into the fast-growing flexible display and touch sensor market.

As a global market leader in roll-to-roll, hard-coated films for the display and touch panel industry, Kimoto, Ltd. offers a wide variety of innovative products to protect and optimize the use of devices in touch screens and display applications.  “Our company is excited to have a great partner such as Kimoto to collaborate with, especially since they are the industry leader in hard-coated films,” said Cliff Morris, CEO of C3Nano, Inc.

“This alliance responds to the industry’s unmet need to deliver 50 Ohms per square films at far less than 1 percent haze.  We can deliver that product today at high volume.”

As a result of this relationship, C3Nano is positioned to be a complete solution provider to the flexible display, touch panel, and OLED industries.

Founded in 2010 as a spinout from Professor Zhenan Bao’s chemical engineering laboratory at Stanford University, C3Nano is the developer of the solution-based, transparent conductive inks and films as direct replacements for indium tin oxide (ITO).  C3Nano has raised more than $20 million in funding to date, which has enabled the company to quickly achieve ink formulations and expanded production capabilities.

Kimoto, headquartered in Saitama, Japan, is a developer of processing optical hard-coated films for the display, touch and auto industries.  Their films are used in the production of many high quality displays and touch panels used in mobile phones, tablets, computers and navigation systems.

Large-area TFT LCD display panel suppliers enjoyed moderate growth in shipments, revenue and display area in 2014 as the market demand for key applications grew. Year-over-year shipments of 9-inch and larger panels increased 4 percent (721 million units), while overall display shipment area grew 13 percent, according to the latest Quarterly Large-Area TFT Panel Shipment Report from IHS (NYSE: IHS). Overall large-area TFT LCD display revenues grew 2 percent, reaching $74.4 billion in 2014.

“The double-digit increase in large-area TFT LCD panel area last year was mainly driven by increasing consumer demand for larger televisions, 4K TVs and high-end monitors,” said Yoonsung Chung, director of large area display research for IHS Technology, formerly DisplaySearch. “The notebook PC market rebound, which began in the second quarter of 2014, also aided large-area display growth.”

Overall shipment area of 40-inch-and-larger panel sizes increased 34 percent in 2014, compared to the previous year. Year-over-year notebook PC display unit shipments increased 8 percent, and revenues grew 16 percent; however, 9-inch-and-larger tablet LCD panels suffered from weaker demand, which slowed year-over-year unit growth to 1 percent and caused revenues to decline 6 percent.

2015 TFT LCD Forecast

Panel makers are projecting similar TFT LCD shipment trends in 2015, with overall large-area display shipments expected to grow just 1 percent and reach 729.5 million units. Revenue growth and area growth for this category, however, are forecast to reach 6 percent and 8 percent, respectively.

TFT LCD image

 

Total LCD TV panel shipments are expected to increase 3 percent in 2015, to reach 260.5 million units; shipment area will grow 8 percent, from 113 million square meters last year, to 123 million square meters in 2015. The importance of 4K in the TV market will continue in 2015, reaching more than 40 million units, comprising 15 percent of total LCD TV unit shipments, and more than doubling the 7 percent market penetration in 2014.

Growth in notebook PC and mini-note panel shipments will be flat in 2015, reaching just 198 million units.

“Lackluster sales are forcing panel makers to begin upgrading to FHD and other high resolution formats, and to adopt flat light guide plates in the backlight for ultra-slim panels, in hopes of raising profit margins,” Chung said.

IHS forecasts that 9-inch-and-larger TFT LCD tablet PC panel shipments will decline 11 percent in 2015 versus the previous year. The primary cause of this decline is that Samsung has started to adapt OLED panels for tablet PCs, which will negatively influence the overall TFT LCD market this year.

LCD monitor panel shipments are expected to grow 8 percent in 2015, to reach 168 million units. “Due to larger sizes, technology improvements and low depreciation in old fabs, the profit margin for monitor panels was solid last year, which is leading panel makers to plan more monitor shipments this year,” Chung said.

Year-over-year public display unit shipments grew 44 percent in 2014, with the retreat of plasma display panels (PDPs) and stronger momentum for the digital signage category. IHS expects public display unit shipments to increase 7 percent in 2015.

Global mobile phone display module shipments in 2015 are expected to rise just 4 percent year-over-year to reach two billion units, leading to even stronger competition among mobile phone display manufacturers. According to a new report from IHS, Chinese display module makers have resolved to increase their share of global mobile-phone display shipments. In fact in the third quarter (Q3) of 2014, BOE unseated Samsung Display to become the leading global mobile phone display module supplier.

“BOE has benefitted not only from Samsung’s LCD outsourcing strategy, but also by aggressively developing direct relationships with Chinese mobile phone makers,” said Terry Yu, senior analyst for small and medium displays and display technologies for IHS Technology, formerly DisplaySearch. “BOE, Tianma and InfoVision are all focusing their G5 capacity on the mobile phone market, placing strong emphasis on a-Si based mobile phone displays.”

Display module makers in China also intend to improve their market share in the high-end mobile phone display market. For example in 2014, BOE, Tianma and China Star attracted industry attention, when they announced their G6 LTPS investment plans. Truly, a local traditional Chinese LC module maker, also announced it was investing in G4 AMOLED manufacturing capabilities. “Until these capacities are ready in China, however, stronger competition in the high-end mobile phone display market will be primarily centered on panel makers in other parts of Asia, especially among Japan Display, Sharp, and Samsung Display, all of which have aggressive plans for the Chinese smartphone market in 2015,” Yu said.

Reacting to lowered demand for handsets, OLED module makers have been aggressively promoting AMOLED products in China, but they still face competitive pricing pressure. For example, the average price for 5-inch HD (1280 x 720 294 PPI) AMOLED modules in China’s open market, excluding cover glass and lamination cost, has fallen from $43 in the first quarter (Q1) of 2014 to $25 in the Q1 2015; however, 5-inch HD display modules are widely used in handsets with high cost-performance (CP) value ratios, with retail prices that vary from $95 (599 CNY) to $160 (999 CNY). With increased competition, low-end high-CP value handset prices are expected to fall as low as $80 (499 CNY) in 2015, so $25 AMOLED module costs will still face bill of materials (BOM) cost-control challenges.

On the other hand, in order to differentiate their products, local Chinese brands plan to adopt FHD (1920 x 1080, normally over 400 PPI) displays on the higher-end of high-CP value handsets, with average prices of $160. In fact, local smartphone brand Meizu has already launched its first sub-brand handset, Noblue Note, which is equipped with a 5.5-inch FHD display, selling for $160 (999 CNY). According to Yu, “the pricing pressure of these FHD displays will lead to the even more intense competition among FHD resolution display module makers in 2015.”

“Local Chinese brands are now simplifying their handset models, in order to achieve better revenue performance,” Yu said. “Larger orders for each handset model will drive stronger competition among leading global panel makers.”

IHS_Mobile_Phone_Display_Shipment_Forecast_150304--DS_colors

Leading global TV brands, Samsung Electronics, LG Electronics and Sony, gained market share and increased their year-over-year shares of LCD TV shipments by an average of 11 percent in 2014, which is higher than the market average. According to IHS (NYSE: IHS), the top three TV brands purchased more than one third (37 percent) of the total global TV panel supply in 2014, and they will continue to increase their share this year. Overall, the top three brands are expected to grow their LCD TV shipments 16 percent, year over year, to reach 110 million units or 42 percent of all TV panel shipments they want to secure from their suppliers in 2015.

“Based on very optimistic shipment targets, the panel-allocation dominance of these three companies — and Samsung, in particular — will be even more pronounced, which will put more competitive pressure on smaller competitors,” said Deborah Yang, display supply chain research director for IHS Technology, formerly DisplaySearch. “The three leading TV manufacturers will, therefore, have greater influence over the global panel supply this year, causing panel makers to list them as first priority customers.”

In the LCD TV industry, the companies controlling panel allocations during a shortage will garner the most market share. Companies that purchase panels at competitive prices during an over-supply can also save on costs, which helps raise profits. TV makers also prefer a shortage to an over-supply, because a shortage can stimulate consumer purchases; in an over-supply situation, prices fall quickly, which encourages consumers to postpone purchases, while they wait for even better bargains.

“For Samsung, LGE, and Sony, it makes sense to obtain large allocations and make the market tighter, especially when they dominate purchasing and can influence panel allocations,” Yang said. “Meanwhile, panel makers are encouraged to support them, because they must look for long-term winners, rather than just supporting smaller, niche players.”

The top three TV brands’ influence over certain panel sizes will also increase this year, according to the Quarterly LCD TV Value Chain & Insight Report from IHS. Based on 2015 LCD TV manufacturers’ business plans, the top three players will make up more than half of all panel allocations for six of the most popular panel sizes; if there are shortages, other TV manufacturers may have difficulty obtaining allocations for these sizes. “For 48-inch, 49-inch and 58-inch sizes, in particular, the purchasing power of the three TV market leaders is very strong,” Yang said. “As the largest companies’ panel allocations become even bigger, smaller players could be forced to take a niche approach or be squeezed out entirely.”

SmartKem, supplier of the market-leading tru-FLEX semiconductor platform, has announced an extensive collaboration programme with the Centre for Process Innovation (CPI) for the development of pre-production prototypes featuring the SmartKem unique range of semiconductor inks for the manufacture of ultra flexible thin-film transistors (TFT). The three year agreement will see a scaling-up of SmartKem activities; driving customer development programs for the manufacture of unbreakable and foldable displays and electronics.

Headquartered in Wales, SmartKem is a provider of semiconductor inks for the manufacture of truly flexible transistors for flexible displays and electronics. The SmartKem tru-FLEX inks offer, for the first time, transistors with outstanding electrical performance, unparalleled physical flexibility and the chance to manufacture at room temperature onto any surface type.  As such, electronic TFT arrays can be printed at low cost with extremely high throughput, making tru-FLEX technology the leading candidate for the manufacture of new form factor consumer devices such as bendy smartwatch displays and foldable mobile phones.

“This collaboration supports our on-going activity of delivering tru-FLEX to meet market demand,” said Steve Kelly, CEO of SmartKem Ltd. “We have established the potential of the technology and proven its position as a total technology solution over competing TFT materials. Now in conjunction with our customers, we’re moving towards manufacturing pre-production demonstrators. We have a long established track record of development work with CPI since SmartKem was founded in 2009. It has proven invaluable to have access to such a well equipped facility that offers us the ability to validate our technology in a confidential environment. We are very excited to have secured a long term agreement with such a high profile industry partner.”

Nigel Perry, CEO of CPI commented, “at CPI we are committed to providing leaders in the field of flexible electronics, like SmartKem, with a means to develop their technology safe in the knowledge that we are an independent development partner. Having a centralised facility offers customers the ability to develop and test prototypes at our labs and focus on what they do best. Having created such a significant uptake in the market, we are excited to be able to support SmartKem in transferring its landmark tru-FLEX technology platform into their pre-production pipeline; ultimately enabling ultra-flexible display technology.”

In August 2014, SmartKem also announced the receipt of Series A funding from an investment syndicate including BASF Venture Capital, Finance Wales, Octopus Investments and Entrepreneurs Fund. This new industrial partnership with CPI will directly support SmartKem in fast-tracking its customers’ pre-production development with the tru-FLEX technology platform.

The Centre for Process Innovation, based in the UK, is an independent technology innovation centre which forms part of the High Value Manufacturing Catapult. It provides innovators with the tools and manufacturing facilities to develop and prove their technologies and to build prototypes and refine processes with minimal financial risk and complete confidentiality. By testing products and manufacturing processes in the CPI labs and manufacturing pilot lines, companies can validate their technology prior to transfer to customer pilot lines and full scale production.

Even as smartphone panel resolution continues to rise, and as display sizes continue to grow, panel manufacturers are facing pressure to reduce prices. According to the Quarterly Mobile Phone Display Shipment and Forecast Report from IHS, a global source of critical information and insight, total mobile phone display shipments are estimated to reach a new record high of 2 billion units in 2014. Average smartphone display prices declined nearly 14 percent year-over-year (YoY) from $22 per module in 2013 to $19 in 2014. IHS Technology forecasts another double-digit fall for smartphone display prices in 2015, resulting in a blended ASP of about $17.

“While smartphone display resolution and sizes reach new milestones, panel makers are still being challenged to reduce display module prices,” said Terry Yu, analyst for small and medium displays and display technologies for IHS Technology, formerly with DisplaySearch. “Shipment and manufacturing of panels using various display technologies like a-Si, Oxide, LTPS and AMOLED continues to rise, while pricing continues to decline. The sharpest smartphone average panel price declines occurred in 2014, and this trend of double-digit declines is expected to continue in 2015.”

Panel makers (like Tianma, BOE, InfoVision, and Japan Display Inc. (JDI) via their subsidiary TDI) are all promoting their products to Chinese smartphone makers with aggressive pricing strategies. Chinese smartphone makers are agile enough to use economies of scale and their strong market position to better negotiate display prices. On the supply side, LTPS LCD manufacturing capacity is increasing in all regions. Taiwanese panel suppliers are aggressively shifting production of smartphone panels to Gen 5 fabs, as well. These factors are adding pressure to reduce prices.

According to the Monthly Smartphone and Tablet PC FPD Pricing Report, 5-inch LTPS TFT LCD FHD (1920×1080) smartphone panels with IPS/FFS LCD technology, experienced a decline of 30 percent YoY, from $30 in December 2013 to $21 in December 2014. “Smartphone ASPs will continue to drop substantially in the first quarter of 2015, which is a traditionally slow season for smartphone display panel purchasing,” Yu said.

ihs smartphone displays

The 5-inch 720 HD (1280×720 pixels) module is the most popular smartphone display size in China, helping the format to gain over 40 percent market share in the market global 5.x-inch space during 2014. “Most brands are promoting low-priced, high-specification models with these displays, especially on e-commerce platforms,” Yu said. “China is the major battlefield for 5-inch smartphone displays. Demand for these displays is very strong, but they face strong competitive price pressure in the set market.”

In China’s open market, prices for 5-inch 720HD panels declined significantly to just under $12 in December 2014. Business agreements aside, market pricing for low-specification 5.x-inch panels is expected to decline to about $11 by March 2015. Prices of some low-grade specifications panels (lower brightness requirement) could decline to below $10 by the same period.

Due to the booming demand for LTPS LCD in China, panel makers are expected to continue expanding their LTPS manufacturing capacities & shipment.

“By the end of 2016, new fab investments by AUO, BOE, China Star, Tianma, and Foxconn will result in at least five Gen 6 LTPS fabs running in China and Taiwan, which may induce more pressure to reduce smartphone ASPs in the future,” Yu said.

Another price-reduction pressure in the smartphone display market comes from aggressive smartphone end-market pricing by Chinese smartphone brands. According to the Monthly Smartphone and Tablet PC FPD Pricing Report, after the introduction of the iPhone 6 Plus with its 5.5-inch FHD display, more Android-based premium models are expected to come equipped with wide-quad high-definition (WQHD) (2560×1440) displays driving FHD models down into the mid-range segment with lower pricing.

On December 23, 2014, Meizu, a rising brand in China, introduced its new “No Blue Note” smartphone, which was equipped with a 5.5-inch FHD display from Taiwan, which sells for just CNY 999 ($161). This model and pricing has been cited by many in the industry as a warning for upcoming price competition in 2015. “Facing ASP pressures, display cost reduction will be the top priority for the panel makers, especially through more effective production yield rate management and improvements in component performance,” Yu said.

By Jeff Dorsch, Contributing Editor

Applied Materials on Wednesday reported that its proposed merger with Tokyo Electron Ltd. (TEL) is still under way, without giving a deadline or expected date of conclusion.

President and CEO Gary Dickerson said the company is “making progress with regulators” and plans to “complete the merger as soon as possible.” He declined to elaborate on that point, on advice of its attorneys.

Applied and TEL teams are working together to fulfill “the strategic opportunity this merger creates,” Dickerson said.

For the fiscal first quarter ended January 25, Applied received orders of $2.27 billion, up 1 percent from the fourth fiscal quarter and down 1 percent from a year earlier. The company posted sales of $2.36 billion, an increase of 4 percent from Q4 and up 8 percent from a year ago. Net income was $338 million, up 21 percent from the previous year’s $279 million.

“Major technology inflections in semiconductor and display are creating new growth opportunities for Applied`s precision materials engineering products and services,” Dickerson said in a statement. “With focus and execution, we are gaining momentum toward our long-term strategic goals, and this progress will be accelerated by our planned merger with Tokyo Electron.”

Applied forecasts sales in the second fiscal quarter will be flat to up a couple of percentage points from Q1. Dickerson said memory chips will drive demand for equipment in the fiscal first half, and the second half will see growth from foundries placing orders for equipment to be used in producing devices with FinFETs.

Rapidly growing North American quantum dot manufacturer Quantum Materials Corp today announced it has begun shipping Cadmium-free red and green quantum dots in evaluation and production quantities to select consumer electronics manufacturers. The company has increased the uniformity and enhanced stability of its Cadmium-free nanomaterials as a result of bringing previously-reported automated capital equipment, facility and personnel investments online. Quantum Materials is at the forefront of Cadmium-free quantum dot development and recently announced increasing production capacity to 2000Kg of quantum dots and nanoparticles per annum in Q2 2015.

Meetings with manufacturers at the 2015 Consumer Electronics Show (CES) spurred requests for Cadmium-free red and green quantum dots with application-specific functionality. Quantum Materials has accelerated Cadmium-free quantum dot development because electronics manufacturers’ are seeking to stay ahead of environmental regulations governing dangerous materials in consumer electronic devices. Quantum dots are easily integrated into the industry-standard thin-film roll-to-roll inkjet and surface deposition technologies currently used in existing LCD display production lines, as illustrated in an informative video detailing Cadmium-free quantum dot uses and benefits.

“We were very encouraged with the results of our meetings at CES,” said Quantum Materials Corp CEO Stephen Squires. “I personally am even more pleased with the dedication, hard work and creativity of our team. Their discoveries have enabled us to meet the stringent demands and tight delivery deadlines necessary to rapidly integrate our materials into commercial products.”

The U.S. leads the world in nanotechnology innovation with over $30 billion invested in research to date. Quantum Materials is working with manufacturers toward integrating its advanced materials into commercial products that will create jobs, generate profits, and strengthen our economy and balance of payments.  The limited industrial availability of a reliable supply of Cadmium-free quantum dots has attracted the interest of the world’s largest display and solid-state lighting manufacturers in evaluating Quantum Materials mass-production capability.  Quantum Materials’ products are the foundation for technologically superior, energy efficient and environmentally sound LCD UHD displays, the next generation of solid-state lighting, solar photovoltaic power applications, advanced battery and energy storage solutions, biotech imaging, and biomedical theranostics.

The announcement by GTAT and Apple in late 2013 of a more than $1 billion combined investment to set up the largest sapphire crystal growth facility in the world had raised hopes that adoption of sapphire in smartphones would rapidly reach a massive scale, with Apple setting up the pace and forcing its competitor to follow suit. Various second tier cell phone OEM upped their efforts in sapphire-related developments and tried to beat Apple by announcing or introducing smartphone models with sapphire display covers ahead of the highly anticipated iPhone 6 announcement. This prompted various sapphire manufacturers in China to announce plans for significant capacity increases to serve this new market.

“After a 2014 year full of hopes, the sapphire industry is entering 2015 with a lots of uncertainties,” analyzes Dr Eric Virey, Senior, Technology & Market Analyst, Yole Développement (Yole). “Following a long period of depressed pricings and stagnating revenue, 2014 started with a welcome price recovery that lifted up the spirit of many industry players. But most of all, it was the prospect of a new killer application that had given reasons for optimism,” he adds.

But the news that the iPhone 6 would not use a sapphire display cover, shortly followed by GTAT bankruptcy sent shockwaves in the industry and raised many questions:

  • Is Apple still interested in sapphire and will the display cover glass opportunity ever materialize in a large scale?
  • Is the technology ready?
  • What will happen to the more than 2000 high capacity furnaces installed by GTAT and Apple?
  • Are other cell phone OEM still considering sapphire?
  • Can traditional applications such as LED or watch windows sustain more than 100 manufacturers?
  • Could other applications emerge soon? If not how will consolidation affect the industry?
  • Will China eventually dominate the sapphire industry?

GTAT and Apple

Yole analysts have been tracking the sapphire market for more than a decade. Their analysis is presented in the yearly technology & market analysis: Sapphire Applications & Market: from LED to Consumer Electronic and Sapphire Applications, Touch screens, displays, semiconductor, defense and consumer.

“The last 6 month events are shaking the sapphire industry,” comments Eric Virey from Yole. He adds: “Today, several points remain under questions: is the display cover application dead on arrival? What is Apple’s strategy regarding sapphire? Can the market absorb the more than 2000 high capacity GTAT furnaces now for sale.”

Under this context, Yole, the “More Than Moore” market research, technology and strategy consulting company, proposes to exchange and debate during the 1st International Forum on Sapphire Market & Technologies, on September 3rd, 2015. This Forum is hosted by CIOE. It will take place in Shenzhen, alongside the 17th China International Optoelectronic Expo 2015.

Both partners have set up a high added-value program including sessions on: sapphire market, technologies and supply chain – established and emerging sapphire applications – crystal growth – manufacturing technologies… The forum will wrap up with a round table with leading industry players and experts to discuss the future of sapphire technologies and markets.

“This 1st International Forum on Sapphire Market & Technologies is a must for all sapphire industry managers as well as for sapphire users in order to network and learn about all the latest industry trends,” comments Eric Virey.

The Yole & CIOE sapphire forum will bring together a world class panel of experts. It will allow participants to get valuable insights into the status and future of the sapphire industry. Moreover, the Forum will provide unprecedented opportunities for meetings with industry leaders.

Once focused on unit growth, the entire global flat-panel display (FPD) industry is now shifting to focus on area-demand growth. According to IHS (NYSE: IHS), the leading global source of critical information and insight, display panel shipments for all FPD applications grew 9 percent, year over year, to reach 168.9 million square meters in 2014. Total FPD display area demand is expected to grow at a compound annual growth rate (CAGR) of 5 percent from 2012, reaching 223.6 million square meters in 2020.

“The trend toward bigger displays continued in the flat panel display industry in 2014,” said Yoshio Tamura, director of display research for IHS Technology, formerly with DisplaySearch. “There were four major driving forces leading to a strong upgrade of the average FPD display sizes: consumer demand for larger LCD TVs, soaring demand for 5-inch-and-larger smartphones, larger automotive display screens, and larger tablet PCs.”

The annual area growth demand rate for major FPD applications in 2015 is forecast to reach 5 percent, which is down from 9 percent in 2014. Slowing growth is mainly caused by the maturity of some FPD applications, and a slowdown in the trend toward larger size screens for LCD TVs and smart handheld devices.

“New TV sizes launched by LCD and OLED panel makers mean that consumers now have more chances to trade up to larger sizes,” Tamura said. “For smartphones, especially in the Chinese market and developing countries, bigger screens have been triggered by higher resolution requirements, longer battery life, and shifts in user behavior.”

Apple, HP, Lenovo, Acer, ASUS and other mobile PC brands have begun to launch products with larger screens. New operating systems and convertible form factors are leading to displays growing from 10 inches to 12.9 inches in 2015, which will also add to FPD area demand.

For each FPD product category, IHS noted several reasons for the increase in the total FPD area base, including the following:

  1. LCD TV – 4K, 8K, ultra-slim type, slim bezel, better picture quality by wider color gamut and dynamic contrast ratio, new sizes launched by the panel makers, new smart TV platform
  2. Smartphone – higher resolution, slim design, bezel-less design, abundant ecosystem, component integration
  3. Mobile PC – higher resolution, better screen performance with the introduction of OLED, entry into the commercial and educational market
  4. Automotive – better user interface and touch performance, growing numbers of hybrid energy and electronic cars equipped with a larger and better screens, full dashboard digitalization, demand for bigger central information displays (CIDs), and the introduction of advanced driver assistance systems (ADAS) for smart cars

The Quarterly Worldwide FPD Shipment and Forecast Report covers worldwide shipments and forecasts for all major FPD applications, including details from more than 140 FPD producers, covering more than 10 countries.