Category Archives: Displays

May 3, 2012 — Tablet PC shipments are expected to grow from 81.6 million units in 2011 to 424.9 million units by 2017, according to NPD DisplaySearch, overtaking notebook PCs. This rapid growth comes with diversification, in hardware like displays and in software like operating systems (OS).

Component manufacturing capacity is being increased to meet this new market demand. Many display manufacturers are transitioning tablet panel production to larger plants, including Gen 6 and Gen 8, which will lead to greater capacity for tablet displays, as well as lower prices. In addition, the share of AMOLED displays in tablets is forecast to increase from 3% in 2012 to 30% by 2017.

Also read: Media tablets join top 5 semiconductor end-markets in 2012

Figure. Worldwide tablet PC emerging and mature market shipment forecast. SOURCE: Q1 2012 NPD DisplaySearch Tablet Quarterly report.

 

The young market has been “dominated” by Apple’s iPad and similarly configured tablets from competitors, said Richard Shim, NPD DisplaySearch senior analyst.

NPD DisplaySearch expects retailers, brands, and consumers to experiment with emerging tablet opportunities. Increased investments in the tablet supply chain — amidst a lull in the growth of other device categories — will lead to more opportunities for new technologies to challenge incumbents. A key area where there is room for differentiation is operating systems, with Android taking share from iOS. Windows RT will also grow, but from a very small base.

NPD DisplaySearch’s Tablet Quarterly report tracks quarterly changes in tablet PC products and strategies, and forecasts the impact of those changes on the market. It covers the changing landscape of screen sizes, features that are expected to be included and excluded in future tablets, and operating systems. NPD DisplaySearch is a global market research and consulting firm specializing in the display supply chain, as well as the emerging photovoltaic/solar cell industries. Internet: http://www.displaysearch.com/.

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May 3, 2012 — The top 3 large-area LCD polarizer makers — LG Chem, Nitto Denko, and Sumitomo Chemical — are widening their market share (area basis) lead over other makers, achieving 77% market share in 2011, according to Displaybank’s Polarizer Market and Industry Trend Analysis report. Displaybank is now part of IHS. This 3-leader market dynamic will continue for some time, Displaybank reports.

LG Chem held the top ranking, with 27.4% market share. This is down from LG Chem’s 30.7% market share in 2010. Nitto Denko had 25.9% market share in 2011 (27.3% in 2010); Sumitomo Chem. held 23.6% (22.5% in 2010).

Figure. Large-area TFT-LCD polarizer market share by maker (area basis) in 2011. SOURCE: Displaybank “Polarizer Market and Industry Trend Analysis.”

LG Chem has a stable customer in LG Display, and benefits from high TV and monitor polarizer demand. LG Chem has entered the 3D film-patterned retarder (FPR) market, pulling from its polarizer expertise and exclusively supplying more than 98% of the global FPR market. The company is beating out DNP of Japan for FPR business.

Nitto Denko and Sumitomo Chemical both increased tablet PC and smartphone polarizer segments in 2011, and are focusing on developing and supplying AMOLED TV polarizer.

Polarizer prices fell in 2011, with TV polarizer costs especially dropping 1-2% from 2010 levels. Sluggish demand from Europe and North America contributed to the price decline.

Displaybank forecasts that 2012 large-area TFT-LCD polarizer demand area will hit 317.6 million square meters, increasing by 5% year to year (Y/Y). However, prices will fall 5% Y/Y, making the revenue forecast $7.642 billion.

IHS (NYSE: IHS) provides information, insight and analytics in critical areas that shape today’s business landscape. Learn more at www.ihs.com or visit www.displaybank.com.

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May 1, 2012 — French research organization CEA will extend its collaboration with chemical company Arkema beyond photovoltaics into microelectronics and organic electronics, setting up two joint public-private research projects in CEA-Leti and CEA-Liten.

The partners will develop ultra-high-performance materials and manufacturing processes to grow the leading-edge electronics sector in France. Arkema will nanostructure polymers to produce new materials that optimize performance and cost of next-generation silicon components. CEA researchers will share expertise in microelectronics development processes. The CEA-Leti (Laboratoire d’Electronique et de Technologie de l’Information) will focus on microelectronics and information technologies. CEA-Liten (Laboratoire d’Innovation pour les Technologies des Energies Nouvelles et les nanomatériaux) will study new energy technologies.

Also read: CEA-Leti Annual Review: The heart of Europe’s semiconductor industry challenges

Arkema will bring a group of technical polymers (fluorinated, piezoelectric, nanostructured thermoplastic polymers) to Liten to meet the technological challenges of the large-area printed electronics sector (flexible screens, intelligent packaging and textiles, photovoltaic panels). The aim is to improve system lifetimes, manufacturing costs, and integration of several functions onto a single support. The use of organic materials opens up a new field of printable, transparent and flexible components that can be integrated into large-area printed electronic products.

The partnership will help develop new materials for lithography and organic electronics manufacturing, said Christian Collette, VP of research & development at Arkema. Microelectronics are a new focus of research for Arkema.

Leti is an institute of CEA, a French research-and-technology organization with activities in energy, IT, healthcare, defense and security. Leti specializes in nanotechnologies and their applications, from wireless devices and systems, to biology, healthcare and photonics. NEMS and MEMS are at the core of its activities. For more information, visit www.leti.fr.

Arkema is a global chemical company. Learn more at http://www.arkema.com/.

May 1, 2012 — LCD panel shipments to Chinese TV makers peaked in December 2011, fell sharply in January 2012, and recovered in February, shows the NPD DisplaySearch MarketWise-LCD Industry Dynamics report. In February, shipments to Chinese TV makers from DisplaySearch’s surveyed panel makers reached 3.75 million units, up 18% month over month (M/M).

Panel shipments to Chinese TV makers are estimated to have grown seasonally 24% in March and 2% in April, affected by May Day holidays. In April, the supply chain’s production and inventory build-up is expected to have stopped. Chinese TV makers’ demand for panels will therefore fall 13% and 8% M/M in May and June, respectively.

Supply constraints were caused by low yields on new models, and adoption of new production technology at panel makers, not recovering demand in the market. Panel makers also rearranged panel capacity, and TV makers asked them to build production for new models.

There is little margin for price declines, according to TV makers, with some reporting that panel prices have reached bottom. April is expected to show a price hike for TV panels, depending on price negotiations, and interactions between Chinese TV makers and leading TV makers with their captive panel suppliers.

Figure. LCD TV panel shipment to China TV makers (millions). SOURCE: NPD DisplaySearch MarketWise-LCD Industry Dynamics.

Chinese TV brands have been cautious about building up production or stocking more panels, keeping inventory levels at about 5-6 weeks of TV sets and 7-10 days of panels on hand. Inventories have stayed at these levels even with slower domestic demand during the last two months. Most Chinese TV makers surveyed by DisplaySearch believe they can get the display panels they need from suppliers, excepting 42” and 47” and certain other models that are forecast to have supply constraints in April.

The latest industry survey shows that some panel makers have further lowered their shipment plans for Q2’12 more than once. Shipment plans for March were up a modest 2%, but DisplaySearch sees them decreasing by 1-3% in April and May. Panel makers also need to reduce their shipment plans to better react to soft demand and avoid inventory problems. This industry-wide adjustment helps stabilize supply and demand throughout the forecast months.

The two major Korean panel makers reduced their shipment targets for April and May, expressing concern about overall demand in China. This is in contrast to the forecast changes at Taiwanese panel makers. There may be fewer subsidy programs this year, and the home appliance to rural program will be the only one left in China. The decreased forecast is also a result of competition and the Korean panel makers’ business strategies (e.g. open cells) involving Chinese TV makers.

Chimei Innolux will continue to lead in panel shipments, and has significantly increased its shipment forecast for the next 3 months. Despite its increased targets, Chimei Innolux shows a clear seasonal trend in the Chinese market. Their shipments grew 30% M/M in February, and they are estimated to have peaked in March with a 24% M/M increase. Chimei Innolux will maintain this high level of shipments in April before seeing declines of 20% and 17% M/M in May and June, respectively.

LG Display does not have a positive view of Chinese demand and expressed concern that inventory might become an issue in Q2 2012. LG Display’s Q2 2012 shipment plan for China is conservative, and the company is not supporting an open-cell business for its external TV customers. At the same time, LG Display faces competitive pressures from Taiwanese panel makers on the new sizes: 29”, 39”, and 50”.

Samsung increased its TV panel shipments slightly in March. The company forecast that monthly shipments would trend downward in Q2 2012. It is projecting a low forecast for shipments to the Chinese market, especially in June. The target for June shipments is even lower than the record low that occurred in January. DisplaySearch’s industry checks revealed that TCL, Samsung’s major Chinese local TV customer, will reduce its panel procurement to support CSOT, its captive panel vendor. Despite the risk of losing some business from Chinese TV customers, Samsung expects an increase of business from its captive and strategic customers in Q2 2012. Samsung may implement its aggressive business strategy as planned, sending open-cells to China this year.

AUO plans to ship more in March, but capacity constraints and yield rate issues limit AUO’s panel output. On the demand side, AUO reported that some Chinese TV customers were adjusting inventory and pushing shipments back to April.

BOE failed to meet its shipment targets for January and February, but the company still plans to increase its shipments throughout the forecast months. BOE is focusing on the supply of 32” in particular, and there is concern about a supply imbalance for 32”, especially in the Chinese TV market. Currently, more than 55% of BOE’s panel shipments are to Chinese TV makers.

There is competition from China’s local panel makers. Recently, China’s Ministry of Finance officially announced changes to the import duties on certain products, which will be effective April 1, 2012. Among them is a duty on 32”+ TV open-cells. The duty on open-cells will be increased from 3% to 5%. According to our cost analysis, the increase might not be enough to force Korean and Taiwanese panel makers to build fabs in China. However, if domestic suppliers build more LCD TV panel fabs as planned, then the import duty might be increased further. For political and business reasons, foreign panel makers are considering building LCD fabs in China. Previous plans included building fabs, but current plans include the option of moving existing fabs. An argument against building new capacity is the overcapacity in the industry.

Access the report: MarketWise-LCD Industry Dynamics. DisplaySearch LLC, an NPD Group Company, is online at www.displaysearch.com.

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April 30, 2012 — The global market for flat panel TVs hit a plateau in recent years, causing flat panel display (FPD) manufacturers — especially liquid crystal display (LCD) makers — to look to commercial markets such as digital signage to increase sales and profits from their large-area FPD production.

Electronic menu boards, in-classroom interactive white boards (IWB), out-of-home digital advertising and other non-consumer uses for FPDs — collectively categorized as public displays (PD) or large-format displays (LFD) — have shown solid and steady growth in recent years, rising 65% in unit volume production from 2009 to 2011.

Also read: LCD prices, display advances enable more public digital signage

While the PD/LFD market generally continues to rise and LCDs continue to take over for plasma, Q4’11 witnessed the first sequential decline over the last three years in the LCD portion of this market. According to the recently released NPD DisplaySearch Quarterly FPD Public Display Shipment and Forecast Report, the sequential drop in global shipments came in the least well-defined portion of this market, the 26-37” space. This is not the first sequential decline seen in the PD space, but most sequential declines in recent years have been from reduced plasma production, not from reduced LCD sales.

Figure. Worldwide FPD Commercial Public Display Shipments by Technology. SOURCE: NPD DisplaySearch Quarterly FPD Public Display Shipment and Forecast Report.

The commercial markets for larger-size FPDs remain small compared to the vast market for consumer TVs, but the complex nature of these B2B sales and the specialized nature of the displays produced specifically for these markets yield higher revenues and margins compared to commodity consumer applications.

On the surface, many of the displays used in commercial environments have similar specifications to their TV counterparts, especially in terms of size and resolution, but most are engineered for specific use in out-of-home environments. Many use more advanced materials in their design and production to meet the stringent needs of commercial installers. Such advanced materials include higher brightness backlights needed to overcome uncontrollable ambient light in open-air environments and unique liquid crystal material needed to minimize imagine sticking when static images are displayed. Others also offer advanced features such as uniform, super narrow bezels for video walls, network connectivity, interactive touch capabilities such as for white boards and even transparent capabilities.

“Commercial markets for flat panel displays, such as for digital signage, remain the jewel of the LCD industry,” noted Chris Connery, DisplaySearch Vice President of PC and Large Format Commercial Displays. “The challenge comes when trying to fully quantify these markets since many times installers use consumer-grade TVs for quick hang-and-bang solutions.”

The volume zone of the public display market still centers around the 32” category (same as the LCD TV market). The 26-39” segment, while being the largest, has also been the least defined segment of the public display sector. This market is largely filled with installations of consumer-grade TVs or with commercial-grade sets that use LCD TV panels. For this reason, many in the industry often disregard segments below 40” when trying to quantify the true market and/or its growth. While these gray areas below 40” showed a short-term downturn, quite noticeable in Q4’11 was the increased production share of very large-size displays. In particular, Sharp aggressively shipped out 70” panels to most efficiently utilize its Gen 10 capacity and to boost the interactive white board market.

Table. Global LCD public display unit shipments/growth. SOURCE: NPD DisplaySearch Quarterly FPD Public Display Shipment and Forecast Report.

Size Category

Q3’11

Q4’11

Q/Q Growth

26-39"

234,335

145,109

-38%

40-43"

174,263

166,736

-4%

45-47"

130,413

149,860

15%

50-65"

67,294

98,858

47%

70-99"

4,619

15,545

237%

Over 100"

20

10

-50%

Total

610,944

576,118

-6%

“Any sequential decline in unit volume shipments into commercial sectors is hardly cause for alarm, as it may be in consumer sectors,” notes Connery “This market is more project-based, with no seasonality. For example, Burger King is rolling out electronic menu boards across the country right now. The market and major projects rolling out globally all need to be monitored regularly to confirm market success.”

NPD DisplaySearch provides global market research and consulting, specializing in the display supply chain, as well as the emerging photovoltaic/solar cell industries. Learn more at http://www.displaysearch.com/.

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April 30, 2012 – BUSINESS WIRE — The global touch controller IC market is growing quickly, thanks to emerging natural user interface (NUI) devices and touchscreens’ rapid adoption in consumer electronics. In 2011, global touch controller revenue was only 0.4% of the total semiconductor industry’s $312.5 billion. In 2016, this share will increase to 1.65%.

Resistive- and capacitive-type touch panels were about 85% of the total touch controller IC market in 2011. Capacitive touch controllers will remain dominant, taking over about 55% of the total touch market in 2016.

Touch controller applications are broadly divided in to three segments: consumer, commercial, and industrial. Specific usage segments include retail, education, transport, medical, entertainment, and infotainment. In 2011, more than 80% of touchscreen controller IC revenues came from the consumer application segment, due to the huge volumes of touch-based mobile phones and tablets.

Also read: Touchscreen controller IC market tripling thanks to mobile devices

The demand for touch controller ICs from the Asia-Pacific (APAC) region should grow at a CAGR of 50% from 2011 to 2016. More than 60% of the product supply, however, comes from North America.

Access the report “Touch Controller IC Market Global Forecast & Analysis (2011 – 2016) by Technology, by Products Types, by Applications & by Geography” at http://marketpublishers.com/report/technologies_electronics/electronic_devices/touch_controller_ic_market_global_forecast_analysis_2011_2016_by_technology_by_products_types_by_applications_by_geography.html

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April 27, 2012 – BUSINESS WIRE — Multi-sensing touchscreen technology developer Neonode Inc. (OTC BB:NEON) was approved by The NASDAQ Stock Market LLC to begin listing its common stock on the NASDAQ Capital Market under the ticker symbol NEON, on May 1.

The NASDAQ listing will give “increased visibility” to Neonode, said its CEO Thomas Eriksson. The company’s zForce touch technology supports “multisensing,” will capabilities such as proximity-, pressure- and depth sensing, as well as object-size measuring. The technology suits devices like smartphones, tablets, toys and gaming consoles, printers and office equipment, e-readers and automotive or inflight infotainment systems.

Also read: Neonode enters consumer display sector with new licensing agreement and Neonode optical touch technology replaces resistive touch on office equipment line

Neonode’s customers include Sony, Barnes & Noble, Oregon Scientific, L&I, Daesung and Sonim.

Neonode Inc. (NEON) develops and licenses the next generation of proven optical MultiSensing technologies. For further information please visit www.neonode.com.

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April 27, 2012 — Active-matrix organic light-emitting diode (AMOLED) displays manufacturing is virtually 100% concentrated in Korea, according to Displaybank, with Samsung Mobile Display (SMD) and LG Display (LGD) scaling up capacity.

SMD began large-scale AMOLED production in 2008, and the market has expanded under SMD’s leadership, gaining adopters for smartphone displays and other 3”-4” displays.

AMOLED shipments are increasing dramatically, shows Displaybank’s report, “Korea AMOLED Light-Emitting Material Industry Analysis.” In 2011, SMD ramped a Gen-5.5 line. LGD nearly quadrupled its AMOLED production capacity since 2010, with a Gen-4.5 line coming fully on-line. In H1 2012, both companies plan to commercialize 55” AMOLED TVs. They are accelerating development with deposition equipment of 4~10K.

Also read: AMOLED displays draw attention on smartphone adoption

Figure. Korea’s AMOLED light-emitting materials market size. Includes HIL, HTL, R’, G’, EML(RGB) dopant/host, ETL, EIL, and CPL materials. SOURCE: Korea AMOLED Light-Emitting Material Industry Analysis, Displaybank, Nov 2011.

With the growth in AMOLEDs, related material markets — especially light-emitting materials — are seeing significant increases.

Displaybank’s “Korea AMOLED Light-Emitting Material Industry Analysis” report analyzes equipment trends, development trends, and the supply chains of Korean AMOLED panel makers. It analyzes the current state of Korea’s AMOLED light-emitting material industry through the analysis of domestic AMOLED common layer materials and market size of light-emitting materials, and competition analysis of each material. Learn more at http://www.displaybank.com/_eng/research/report_view.html?id=865&cate=10.

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April 25, 2012 — Cleanroom hardware — modular rooms, ceilings, floors, walls HVAC, mini environments, and instrumentation — will be a $4 billion market this year, shows Cleanroom World Markets, by the McIlvaine Company.

The three big purchasers of cleanroom hardware this year will be the semiconductor, pharmaceutical and flat panel industries. The semiconductor segment also includes photovoltaic cell manufacture. This industry is rapidly growing and is a major purchaser of cleanroom hardware.

Table. Cleanroom hardware purchases in 2012, by end-use industry.

Industry

($M)

Semiconductor         

623

Pharmaceuticals

621

Flat Panels

596

Memory Storage

541

Other Semiconductor

431

Other Industries

324

Cleanroom Supplies

289

Hospital

209

Medical

157

Food

138

Bioclean

53

Aerospace

20

          TOTAL

4,002

The biggest portion of the market will be in Asia. Almost all the flat panel manufacturing capacity is situated in this region. Most new semiconductor plants are being built in China, Taiwan, and Korea. The replacement hardware market in Japan is also significant.

The pharmaceutical, bioclean and hospital markets are still larger in the US and Europe than in Asia.

While hospitals are adopting isolation rooms, and cleanrooms for operating theaters and pharmacies, a semiconductor cleanroom still remains far cleaner than the average hospital.

As semiconductor nodes shrink, filter manufacturers and cleanroom designers must offer products that remove the smallest possible particles. While hardware can accomplish much of this, recent research shows that the cleanliness of a room is a function of the motion of the employees in the room. Also read: Entegris builds advanced filtration and contamination control R&D center for 2X, 1X semiconductor fab

“Mini environments” originated in the semiconductor industry but are now widely used in the pharmaceutical industry as well.

For more information on World Cleanroom Markets, visit http://www.mcilvainecompany.com/brochures/cleanroom.html.

April 25, 2012 — Touch sensors for displays grew to 66% to 9.6 million square meters in 2011, according to the NPD DisplaySearch Touch Sensor Manufacturing Capacity report. This includes resistive, projected capacitive, sensor-on-cover (SOC), and on-cell touch sensors. Touch sensors will continue growing, with 13.0 million square meters in 2012, and 16.4 million in 2014, says NPD DisplaySearch.

Figure. Touch sensor supply and demand. SOURCE: NPD DisplaySearch, April 2012.

By revenues, the touch panel industry grew from $4 billion in 2009 to over $13 billion in 2011. The market for touchscreen displays is strong, driven by mobile devices such as smartphones and tablet PCs, as well as PCs and point-of-information applications.

New display and color filter manufacturers, among other companies, are grabbing up market share in this rapidly growing display sector.

With rapid growth in resistive, projected capacitive, sensor-on-cover, and on-cell touch sensors, the industry’s development is under scrutiny, including the balance of supply and demand, how quickly sensor-on-cover projected capacitive touch can take share from conventional projected capacitive, and how on-cell and in-cell touch will impact add-on type touch screens, NPD DisplaySearch reports.

“Capacity in 2010 and 2011 was slightly higher — 13% — than demand, but this level of oversupply is healthy, given the rapid pace of growth in the touch industry,” said Jennifer Colegrove, Ph.D., VP, emerging display technologies for NPD DisplaySearch. “However, the glut is expected to more than double in 2012, to 27%, causing touch sensor prices to reduce rapidly. The oversupply will also force touch suppliers to move to larger size applications to utilize capacity, such as notebook and all-in-one PCs, ATM/finance and point of information,” Dr. Colegrove noted.

Resistive touch sensors were in oversupply in 2010. In 2011, most resistive touch manufacturers dramatically reduced their capacity; some converted their lines to projected capacitive touch. In 2012, resistive touch manufacturers continue to minimize capacity, leading to a balanced supply/demand outlook. While resistive continues to be strong in applications such as automotive, education/training, and industrial, it will slowly decline.

Projected capacitive touch manufacturing has increased dramatically, from 27 companies in 2009 to over 80 companies in 2011. Many projected capacitive suppliers are also establishing sensor-on-cover fabs.

SOC is forecast to grow fivefold (by area) in 2012. Due to its light weight and thinness, SOC is likely to be adopted in tablet and notebook PCs, including form factors such as sliding and convertible devices. Many leading touch module makers increased their cover glass capacity in 2011 in preparation for SOC production. NPD DisplaySearch forecasts SOC will capture an 8.6% share in 2012.

On-cell touch sensors are mainly used in AMOLED displays. In 2013, as large AMOLED fabs enter full production, there will be a significant oversupply (52%) of on-cell.

In-cell touch has been researched and demonstrated for many years, and in 2012, mass production will begin. Sony announced it is producing 4.3” in-cell LCDs. Synaptics is producing controller ICs for in-cell touch designs. As yield rates improve and tier one smartphone brands adopt the technology in 2013-2014, in-cell will experience strong growth.

Production of transparent conductive substrates (mostly ITO) for the four types of touch covered in the report will grow from 20.8 million square meters in 2011 to 30.9 million in 2014.

The Touch Sensor Manufacturing Capacity report includes information on nearly 100 fabs, including glass substrate generation, substrate size, substrate allocation, substrate input, yield rate, and yielded touch sensor area (in square meters). Transparent conductive substrate (ITO and ITO replacements) input information is also provided, and supply and demand for each of the four types of touch sensor is analyzed. NPD DisplaySearch surveyed over 60 suppliers of projected capacitive, sensor-on-cover, on-cell, and resistive touch sensors. The Touch Sensor Manufacturing Capacity report is a companion to the NPD DisplaySearch Touch Panel Market Analysis report, which profiles over 190 touch screen suppliers and analyzes each touch technology. NPD DisplaySearch is a leading global market research and consulting firm specializing in the display supply chain, as well as the emerging photovoltaic/solar cell industries. The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. For more information on NPD DisplaySearch analysts, reports and industry events, visit http://www.displaysearch.com/.

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