Large-area TFT LCD shipments grow by 42pc Q/Q in Q2’09

AUSTIN, USA: Results of the DisplaySearch large-area (10" and larger) TFT LCD survey for Q2'09, as reported in its Quarterly Large-Area TFT LCD Shipment Report, indicate that shipments reached 130 million units, strong growth of 42 percent Q/Q and 10 percent Y/Y (see Table 1).

Due to the increase in prices, large-area TFT LCD revenues grew 51 percent Q/Q, but were still down 29 percent Y/Y, to $15 billion. Strong market demand in Q2’09 led to a recovery in capacity utilization across all applications.

Table 1: Q2’09 Large-Area TFT LCD Shipments by Original Specification and Application (Millions)Source: DisplaySearch Quarterly Large-Area TFT LCD Shipment Report.
* Original specification indicates the panel specification at the time of shipment. Some panels specified for LCD monitors are used for LCD TVs.
** Includes 10.x”, 11.x” and some 12.0” panels used in mini-notes (also called netbooks)

DisplaySearch also revealed details of its survey of panel makers’ shipment targets for Q3’09 through Q2’10. Panel makers are increasing capacity utilization to respond to growing demand and targeting Q3’09 shipments of large-area TFT LCD panels of 152.8 million, up 18 percent from Q2’09 (see Table 2).

If panel makers reach their unit shipment targets, revenue growth is expected to be 32 percent Q/Q.

Table 2: Large-Area TFT LCD Shipment Targets by Original Specification and Applications (Millions)Source: DisplaySearch Quarterly Large-Area TFT LCD Shipment Report.
* Original specification indicates the panel specification at the time of shipment. Some panels specified for LCD monitors are used for LCD TVs.
** Includes 10.x”, 11.x” and some 12.0” panels used in mini-notes.

In Q2’09, Samsung Electronics led in large-area TFT LCD panel revenues, with sales of $4.2 billion, a 27.8 percent revenue share, according to DisplaySearch findings. LG Display was second, with $3.7 billion in revenues and a 25 percent sales share. AUO was third at $2.3 billion with a 15.7 percent share, with CMO closely behind at 15.3 percent share.

In Q2’09, LG Display took first place in unit shipments, but Samsung shipped the most by area. On a unit basis, Korea was the largest supplier of large-area TFT LCD panels in Q2’09 with a 49.8 percent share, but was down from 52.2 percent in Q1’09 due to strong shipment growth of Taiwanese panel suppliers.

Taiwan’s share increased from 38.4 percent in Q1’09 to 41.2 percent in Q2’09.

Table 3 shows the Q2’09 shipment ranking of large-area TFT LCD panels by original specification and application.

Table 3: Top Three Unit Suppliers for Each Application in Q2’09
Source: DisplaySearch
* Includes <26” LCD monitor panels used for LCD TV
** Includes 10.x”, 11.x” and some 12.0” panels used in mini-notes
*** Excludes <26” LCD monitor panels used in LCD TVs

According to David Hsieh, Vice President of DisplaySearch, “We are forecasting that industry utilization will be 87 percent in Q3’09 due to growing orders. In Q2’09 the industry experienced a strong recovery, and shipments reached record highs.

"We expect that strong demand will push panel shipments to another record high in Q3’09. However, strong panel shipments in some cases are due to downstream players piling up inventory, so we believe it will be necessary to watch the supply chain inventory situation closely at the end of Q3’09.”

Large-area TFT LCD shipments reach record levels in June

AUSTIN, USA: June 2009 shipments of large-area TFT LCD panels reached 46.7 million units, up 8 percent M/M and 24 percent Y/Y, according to the most recent DisplaySearch Monthly TFT LCD Shipment Database. This sets a new record for the highest monthly large-area TFT LCD shipments.

On a unit basis, LG Display was the leader with 24.5 percent market share, followed by Samsung with 24.1 percent and AUO with 16.6 percent. Large-area TFT LCD revenues reached $5.3 billion, up 14 percent M/M, but 17 percent lower than June 2008.

In terms of shipment volume, June’s shipment results indicate a continuation of the large-area TFT LCD industry’s recovery. DisplaySearch forecasts that shipments will increase again in July, but at a slower rate because the glass substrate shortage is limiting panel makers’ production. The panel supply situation will continue to tighten in July and August, which will result in higher revenues.

All three major applications—notebook PC, monitor and TV—showed M/M growth. DisplaySearch’s research found that LCD TV panels had the highest Y/Y growth at 57 percent, followed by notebook panels at 19 percent, and monitor panels at 12 percent (Table 1).

Also noteworthy, notebook PC and LCD TV panel shipments both reached monthly record highs, with 14.7 and 13.1 million units, respectively. The 18 million LCD monitor panels shipped is the most since May 2008.

Table 1: Monthly Large-Area TFT LCD Panel Shipments and Growth (Millions)Source: DisplaySearch June 2009 Monthly TFT LCD Shipment Database

In terms of area, large-area TFT LCD shipments reached 7.1 million square meters in June, up 7 percent M/M and 32 percent Y/Y, the largest amount yet. The growth in shipment area was mainly driven by TV panels. Samsung led in area shipments with a 27.2 percent market share, followed by LG Display at 24.9 percent, CMO at 16.5 percent, and AUO with 15.6 percent.

In addition to large-area TFT LCDs, the Monthly TFT LCD Shipment Database also tracks 5.0” to 11.6” mini-note (netbook) panel shipments. Mini-note panel shipments were 3.5 million in June, also an all-time high.

HannStar took back the lead from AUO with 956 thousand units, passing AUO’s 920 thousand. HannStar started shipping 11.0” mini-note panels.

The Premium Version of the Monthly TFT LCD Shipment Database includes shipment data by suppliers for each application and screen size. Penetration of 16:9 aspect ratio panels in LCD monitors reached 49 percent in June, a big leap from 42 percent in May.

The penetration of 16:9 in notebook PCs reached 41 percent, also a big leap from 36 percent in May.

According to David Hsieh, Vice President of DisplaySearch: “June results broke many monthly records, such as total large-area shipments, notebook PC and LCD TV panel shipments, shipment area, and mini-note shipments. This is representative of the strong recovery in end-market demand, which is not limited to TV, but also includes notebook PCs and desktop monitors.”

Hsieh added: “We expect the limited supply of glass substrates will limit the shipment growth in July, and given end-market demand, we expect that shortage conditions will continue. However, this will encourage OEMs and brands to aggressively build inventories for the holiday season. As panel customers build inventories in Q3’09 after shortages in July and August, we believe it will be very important to scrutiny the supply chain inventory in September.”

May large area TFT LCD shipments -- Samsung leads with 27.5pc

AUSTIN, USA: May 2009 shipments of large-area TFT LCD panels 43.3 million units, up 8 percent M/M and 6 percent Y/Y, according to the most recent DisplaySearch Monthly TFT LCD Shipment Database. The 43.3 million units also represent the highest on record for the past 12 months.

On a unit basis, LG Display was the leader with 25.2 percent market share, followed by Samsung with 24.6 percent, and AUO with 17.9 percent. Large area TFT LCD revenues reached $4.7 billion, showing 15 percent M/M growth, but 35 percent lower than May 2008, an indication of how far prices declined in Q4’08 and Q1’09.

In terms of shipment volume, May’s shipment results indicate a continuation of the large-area TFT LCD industry’s recovery. DisplaySearch forecasts that shipments will increase again in June, and that the panel supply situation will continue to tighten in June and July, which will result in higher revenues.

All three major applications — notebook PC, monitor and TV — showed M/M growth. DisplaySearch’s research found that LCD TV panels had the highest M/M growth at 14 percent, followed by notebook panels at 7 percent, and monitor panels at 5 percent. The Premium Version of the Monthly TFT LCD Shipment Database includes shipment data by suppliers for each application and screen size.

Table 1: Monthly Large-Area TFT LCD Panel Shipments and Growth (millions)Source: DisplaySearch May 2009 Monthly TFT LCD Shipment Database

Large-area TFT LCD shipments reached 6.6 million square meters in May, up 10 percent M/M and 12 percent Y/Y, and the highest level in more than a year. The growth in shipment area was mainly driven by TV panels. Samsung led in area shipments with a 27.5 percent market share, followed by LG Display at 25.6 percent, CMO at 16 percent, and AUO with 15.9 percent.

In addition to large-area TFT LCDs, the Monthly TFT LCD Shipment Database also tracks 5.0” to 11.6” mini-note PC (netbook) panel shipments. Mini-note panel shipments were 3.1 million in May, almost flat from April. AUO led in shipments, passing HannStar, which had been the leader in mini-note panel shipments since January.

Several panel makers have entered the mini-note market since May, including Innolux in Taiwan and InfoVision in China. At the same time, panel makers such as CMO, AUO, LG Display and Samsung have started to ship 11.6” panels for mini-note PCs.

According to David Hsieh, Vice President of DisplaySearch, “May results are encouraging for panel makers, as they reflect a healthy recovery in demand.” He added: “Considering the current end-market demand and the limited supply of glass substrates, as well as the low panel inventories, we expect that shortage conditions will continue. In June, both panel shipments and prices continue to increase, and we expect to see additional price increases in July.”

Top five makers to produce 89.2pc of global large-area TFT LCDs by area in 2009

AUSTIN, USA: Production of TFT LCD panels is continuously evolving, as different panels of different sizes and applications are made on the most appropriate generation fabs based on utilization and cost efficiency.

In unit terms, 34.3 percent of large-area (10”+) TFT LCD panels were made on Gen 7 lines in Q1’09, up from 32.5 percent in Q4’08, according to the latest DisplaySearch Quarterly Large-Area Production Strategy Report. DisplaySearch defines Gen 7 to include 1870 × 2200 mm and 1950 × 2250 mm (defined by some as Gen 7.5) substrate sizes.

In Q1’09, 2.3 percent of all panels were produced on Gen 4 and below, 24.4 percent on Gen 5, 4.4 percent on Gen 5.5, 23.9 percent on Gen 6, 34.3 percent on Gen 7, and 10.8 percent on Gen 8, in unit terms (see Table 1).

TFT LCD makers are shifting more production to larger fabs. In Q1’10, the share of large-area TFT LCD panels produced on Gen 8 lines (which DisplaySearch defines to include 2160 × 2460 mm and 2200 × 2500 mm sizes) will increase to 19.4 percent, and 2.8 percent will be produced on Gen 10 lines.

Table 1: Large Area TFT LCD Production Unit Share by Fab GenerationSource: DisplaySearch Quarterly Large-Area Production Strategy Report

By application in Q1’09, 77.6 percent of mini-note PC (netbook) panels and 82.8 percent of notebook PC panels were made on Gen 5 lines. Since Gen 5 glass substrates are in shortage, the supply of notebook PC panels is expected to be tight in the next few months. About 3.4 percent of notebook panels were made in Gen 6, mainly by LG Display and CPT.

In Q1’09, 43.2 percent of monitor panels were made on Gen 5 lines, the first time Gen 5 production of monitor panels fell below 50 percent. DisplaySearch forecasts that in Q4’09, 55.7 percent of LCD monitor panels will be made in Gen 6 and larger fabs. Interestingly, 4.4 percent of LCD monitor panels were made on Gen 8 lines in Q1’09, solely due to Samsung 18.5”W and 21.5”W monitor panels.

In terms of TV, Gen 7 has a 47.7 percent share of TV panels; 29.8 percent were made on Gen 6 lines and 16.4 percent on Gen 8. In Q4’09, DisplaySearch forecasts that 28.4 percent of TV panels will be made on Gen 8 lines, compared to 23.3 percent on Gen 6.

The DisplaySearch Quarterly Large-Area Production Strategy Report discloses TFT LCD suppliers’ production plans, by size, application and generation. The top five TFT LCD makers are expected to account for 89.2 percent of panel production by area in 2009, a big leap from the 74.8 percent in 2008.

In total, TFT LCD makers are planning to input 105 million square meters of glass substrate for large-area panels in 2009, which represents 15.5 percent growth from the 90.9 million square meters in 2008.

Samsung is expected to lead TFT LCD production with 28.9 million square meters input in 2009, or 27.5 percent of the total, followed by LG Display at 25 million square meters, or 23.8 percent share. AUO is expected to rank third with 17 million square meters and 16.2 percent share, followed by CMO at 16.8 million square meters and 16 percent share, and Sharp will be fifth with 6 million square meters input and 5.7 percent share.

“DisplaySearch expects that TFT LCD production will experience another new wave of changes as Gen 8 production is increasing, and Gen 10 is expected to come on line by Q4’09. Production of smaller size panels in large fabs will increase, as it enables flexibility, and this will change the product mix,” said David Hsieh, vice president of DisplaySearch and leader of large-area TFT LCD research.

Hsieh continued: “Many monitor and TV panels are produced on the same generation lines, so when TV panels are in shortage, the monitor panel market becomes tight as well. On the other hand, the high production share of the top five large-area TFT LCD panel suppliers indicates that the large-area TFT LCD market is moving to new level of concentration.”

E-paper market to soar to $2.1 billion by 2015: Displaybank

BUNDANG, SOUTH KOREA: Displaybank projects the e-Paper market to grow from $70 million in 2008 to $2.1 billion in 2015 and $7 billion by 2020 -- representing a CAGR of approximately 47 percent.

Displaybank also projects the e-Book market to comprise 50 percent of the total e-Paper market during that same period -- growing from $35 million in 2008 to $1.1 billion in 2015 and $3.4 billion by 2020 -- with the greatest regional demand coming from the US. These and other findings are disclosed in Displaybank's newly published e-Paper Display Technology and Market Forecast Report, which is the first report of its kind focusing on the e-Paper market in comprehensive detail.

Peter Kwon, Displaybank CEO noted: "It's nice to see that despite the current economic environment, certain technology applications are still gaining strong traction with consumers now, as well as present significant growth prospects in the coming years. The e-Paper market is a clear example of this, with e-Books representing a key 'killer application' that will take the merging of information and mobility to new heights. Being at the forefront of the display industry gives Displaybank a unique perspective on the exciting developments underway in the e-Paper market, and we look forward to seeing the continuing emergence of new technologies and applications to support this market."

According to Displaybank, Amazon currently leads in the e-Book market based on the abundant content that it offers. The growth of the e-Book market depends on not only the specifications of the reading device, but also on the available content and service offerings. As a result, Displaybank predicts that Sony's recently announced partnership with Google, the world's largest digital content provider, will propel Sony back into the e-Book market and allow it to serve as a formidable challenger to Amazon.

In addition to the e-Book market, Displaybank foresees myriad applications for e-Paper display technology due to its flexibility, ability to process electronic information and low power consumption. These include mobile displays, public displays such as electronic billboards and advertisements, as well as smart cards, Electronic Shelf Label (ESL) and Point of Purchase (POP) applications.

Improvements in e-Paper display technology such as contrast ratio, color display and durability will be needed to support these and other future applications. For example, larger-scale information displays will require improved precision in color display, while outdoor displays will need improved durability against heat and impact.

e-Paper displays using glass substrates are currently mass produced by Taiwan-based PVI and Korea-based LG Display. According to Displaybank, the first maker to utilize flexible substrate in e-Paper display is expected to be LG Display. LG Display is currently developing amorphous silicon thin-film transistor (TFT) technology-based flexible e-Paper displays using a metal foil substrate in co-operation with E-ink. During the second half of 2009, Displaybank predicts that 11.5-inch flexible e-Paper displays will enter the market in mass production.

The strength of Displaybank's new report is in its detailed analysis of the myriad e-Paper technology currently available along with regional R&D, technology and application trends. In addition, the report covers the necessary steps needed for performance enhancement through technology development and development factors, as well as product delivery forecasts. Coupled with a comprehensive forecast for both replacement and newly created markets, this report truly covers all aspects of e-Paper display technology, unlike any other.