FLAT PANEL DISPLAY
UPDATE
January 2007
McIlvaine Company
Samsung to Outline LCD Plant in February
Soon, Samsung plans to decide on the site for a $600 million LCD panel plant in Slovakia. Samsung expects to have the facility ready by 2010. With cheap labor and low taxes, Slovakia has been seeing many foreign investors.
CMO May Produce 40-inch Panels
Chi Mei Optoelectronics (CMO) will begin production of 40-inch panels in the third quarter of 2007 at the earliest, mainly to earn orders from Sony and other makers, according to market rumors. Although using a 7.5-generation (7.5G) LCD plant to produce 40-inch panels is not as cost competitive as using a 7G plant, CMO will still benefit from the production, as more capacity at its 7.5G plant will be utilized and its profitability will improve, sources said.
The sources estimate that CMO's current monthly shipment level for 42-inch panels from its 7.5G plant was nearly 40,000 panels.
Ulvac and Bay Zu Precision to Open New LCD Equipment Plants in Taiwan
Both Ulvac and Bay Zu Precision Company (BZPC) will finish building their new LCD equipment plants in the Tainan Science Park (TSP) in Taiwan on February 8, according to the companies.
Ulvac said two eighth-generation (8G) vacuum units will be part of its operations by then and it is also considering a second-stage facility expansion within a year-and-a-half to two years at the earliest.
BZPC said it has invested NT$700 million (US$21.2 million) for equipment purchase from Germany and Japan to meet demand for 8G LCD production.
Flat Panel TV Technologies at a Crucial Crossroads
As LCDs thrive, competing display technologies face a CES where they must do or die.
Television will dominate the upcoming 2007 Consumer Electronics Show (CES) in Las Vegas this month, as LCD-TV OEMs showcase their latest and greatest products, while providers of other display technologies try to prove that they can remain relevant amid the liquid-crystal deluge.
Television display technologies such as microdisplay Rear Projection (RPTV) are entering a crucial time when they must either do or die. One slip in deadlines could send the RPTV segment spinning into an unrecoverable decline in market share.
For Plasma Display Panel (PDP) televisions, the main challenge is continuing to weather the onslaught of LCD-TVs in the 40-inch and larger market. The longer PDP-TV can hold out, the longer OEMs will continue to make money selling such sets, assuring their continued support for the technology.
However, it is LCD-TVs that are in the best position right now - despite a struggle to achieve profitability in the supply chain. LCD-TVs have gained rapid acceptance and adoption among consumers thanks to their aggressive pricing in the third and fourth quarters of 2006, combined with their wide availability in a variety of sizes.
CES will provide a fascinating look at which television display technologies are garnering the most attention. The event also will reveal the subtle differences in features that will help determine the success of competing television technologies for the year.
Larger sizes, 1080p get a boost
While CES will feature all sizes of LCD-TVs, the majority of interest will be in the 40-inch and larger sets, where suppliers are beginning to concentrate on bringing prices down in order to stimulate sales.
The majority of these large LCD-TVs will feature deeper black levels, faster response times - at 4 to 6 milliseconds and full High-Definition (HD) or 1080p resolutions. iSuppli believes many Taiwanese and Chinese brands will be showing off their LCD-TV products at CES in an effort to attract attention from retailers and to explore Original Design Manufacturing (ODM) opportunities with branded vendors and contract manufacturers.
Plasma extraction
With PDP sets larger than 100-inches already having been demonstrated at past events, there won't be a great deal of innovation coming from the plasma segment at CES. More likely, PDP makers at CES will highlight their push to 50- inch and larger sets that have 1080p resolution as they continue to vie with LCD-TVs.
RPTV not giving up the fight
In the microdisplay RPTV camp, the majority of the focus will be on the Digital Light Processing (DLP) and Liquid Crystal on Silicon (LCOS)-based rear projection TVs, due to the innovations occurring in these two technologies.
Texas Instruments Inc. and its partners will be showing new thin DLP TVs with improved color saturation and reduced rainbow effect. Full HD 1080p resolutions also will be a key focus for DLP at CES.
In the LCOS RPTV area, Sony Corp. will be promoting its Silicon X-tal Reflective Display (SXRD) technology, its own version of LCOS.
For companies producing microdisplay RPTVs, their efforts to attract attention at CES must succeed, as their technologies are under heavy competitive stress from LCD-TVs in the market for larger-size sets. If RPTVs technologies are to survive, they are going to need innovative models and advances in technology that can impress not only OEMs but also consumers.
Adios CRTs
Don't expect Cathode Ray Tube (CRT) televisions to have any hint of a presence at CES, as they have been a no- show at the event for the past couple of years. With waning consumer interest, this technology is on the decline in the U.S. market and iSuppli does not expect OEMs to waste floor space on the technology.
Can't make a deadline
While the established technologies will receive most of the attention, newer technologies will be demonstrated at CES as well. Expect to see a demonstration of Surface-conduction Electron-emitter Display (SED) technology, although the timetable for an actual product introduction has been pushed back repeatedly, with the latest deadline set for the end of 2007.
OLEDs for TVs also will be demonstrated at CES, but again, product introductions aren't expected anytime soon
Innolux Announces China Investment
Innolux Display announced that it has invested an additional US$90 million in a China-based affiliate in Shenzhen, China for the production of LCD-related products, back-end modules, components and system manufacturing, according to a company filing with the Taiwan Stock Exchange (TSE).
MicroEmissive Displays (MED) New Production Plant in Fraunhofer IPMS in Dresden Early in 2007
The move comes following the on-time handover of the purpose built cleanroom and delivery of the tool set from ANS Korea. In addition the first new employees to be based in Dresden started work in December.
The 350m2 purpose built cleanroom is state of the art and is located within the substantial facilities of the Fraunhofer IPMS campus.
Construction of the cleanroom was completed on time; equipment is in place and installation is already underway.
The toolset, delivered from ANS Korea in December, comprises polymer OLED based deposition and thin film encapsulation equipment for mass production.
LPL Says No to 8G LCD Production, Details Capacity Expansion Plans
LG.Philips LCD has stated that it will not invest in eighth-generation (8G) TFT LCD production. The maker also recently detailed the capacity expansion for its 5.5G and 7.5G plants at an investors conference.
Although the facilities at LG.Philips LCD has enough space for an 8G plant, the company is not spending any money to develop an 8G plant and beyond since it is not cost efficient to produce 8G panels and the company does not foresee demand for a large volume supply of 50-inch and-above-panels, according to Ron Wirahadiraksa, president and CFO of LG.Philips LCD.
Nevertheless, the company will still produce 52-inch-and-larger panels from its current plants, Wirahadiraksa said.
LG.Philips LCD has fixed the size of its 8G glass substrate at 2,200×2500mm and each substrate can be cut into eight 47-inch panels or six 55-inch panels, with the substrates to be possibly larger than those from Sharp.
Instead of building a new next-generation plant, LG.Philips LCD will focus its capex on the construction of P8 (5.5G LCD plant). Equipment will come in between the first quarter and second quarter of 2008. Initial monthly capacity will be 30,000 glass substrates and the capacity will be ramped up in three stages to 90,000 in the second quarter of 2008, Wirahadiraksa indicated .
In addition, the overall capacity from the panel maker will increase more than 30 percent this year and P7 (a 7.5G plant) will be the focus for the capacity increase, Wirahadiraksa indicated. The monthly capacity of P7 is expected to reach 90,000 units in the first half of 2007, he added.
Although the monthly capacity of P7 averaged 78,000 units last quarter, the average monthly capacity was about 74,000-75,000 at the end of 2006, he noted.
LG.Philips LCD expects its capex for 2007 to be approximately one trillion won, substantially lower than the three-trillion won spent in 2006, the maker said.
AMTC Plans to Sell Color Filter Plant
Amid an oversupply of 4.5-generation (4.5G)-and-under color filters (CFs), Allied Material Technology Corporation (AMTC) recently said it plans to sell a 3.5G or 4G CF plant and is seeking buyers.
The overall monthly capacity of 3G to 4.5G CFs from Taiwan, Japan and South Korea will reach about 2.49 million glass substrates in the first quarter of 2007, compared to a demand of only around 1.86 million, with the gap being about the sum of capacity from Taiwan-based Sintek Photronic, AMTC and Cando, according to recent industry estimates.
AMTC had losses of NT$579 million (US$17.6 million), NT$797 million and NT$370 million, respectively, for the first three quarters of 2006. Although the maker has yet to report its fourth-quarter results for 2006, sources estimated AMTC still had a loss during the period.
To improve profitability, AMTC said it is lowering utilization rates and costs. The utilization rates of its 3.5G and 4G CF plants are now in between 60 percent to 70 percent, the maker indicated.
In addition, the company is now planning on selling one 3.5G or 4G plant, with possible buyers including panel makers from Taiwan and China, AMTC said.
AMTC currently has one 3.5G and one 4G CF plant with a monthly capacity of 60,000 and 120,000 substrates, respectively.
For the 5G segment, AMTC said its 5G CF capacity is fully booked amid a balanced supply/demand situation.
The 5G CF plant started volume production in December 2006, with a monthly capacity of 85,000-90,000 substrates to be reached in the third quarter of 2007, up from 75,000 in the second quarter of 2007, the maker said recently
Struggling Chinese LCD Firms Set to Merge
Three Chinese TFT-LCD makers are planning to merge in June if they can come to an agreement by the end of this month. The deal would create a business with annual revenues topping $1 billion.
The three companies are BOE Technology Group, SVA Electronics, and Longteng Optic-electronics (Kunshan) Corp. Together they operate six legacy LCD lines with a combined capacity of about 200,000 panels per month. Production is limited to 15-, 17- and 19-inch panels, suitable only for commodity notebook PCs and monitors.
The move isn't expected to create waves anytime soon. Compared to competitors in Taiwan and South Korea, these companies are small.
Researcher DisplaySearch puts the market share of BOE and SVA at only 4 percent; adding in Longteng bumps it up marginally. Also, these companies are outside of the LCD industry sweet spot, which in 2006 covered 32-, 37- and 40-inch panels and probably will be 42-inch this year, said Kathleen Zhang, a China-based analyst for market watcher iSuppli Corp.
The Chinese government is targeting the LCD industry for major growth, hoping to see a handful of fifth-generation LCD production built lines by 2008, with additional sixth- and seventh-generation lines slated for 2010. Currently, China is home to two operational fifth-generation fabs and another that will come online soon.
SVA, in a partnership with NEC, operates a fifth generation plant and had hoped to bring a sixth generation plant online in 2008, but those plans may be delayed if a new company is formed, a spokesperson said.
BOE is also seeking funds for a sixth-generation plant. A few Chinese TV makers, such as Changhong and Skyworth, are also building LCD production lines.
Growth in China's TFT-LCD industry could hit 35 percent in 2007, followed by 50 percent growth in 2008, as local and foreign companies look to expand their facilities in China, according to Semiconductor Equipment and Materials International (SEMI).
The group estimates that China will spend $4 billion to $5 billion annually on materials and equipment in 2007 and 2008. It could eventually account for 20 percent to 30 percent of the total world market for TFT-LCD manufacturing equipment as investment in display production facilities slows elsewhere.
Nitto Denko to Build LCD Film Plant in China
Japan's Nitto Denko Corp. will spend about 20 billion yen ($165 million) to build a new factory in China for film used to make liquid crystal display (LCD) panels. Nitto Denko is the world's top maker of polarization film, which is needed to make LCD screens.
The factory will be located in Shenzhen, near Hong Kong, and is scheduled to go on line in October.
Nitto Denko has been subcontracting film production in Shenzhen. That output will be handled by the new plant to boost efficiency. Nitto Denko's initial investment will be about 6 billion yen. It has earmarked an additional 14 billion yen for future investment.
The company hopes the plant will generate about 25 billion yen in sales after two to three years, it said.
LCD Material Maker Efun Adds Investment in China
Efun Technology, a Taiwan-based brightness enhancement film (BEF) supplier, announced it is adding US$2 million of investments for a plant in Kunshan, China for production and sales of LCD backlight unit (BLU) components, such as BEFs and diffusion sheets, according to a company filing with the Taiwan Stock Exchange (TSE).
The company will ship products from the plant to BLU makers including Radiant Opto-Electronics, Coretronic, Forhouse, K-Bridge Electronics and Forward Electronics, sources said.
Currently, Efun heavily relies on shipments of BEFs for 17- and 19-inch LCD monitors. For the TV-use segment, 32-inch products will remain the company's focus in 2007, while the 40-inch-and-above segment will grow the most due to replacement demand, the maker said.
Plasma vs. LCD: The Battle Heats Up
The prize: dominating the big-screen, high-definition, flat-panel TV market. LCD makers have the advantage, but plasma producers are fighting hard.
One dominant trend in consumer technology this year will be the evolution in TV viewing habits. A growing number of consumers will be able to watch TV when they are on the go, as their mobile phones double as TVs, while telecom and Internet companies will deploy Internet protocol television, or IPTV, to bring all sorts of video entertainment into homes. Yet no other war to lure customers will be fiercer than the one waged between two flat-panel technologies: plasma and liquid crystal display.
The plasma vs. LCD rivalry is not new. Their battle has been going on ever since households began making the shift to digital and high-definition TV a few years back. But the competition will intensify as movie studios and game companies begin to roll out content in the new "full HD" resolution called 1080p.
The race to offer larger screens has up to now been led by plasma. But the LCD camp has had a head start in making screens to the 1080p standard to show the crisp images of the next-generation high-definition DVDs (see BusinessWeek.com, 2/23/06, "HDTV Moves to the Next Level").
Price parity in one segment
Lately, in the plasma vs. LCD competition, the balance has tipped in favor of the LCD camp, which has been pouring billions into the effort to make larger panels at cheaper prices. Market researcher DisplaySearch estimates LCD TV display revenues in 2006 at $22.5 billion, up 85 percent, against $7.2 billion for plasma TV displays, which gained only 28 percent.
Until two years ago, few had expected LCD to snatch dominance for flat screens larger than 40 inches. LCD panels were more expensive than plasma by as much as 50 percent in the 40-in. class. Today, though, price parity has been achieved between the two for that segment — although for the 50-in. class, LCD TVs are still some 50 percent more expensive.
Industry execs believe that at the current pace LCD will displace plasma as the mainstream flat-panel technology in the 40-in. segment, for years the mainstay of plasma. "The big trend this year is the full HD standard and it has been proven that plasma technology is too expensive to make screens with that resolution," says Daniel Kim, Hong Kong-based technology analyst at Merrill Lynch.
Plasma in high gear
The big question is, can plasma TV remain as a major flat-panel device? The short answer: yes, at least for the next few years. That's because it is easier and cheaper for the plasma camp to meet the 1080p standard in screens of 50 inches or larger, where LCD remains a scarcity due to the lack of mass production. "The battle ground will move to the 50-in. class next year and plasma TV makers can't afford to give up their market shares there," says Kim
Indeed the plasma camp is shifting into high gear for a renewed fight. Matsushita Electric Industrial (MC), which controls more than a third of the world's plasma TV market, announced last week it would spend $2.4 billion to build a new mammoth plasma-display factory in western Japan. "We simply can't lose the flat-panel TV battle," says Matsushita President Fumio Ohtsubo (see BusinessWeek.com, 1/11/07, "Matsushita Sees a Flat-Screen Future").
DisplaySearch expects global shipment of flat TVs to almost triple to 147 million units. To get a bigger pie, Korean plasma rivals LG Electronics and Samsung SDI have also been ramping up plasma facilities. Together the big three had a combined monthly capacity of some 1.4 million plasma panels at the end of 2006.
Doubling production
The real test comes next year when a joint venture between LCD titans Sony (SNE) and Samsung Electronics (SSNGY) is due to churn out giant LCD screens in mass volume. The LCD panel venture, S-LCD, is now building a $3 billion "eighth-generation" plant with the capability to cut six 52-in. panels from a single glass sheet. The plant in Tangjeong, south of Seoul, is slated to be completed next fall (see BusinessWeek.com, 11/28/06, "Samsung and Sony's Win-Win LCD Venture").
The S-LCD's new plant joins an existing eighth-generation plant run by Sharp (SHCAY), the No. 3 LCD TV maker after Samsung and Sony. Sharp says it plans to double monthly production capacity at the plant in western Japan to 60,000 glass sheets by July and to 90,000 sheets in 2008. President Lee Sang Wan, in charge of Samsung's LCD unit, predicts consumers will be able to buy a 50-in. LCD TV next year at the price of a 40-in. set in 2006.
Less price challenge this time
Such pricing would be a tough challenge for plasma TVs. Yet there are signs things won't pan out in the same way in the 50-in. TV market. For the 40-in segment, LCD manufacturers in Korea, Japan, and Taiwan inundated the market with panels until supply exceeded demand by 60 percent. In contrast, "Even with the supply from S-LCD and Sharp, the LCD volume in the 50-in. class would be only a quarter of that in the 40-in segment," says Seo Young Jae, senior manager in charge of flat panel products at LG, which makes both LCD and plasma TVs.
Efforts by plasma TV makers aimed at cutting costs and improving quality will likely pay off as well. All major plasma TV makers, including Matsushita, Samsung, LG, and Pioneer are due to bring out 50-in. and bigger sets in the 1080p standard this year. With LCD TVs expected to focus on the highest definition resolution in the segment, plasma could also sell TVs with cheaper HD 720p resolution—good enough for many viewers, Seo points out.
"We don't expect one technology will win over another, at least for the next few years," says David Steel, vice-president at Samsung's digital media unit. "With the bigger market and faster rate of growth, LCD has the momentum. But still, with 13 million to 14 million TVs being sold a year, we have a completely viable plasma market."
Sharp to Build 7.5G LCD Plant with China's TCL
Japan-based Sharp will build its first 7.5-generation (7.5G) TFT LCD plant by working with China's TCL and the Shenzhen city government, with a memorandum of understanding (MOU) already signed and a stock share percentage breakdown among the parties likely to be 51 percent, 40 percent and 9 percent, respectively, according to the Chinese-language Commercial Times.
The plant, which will have an initial monthly capacity of 30,000 glass substrates, will see equipment installation commence in 2008 and will begin operations later that year, the paper said, adding that the initial investments may stay at around NT$30-50 billion (US$916 million to US$1.5 billion).
Both Sharp and TCL are in urgent need of sufficient supply of large-size panels and both companies have close relationships with Taiwan-based panel makers.
Competing fiercely with Sony in the large-size LCD TV market, Sharp has been reported to be releasing more orders to Taiwan-based panel makers. In June 2006, the Commercial Times said Chi Mei Optoelectronics (CMO) will start shipping 32-inch TV panels to Sharp in July while the monthly shipments of 37-inch panels from AU Optronics (AUO) to Sharp are expected to exceed 100,000 units.
Sony has a strong support of large-size panel supply by establishing 7G and 8G plants with Samsung Electronics while Sharp has a 6G and a 8G plant for the larger-than-40-inch panel segment.
Recently, Sharp announced it will install a third line at its 8G plant to expand its production capacity for large-size LCD panels, with operation to start by July 2007, which will help boost the monthly capacity at the plant to 90,000 units by 2008.
Sharp estimates worldwide demand for LCD TVs to be 45 million units for fiscal year 2006 (the year ended March 2007) and 68 million units, 1.5 times larger, for fiscal year 2007, while the demand for 40-inch-and-larger LCD TVs is expected to be especially vibrant, the maker said.
Sharp Aims to Triple LCD Output
Sharp Corp., Japan's largest maker of liquid-crystal displays and mobile phones, will spend 200 billion yen (US$1.66 billion) to triple output of the panels as rivals raise investment and pare unit costs.
Monthly production at the company's Kameyama factory in central Japan will surge to 90,000 glass substrates in 2008, the Osaka-based company said. Output will double to 60,000 by July this year, and the company expects LCD TV sales to jump 50 percent next fiscal year to 9 million units.
President Katsuhiko Machida is speeding up production of larger, high-definition screens to outpace falling prices and keep up with rivals such as Sony Corp. and Matsushita Electric Industrial Co. in the US$86 billion global flat-panel display market. Matsushita has said it will expand flat-screen production at the world's largest factory for plasma panels, a rival technology.
Sharp Friday said it expects sales to jump 10 percent to 3.3 trillion yen in the year starting April from the 3 trillion yen it expects this fiscal year. Revenue from LCD panels will probably jump 17 percent to 1.2 trillion yen, from the estimated 1.03 trillion yen this year.
The company is building a third production line at the Kameyama factory it opened in August, becoming the first to operate an eighth-generation line. Capital spending will rise 9 percent to about 300 billion yen in the year starting April. Investment in LCD production will remain almost flat at 200 billion yen and the company will spend 10 billion yen on solar panel output, it said Friday.
"We will decide by summer whether to build a new factory and what size of glass to use," Machida said recently. The company's second and third Kameyama lines are eighth-generation, or 8G, facilities, which use the industry's largest glass.
Matsushita Plans Biggest Plasma Panel Plant
Matsushita Electric Industrial Co. said its plasma television operations were central to its growth strategy over the next three years and revealed plans to double production capacity by building the world's largest plasma display panel factory.
Matsushita, the Osaka-based maker of Panasonic-brand products, has pegged its fortunes on plasma technology for large flat-panel TVs, while rivals such as Sony Corp. (SNE) and Samsung Electronics Co. (005930.SE) have chosen to produce liquid-crystal-display TVs. Plasma screens handle motion better and have superior contrast in dark rooms, while LCD screens look better under normal light and have a wider viewing angle.
Matsushita dominates the global market for plasma TVs, aiming for 40 percent market share this fiscal year through March. But plasma TVs currently make up only 15 percent of the global flat-screen TV market.
Matsushita will invest Y280 billion to build its new plant in Amagasaki, Hyogo Prefecture, western Japan. The plant will have the capacity to produce 1 million 42-inch panels a month - the largest capacity for a PDP plant in the world, according to the company. This would roughly double its current planned capacity for over 11.5 million units by March 2010.
It will be Matsushita's fifth domestic plasma display panel manufacturing facility and begin operations in May 2009. Ohtsubo said the company will initially keep all five plants operational, but will probably eventually close two older and less efficient facilities.
Under its new business plan, Matsushita said it will invest Y1.5 trillion in capital outlays and spend Y1.8 trillion on research and development over the next three business years.
With these growth strategies, Matsushita said it is aiming to achieve group sales of Y10 trillion in the fiscal period ending March 2010, compared with estimated sales of Y8.950 trillion for this fiscal year.
LG.Philips Faces Delay in Production of Flat Panels at New LCD Plant
LG.Philips LCD Co., the world second-largest flat panel maker, said it may face a delay in the production of flat panels at a new liquid crystal display (LCD) plant under construction due to a sluggish market.
Denying a media report that the ongoing construction of its 5.5-generation LCD facilities in Paju, about 40 kilometers north of Seoul, came to a halt due to financial problems, a company spokesman said that the production at the facility will begin either in the final quarter of this year or early in 2008, several months later than scheduled.
AUO to Postpone Equipment Installation for Second 7.5G Plant
AU Optronics (AUO) has informed equipment makers that it will postpone equipment installation for its second 7.5-generation (7.5G) plant (L7B) from the fourth quarter of 2007 to 2008, according to the equipment makers.
AUO is considering converting the plant to an 8G one and is discussing the size of glass substrates to be processed at the plant with equipment makers.
AUO's first 7.5G plant (L7A) entered volume production in October of 2006, with a first-stage monthly capacity of 30,000 glass substrates (the 10,000 level was reached in the fourth quarter of 2006) and a second-stage level of 60,000.
Chi Mei Optoelectronics (AUO) Postponed 8G Plant
Chi Mei Optoelectronics (AUO) has postponed construction of its 8G plant, with production not likely to commence until 2009. CMO was quoted as admitting that it has suspended construction of related facilities.
China-based Changhong to Invest 6 Billion Yuan in First PDP Line
Changhong Electric plans to invest six billion yuan (about US$768 million) for the first-stage construction of the first PDP (plasma display panel) line in China.
The line is expected to enter volume production in 2008, producing over two million PDPs and generating revenues of 8 billion yuan per year, with 50-inch and larger PDPs being the major product, said company spokesperson Ho Ke-Si.
Sharp to Start LCM Production in Poland in January 2007
Sharp Manufacturing Poland Sp.zo.o. (SMPL), located in Lysomice, Poland, will begin producing LCD TV modules in January 2007. Initial production capacity at SMPL will be 100,000 modules per month, according to Sharp.
SMPL was established in April 2006. The Lysomice plant will produce LCD modules for embedding in large-screen LCD TVs for the European market. The TVs will be manufactured at Sharp's plant in Spain and Loewe's plant in Germany.
In addition, SMPL is also considering manufacturing LCD TVs in 2007 to meet growing demand in the European market.
Profile of SMPL
Company name: Sharp Manufacturing Poland Sp.zo.o.
Location: Lysomice, Kuyavian-Pomeranian Voivodeship, Poland
Representative: Toshiyuki Tajima, President
Equity participation: Sharp Corporation, 100%
Business description: Manufacture and sales of LCD modules
Site area: Approx. 500,000 m2
Building area: Phase I: Approx. 44,000 m2
Investment: Phase I: Approx. €44 million
Start of production: January 2007
Employment: About 800 employees
Organic Electronics Market to Reach US$19.7 Billion by 2012
The market for products such as OLEDs (organic light-emitting diodes), organic thin-film transistors and other electronic products made from organic materials will grow from US$1.4 billion in 2007 to US$19.7 billion by 2012 and then go on to reach US$34.4 billion in revenues by 2014, according to research firm NanoMarkets.
OLEDs are emerging
OLED displays are no longer just for low-end MP3 players and handset sub-displays, they are becoming part of the latest mobile electronics concepts including the ebook notebooks from LG Electronics (LGE) and ultra-slim mobile phones from Sony Ericsson. Wireless device manufacturers are attracted by the low power consumption and excellent video qualities of OLED technology. By 2012, the OLED industry including display, signage and lighting applications is expected to reach US$10.8 billion.
Products based on organic transistors are for real
Radio frequency ID (RFID) is an application in which organic transistors are expected to successfully compete with mainstream silicon technology. In 200,7 the market will see the first commercial organic RFID tags from firms such as Motorola, OrganicID and PolyIC. NanoMarkets believes that by 2012, the market for organic RFIDs will reach US$4.5 billion. Organic transistors are also already enabling new business revenues in the form of display backplanes (Sony book reader, for example), which are expected to generate US$1.6 billion in revenues by 2012 as well as in some toys and games. The market for toys, games and other novelties will reach about US$1 billion by 2012.
New materials appear and prices to fall
The commercialization of organic electronics is also leading to research into new kinds of materials. For example, solution-processable small molecule materials promise larger and lower cost OLED displays and hybrid organic/inorganic materials will help expand the photovoltaic markets with lower cost solar panels and effective solar chargers for mobile electronics. In addition, as organic electronics materials begin to be manufactured in commercial quantities, NanoMarkets expects prices to fall dramatically, which, in turn, will make it easier for organic electronics to penetrate new markets.
Improved manufacturing processes
As the OE business grows, equipment suppliers have a strong incentive to build specialist production equipment to serve the needs of this budding industry. For example, organic vapor deposition (OVPD) systems promise better performance and cost characteristics for organics than the traditional vacuum deposition methods used in the semiconductor industry. The seventh-generation (7G) ink-jet printers from firms such as Litrex will also pave the way to the rapid commercialization of organic electronics.
CMO Expansion in China to Benefit BLU Makers from Taiwan
Taiwan-based backlight-unit suppliers Kenmos Technology, Coretronic, and Chi Lin Technology are expected to see their plants in Ningbo, China, benefit from Chi Mei Optoelectronics' (CMO's) decision to expand its LCD module (LCM) plant in the same area, industry and company sources said.
CMO announced a plan to invest US$30 million in Ningbo Chi Mei Electronics with a goal to increase the China subsidiary's LCM monthly capacity to six million units.
Kenmos, Coretronic and Chi Lin are ramping up BLU production at their Ningbo plants in support of CMO's expansion, the sources noted. Kenmos already started production in July 2006 at its US$7.2 million BLU plant, with an initial monthly capacity equivalent to 500,000 BLUs for 17-inch monitor panels, the sources pointed out.
Kenmos' Ningbo plant currently chiefly outputs BLUs for 13.3-inch notebook panels, 19-inch and 22-inch widescreen monitor panels, the sources disclosed. The plant may also start making BLUs for TV panels, depending on demand from CMO's Ningbo subsidiary, the sources added.
Coretronic has been shipping BLUs from its Suzhou, China plant in support of the CMO plant, but this month the BLU maker started test production at its Ningbo plant, and will ramp up production gradually in the future, the sources said.
Chi Lin's Ningbo subsidiary, which has started volume production, supplies all of its BLUs to CMO's LCM plant in Ningbo, the sources said.
The Chi Lin plant's initial monthly capacity totals 200,000-300,000 units, chiefly catering to 17- and 19-inch monitor panels, the sources said, adding it may add TV-use BLUs to its production in the future.
Radiant Opto-Electronics currently does not have a BLU plant in Ningbo, but it will not rule out setting up one there in the future, the sources revealed. Radiant currently ships BLUs to the CMO Ningbo plant from its facilities in Wujiang, China, the sources added.
Epistar Receives Red LED Orders for 2008 Beijing Olympics
Taiwan-based LED chipmaker Epistar confirmed that the company has received red LED chip orders for outdoor LED bulletin boards for the 2008 Beijing Olympics and the World Expo 2010 Shangha. Epistar's red LED chip capacity from March to June 2007 is fully booked.
McIlvaine Company,
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