LCD Modules. Essential sourcing intelligence for buyers

Transcription

1 Jilin Essential sourcing intelligence for buyers October 2006 US$495 Jiangsu Anhui Shanghai Zhejiang Fujian Guangdong Taiwan Hong Kong LCD module supply centers China manufacturer profiles Detailed profiles of 42 suppliers, including findings from in-person tours of 20 factories Product & price trends Prices and specifications for 60 top-selling export products Supply centers & market trends Coverage of leading and emerging supply centers, plus insight into capacity, output and R&D

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3 China Sourcing Report LCD MODULE MANUFACTURING IN MAINLAND CHINA, TAIWAN AND HONG KONG A ground-level view of supplier capabilities and product trends in the LCD module industries in mainland China, Taiwan and Hong Kong. EXECUTIVE SUMMARY The LCD modules market in the Greater China region continues to grow at an average annual rate of 20 percent. Because of very intense competition, small and mid-size manufacturers across the region have progressed from TN/HTN/STN passive matrix technologies to higherend color STN (CSTN) and active matrix thin film transistor (TFT) technologies. Many of them, however, continue making a wide range of module products across the spectrum. Of 160 makers located in the Greater China region, 120 of them can be found in Guangdong, Jiangsu, Fujian, Shanghai, Hebei, Liaoning and Jilin. Optical industry zones set up in these regions provide an excellent development environment for LCD module makers. Mainland Chinaʼs total LCD module production exceeded 2 billion units by the end of 2005 at only half of actual production capacity. Some large-scale makers enjoy the same level of strong manufacturing and R&D capability as their foreign counterparts. Small and medium-sized LCD module applications in 2005 were concentrated in the areas of telecom, consumer electronics, automotive and industrial products. Heavy market saturation also continues to have a dramatic effect on prices, as supply exceeded demand in the first half of The arrival of next generation panels is expected to decrease the rate at which prices are falling. The following are some of the key findings in the report: The 42 companies in this compilation will account for about 50 percent of Greater Chinaʼs total output in Their output is expected to grow by 62 percent from million units in 2005 to 1.13 billion units in The companiesʼ combined monthly capacity is estimated at million units. Large-scale players account for 48 percent, with monthly capacities of at least 800,000 units. TAB, COB and COG will continue to be the most common technologies employed in LCD module manufacture. Mobile phones are driving the small-size, high-end segment of the market, which includes CSTN and TFT LCD modules. Flat panel LCD TVs are leading the large-sized LCD module market. Production and export volume of surveyed suppliers million units 1,200 1, , * Production Export With LCD module manufacturers shifting focus from low-end to high-end markets, production is increasing in order to keep up with demand from both ends of the spectrum. * Aggregate estimations of surveyed companies Source: Global Sources LCD module R&D is focused on faster response time, higher resolution and lower power consumption. Industry Background discusses the LCD module industry in mainland China, Taiwan and Hong Kong. It talks about the major manufacturing bases in the region, industry drivers and challenges, and export markets of the surveyed companies. Manufacturing Capability looks into the key production processes of the companies surveyed in this report. This section describes makersʼ capacity utilization, number of production lines and employees, the size of their facilities and important production inputs. Products and Prices features information on the latest product trends and top areas of application. It discusses the R&D focus of interviewed makers and factors affecting price trends. Outlook gives projections and forecasts on production, exports and prices in the next six to 12 months. It discusses major trends and issues that will likely affect future market. The Supplier Profiles section provides a comprehensive description of the manufacturing capabilities, quality standards and product development of 20 of the 42 companies included in the report. It also contains 60 export models, each with product details and key specifications. The Supplier Tables section features tabular outlines of production and export capabilities, as well as R&D and QC facts, of 42 other surveyed companies. To prepare this report, Global Sources research teams toured the factories of 20 LCD module manufacturers and interviewed toplevel executives who discussed their respective companiesʼ performance in 2005 and forecasts for All suppliers were asked to participate in a survey designed to provide insight into product and price trends, and major challenges facing the industry in the next 12 months. Prices and specifications of 60 bestselling export products with full-color images are also included. IN THIS REPORT 20 In-depth Company Profiles 22 Profile Tables of Other Companies Supplier Index of 42 LCD Modules Manufacturers-Exporters LCD Modules 3

4 INDUSTRY OVERVIEW CONTENTS INDUSTRY BACKGROUND...6 Exports by region...6 Mainland China and Hong Kong supplier demographics...7 Taiwan supplier demographics...8 Mainland China and Hong Kong: export as percentage of sales...9 Taiwan: export as percentage of sales...10 Buyers by type...11 MANUFACTURING CAPABILITY...13 In-house/outsourced manufacturing processes...14 Capacity utilization...15 Manufacturing experience: Mainland China and Hong Kong...16 Manufacturing experience: Taiwan...17 Quality certifications...18 PRODUCTS AND PRICES...19 LCD modules product mix...19 Acquired product approvals...20 R&D index: Mainland China and Hong Kong...21 OUTLOOK...22 Overall market projections...22 Mainland China and Hong Kong output and export projections...23 Taiwan output and export projections price projections...25 SUPPLIERS AT A GLANCE...26 SUPPLIER PROFILES...28 SUPPLIER TABLES...68 SUPPLIER INDEX...79 Notes: All company financial, production and export data, phone and fax numbers, URLs and addresses in this report were provided by the companies interviewed. While they have been verified wherever possible, Global Sources does not guarantee their accuracy. Prices quoted in this report are in US dollars, unless otherwise specified. Product prices were provided by the companies interviewed as references only. Buyers seeking firm quotes relating to products mentioned in this report should contact the companies directly. Data, charts and tables in this report are derived from information provided by supplier-respondents. Where third-party data are used their sources are mentioned. 4 China Sourcing Report

5 INDUSTRY OVERVIEW INDUSTRY BACKGROUND The LCD modules market in the Greater China region continues to grow at a dynamic pace at an annual rate of 20 percent, driven by swift developments in the mobile phone, notebook, portable device, GPS and flat panel TV display markets. Because of very strong competition, small and mid-size manufacturers across the region have progressed from basic low-end TN/HTN/STN passive matrix technologies to higherend CSTN and active matrix TFT technologies. On the mainland, the drop in TN/STN modulesʼ share of the LCD module market of 20 percent, from 54 percent to 34 percent in 2005, coupled with TFT LCD modulesʼ increased share of the market doubling from 14 percent in 2004 to 28 percent in 2005 reflects this trend, which continues in Graphics LCD module output in the CSTN and TFT segments is on steady ascent. Many manufacturers, however, continue making a wide range of module products from low-end to high-end, which are used in portable and consumer electronics, household appliances, in-car applications and instrument panels. Heavy market saturation also continues to have a dramatic effect on prices, with production exceeding demand in the first half of In Taiwan, prices for 32in panels have fallen 30 percent, while for 42in panels, they fell 20 percent. Prices for 2in TFT LCDs applied to mobile phones have fallen by as much as 25 percent. In general, product development is still heavily focused on mobile phones and small-sized applications.mainland export ratios of more than 60 percent rose 21 percent from 2005 to Low and medium-end LCD modules still occupy the bulk of these exports, but demand for high-end STN, CSTN, and TFT LCD modules is expected to alter export composition in the future. Meanwhile, top Taiwan makers in the LCD module market are actively competing with other top players in the global arena. In the large-size panel industry, some Taiwan makers rank among the top 10 manufacturers of large-size panels worldwide, followed closely by a group of slightly smaller players. A significant number of them have opened next gen fab production lines delivering sixth, seventh and eighth generation display panels in the 32in, 37in, 42in, 47in and 52in range, while smaller companies are comfortable delivering 3.5G to 5G products. Domestic competition among top Taiwan players has also been very intense. Market consolidation trends of the last five years or so continue, as some top display makers merge with former competitors or with key component makers, allowing them to cut down on raw material and component costs. To illustrate, Toppoly and Philips were merged in 2005 to form Mobile Display System. More recently, AU Optoelectronics (AUO) merged with Quanta Display Exports by region Mainland China and Hong Kong Taiwan % of companies shipping to regions % of companies shipping to regions Middle East Oceania 17 Africa Oceania 28 South Asia 38 Middle East 33 Middle East Eastern Europe 38 South Asia Southeast Asia Central/South America 46 Central/South America 67 Southeast Asia 50 North America 83 East Asia 75 Eastern Europe 89 Western Europe North America 79 East Asia Western Europe Greater product quality has enabled LCD module manufacturers in Greater China to establish a foothold in foreign markets. Export focus areas include Europe, the United States and East/Southeast Asia. Source: Global Sources 6 China Sourcing Report

6 SUPPLIER PROFILES AU Optronics Corp. (AUO) AU Optronics Corp. (AUO) was formed in 2001 through a merger between Acer Display Technology Inc. (subsidiary of Acer) and Unipac Optoelectronics Corp. (subsidiary of UMC). The company manufactures and designs TFT LCD modules and LCDs in Taiwan. In April 2006, AUO merged with Quanta Display Inc. AUO ranks third worldwide in large-size TFT LCD module production, accounting for 14.7 percent of all global supply for large-size TFT LCDs in 2005, according to research firm DisplaySearch. As for small- to medium-sized LCDs, the company ranks sixth in the world. AUO produces and markets TFT LCDs in sizes ranging from 1.5in to 46in. Apart from its Taiwan facilities, AUO has offices in the United States, Japan, South Korea, the Netherlands and mainland China and some parts of Europe; and has over 28,000 employees worldwide. By the end of 2005, AUO acquired more than 3,300 patents worldwide. AUO ships 60 percent of its overall output monthly. Its major export markets include Asia, which absorbs 88 percent, and Europe and America, taking up 12 percent. AUO is also planning to penetrate the markets in Eastern Europe and Central and South America, particularly Mexico. Aside from being the headquarters, Taiwan is also AUOʼs primary export port. Annual sales from all products reached $6.6 billion in 2005 and $3.97 billion in the first half of Of this, sales of TFT LCD module applied to TVs and mobile phones represent 48 percent; TFT LCD modules for notebook PCs account for 49 percent of AUOʼs sales in the second quarter of With the start of 7.5G TFT LCD production in the fourth quarter of 2005, AUO is projecting sales of $125 million in the third quarter of 2006 and $156 million in the final quarter of Manufacturing Capability AUO has 11 factories located in Hsinchu, Taoyuan and Taichung in Taiwan, and Jiangsu and Xiamen in mainland China. Its facilities are ISO and OHSAS certified. The companyʼs Hsinchu factories are mainly for the production of 3.5G TFT LCD modules; the Taoyuan factories are for the 4G and 5G TFT LCD modules; and the Taichung factories are for the 6G and 7.5G TFT LCD modules. Mass production of 7.5G TFT LCD modules with dimensions over 40in is expected in the fourth quarter of AUO utilizes TAB, COG and One Drop Fill (ODF) manufacturing and packaging technologies. Currently, 37in TFT LCD modules are the companyʼs mainstream products, which represent about 12 percent of its total output. Meanwhile, production of 32in TFT LCD modules is projected to reach 100,000 in the third quarter of Company Background Year established 2001 Head office location Hsinchu, Taiwan Factory location(s) Hsinchu, Taoyuan and Taichung, Taiwan; Suzhou, Jiangsu; Xiamen, Fujian R&D budget (% of sales) 1.5 Sales/Export Performance 2005 sales of all products (US$) 6,600,000, sales of LCD modules (US$) 6,600,000, export of LCD modules (US$) 3,960,000, * sales of all products (US$) 7,946,750, * sales of LCD modules (US$) 7,946,750, * export of LCD modules (US$) 4,768,050,000 Major brands/clients served BenQ, Dell, Fujitsu, NEC, Hon Hai, Sharp, Sanyo Export ports Regions served Types of Buyers Served % OEM 100 Forecasts Prices for Q Taiwan Asia, North/Central/ South America, Europe 14% fall Manufacturing Index Year when LCD modules were first produced 2001 Average monthly output 9,400,000 Annual output 89,107,000 Annual export 59,463,000 Technology partners IBM, Matsushita Product approvals RoHS Management certifications ISO 9000, ISO 9001, ISO 9002, ISO 14001, WEEE In-house/Outsourced Processes Input material inspection In-house Photo-etching In-house PI coating/pi rubbing In-house Screen printing/assembly In-house Breaking/scribbing In-house LC inspection/injection In-house LC injection/end seal In-house Polarizer film attachment In-house Key Components Suppliers LCD drivers/driver ICs Raydium, Sita, Orise Contact Details Phone (886 3) fionachiu@auo.com URL * Estimates 28 China Sourcing Report

7 SUPPLIER PROFILES AUO is also emphasizing the production of 42in and 47in LCD modules. In fact, the company has been manufacturing 42in TFT LCD modules since the second quarter of AUO has purchased land in Taichung to set up a new 8G TFT LCD facility. The company aims to manufacture TFT LCD modules larger than 50in. Products and Prices AUO invested 1.5 percent of annual sales, or $152 million, in R&D for The company has a total of 4,554 R&D and technical engineers. The companyʼs technology center, which is located in Taichung, has about 900 engineers and focuses on LCD technology development. It has developed its own Advanced MVA, LTPS, COG and ODF technologies. Meanwhile, AUOʼs output of TFT LCD modules designed for TVs has been increasing. By the second half of 2006, the segment accounted for 34 percent of its end-product applications. Other end applications included monitors, 34 percent; notebook PCs, 15 percent; small- to medium-sized models, 14 percent; and general display applications, 3 percent. AUO uses LED backlight modules for TFT LCD modules measuring more than 37in, and white LED backlight modules for TFT LCD modules applied to notebook PCs. The company sources most of its key components and raw materials from Taiwan companies. For instance, its color filters come from Cando Corp. It plans to import other materials from South Korea. All of AUOʼs LCD modules are RoHS-compliant. However, despite the additional cost of compliance to the directive, the companyʼs average selling prices for TFT LCD modules went down by 14 percent per square meter of display on-quarter in the first half of Popular export models Model/series T370HW02 Type of LCD module Graphics Release date 2006 Packaging Carton Key features & specifications: Resolution 1,920x1,080dpi Brightness 500cd/m 2 Viewing angle 178 (H)/178 (V) Viewing area 819.4x460.9mm Pixel pitch 0.42mm Backlight LED Operating voltage 12V DC Overall dimensions 877x514.6x54.7mm Model/series T460HW01 Type of LCD module Graphics Release date 2006 Packaging Carton Key features & specifications: Resolution 1,920x1,080dpi Brightness 600cd/m 2 Viewing angle 176 (H)/176 (V) Viewing area x573.5mm Pixel pitch 0.53mm Backlight CCFL Operating voltage 12V DC Overall dimensions x654.5x47.7mm Model/series B121EW03 Type of LCD module Graphics Release date 2006 Packaging Carton Key features & specifications: Resolution 1,280x800dpi Brightness 200cd/m 2 Viewing angle 80 (H)/60 (V) Viewing area 261.1x163.2mm Pixel pitch 0.2mm Backlight CCFL Operating voltage 3.3V DC Overall dimensions 278.5x178x4.9mm 29

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