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Display Worldwide Large Area TFT-LCD Panel Supply-and-Demand Forecast, 4Q 2014 Taiwanese Large Area TFT-LCD Panel Production Capacity by Maker, 1Q 2014-4Q 2015 Korean Large Area TFT-LCD Panel Production Capacity by Maker, 1Q 2014-4Q 2015 Japanese Large Area TFT-LCD Panel Production Capacity by Maker, 1Q 2014-4Q 2015 Chinese Large Area TFT-LCD Panel Production Capacity by Maker, 1Q 2014-4Q 2015 Worldwide Large Area TFT-LCD Panel Demand Volume, 1Q 2014-4Q 2015 Worldwide Monitor Panel Demand Volume, 1Q 2014-4Q 2015 Worldwide Monitor Panel Market Demand Volume Share by Screen Size, 1Q 2014-4Q 2015 Worldwide Notebook PC Panel Demand Volume, 1Q 2014-4Q 2015 Worldwide Notebook PC Panel Deamnd Volume Share by Screen Size, 1Q 2014-4Q 2015 Worldwide TV Panel Market Volume, 1Q 2014-4Q 2015 Worldwide TV Panel Market Volume Share by Screen Size, 1Q 2014-4Q 2015 Worldwide Large Area TFT-LCD Panel Supply and Demand Area, 1Q 2014-4Q 2015 Intelligence Insight Research Scope & Definitions By Brian Chen Document Code: DPSTL14080801 Publication Date: January 2015 Check out MIC on the Internet! http://mic.iii.org.tw Copyright 2015 Market Intelligence & Consulting Institute The content herein represents our analysis of information generally available to the public or communicated to us by knowledgeable individuals or companies, but is not guaranteed as to its accuracy or completeness.
Worldwide TFT-LCD Large Area Capacity Back to Index Taiwanese Large Area TFT-LCD Panel Production Capacity by Maker, 1Q 2014-4Q 2015 Company Generation Fab Substrate Size AUO Innolux G5 Aspire Park L5A 1100*1250 G5 Aspire Park L5B 1100*1300 G5 CTSP L5C 1100*1300 G5 Linke L5D 1100*1300 G6 CTSP L6A 1500*1850 G6 Lungke L6B 1500*1850 G7.5 CTSP L7A 1950*2250 G7.5 CTSP L7B 1950*2250 G8.5 CTSP L8A 2200*2500 G8.5 CTSP L8B 2200*2500 G5 STSP fab3 1100*1300 G5 STSP fab5 1100*1300 G5 Jhunan fab2 1100*1300 G5.5 STSP fab4 1300*1500 G6 STSP fab6 1500*1850 G6 Jhunan fab3 1500*1850 G7.5 STSP fab7 1950*2250 G8.5 STSP fab8 2200*2500 CPT G6 Longtan L2 1500*1850 Hannstar G5 STSP fab3 1200*1300 Note 1: CTSP stands for Central Taiwan Science Park Note 2: STSP stands for Southern Taiwan Science Park Unit: Thousand Units 2015 Market Intelligence & Consulting Institute Page 2 of 20
Korean Large Area TFT-LCD Panel Production Capacity by Maker, 1Q 2014-4Q 2015 Unit: Thousand Units Company Generation Fab Substrate Size G5 ChonanL5 1100*1250 G5 Chonan L6 1100*1300 Samsung Display LG Display G7 Tangjeong L7-1 1870*2200 G7 Tangjeong L7-2 1870*2200 G8.5 Tangjeong L8-1 2200*2500 G8.5 Tangjeong L8-2 2200*2500 G8.5 Suzhou 2200*2500 G5 Gumi P4 1100*1200 G5 Gumi P5 1100*1250 G6 Paju P61 1500*1850 G6 Paju P62 1500*1850 G7.5 Paju P7 1950*2250 G8.5 Paju P8 2200*2500 G8.5 Paju P98 2200*2500 G8.5 Guangzhou 2200*2500 Japanese Large Area TFT-LCD Panel Production Capacity by Maker, 1Q 2014-4Q 2015 Unit: Thousand Units Company Generation Fab Substrate Size Sharp G8 Kameyama fab2 2160*2400 G10 Sakai fab1 2850*3050 PLD G8.5 Himeji 1 2200*2500 2015 Market Intelligence & Consulting Institute Page 3 of 20
Chinese Large Area TFT-LCD Panel Production Capacity by Maker, 1Q 2014-4Q 2015 Unit: Thousand Units Company Generation Fab Substrate Size G5 Beijing B1 1100*1300 BOE-OT G6 Hefei B3 1500*1800 G8.5 Beijing B4 2200*2500 G8.5 Hefei B5 2200*2500 G8.5 Chongquing B8 2200*2500 CSOT G8.5 Shenzhen fab1 2200*2500 G8.5 Shenzhen fab2 2200*2500 CEC Panda G6 Nanjing fab1 1500*1800 G8.5 Nanjing fab2 2200*2500 Tienma G5 Shanghai fab1 1100*1300 Infovision G5 Kunshen fab1 1100*1300 Century Display G5 Shenzhen fab1 1200*1300 2015 Market Intelligence & Consulting Institute Page 4 of 20
Worldwide Market Demand Back to Index Worldwide Large Area TFT-LCD Panel Demand Volume, 1Q 2014-4Q 2015 Unit: Thousand Units Panel Demand Volume YoY Growth 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 Thousand Units 2% 2% 1% 1% 0% -1% -1% -2% Panel Demand Volume YoY Growth 2015 Market Intelligence & Consulting Institute Page 5 of 20
Monitor Panel Demand Back to Index Worldwide Monitor Panel Demand Volume, 1Q 2014-4Q 2015 Unit: Thousand Units Panel Demand Volume YoY Growth 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Thousand Units Panel Demand Volume YoY Growth 0% -1% -2% -3% -4% -5% -6% -7% 2015 Market Intelligence & Consulting Institute Page 6 of 20
Worldwide Monitor Panel Market Demand Volume Share by Screen Size, 1Q 2014-4Q 2015 15.x" (Standard) 17.x" (Standard) 19.x" (Standard) 20.x" (Standard) 15.x" (Wide) 17.x" (Wide) 18.x" (Wide) 19.x" (Wide) 20.x" (Wide) 21.x" (Wide) 22.x" (Wide) 23.x" (Wide) 24.x" (Wide) > 24.x" (Wide) Total 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1Q14 > 24.x" (Wide) 2Q14 3Q14 24.x" (Wide) 4Q14(e) 23.x" (Wide) 1Q15(f) 2Q15(f) 22.x" (Wide) 3Q15(f) 4Q15(f) 21.x" (Wide) 20.x" (Wide) 19.x" (Wide) 18.x" (Wide) 17.x" (Wide) 15.x" (Wide) 20.x" (Standard) 19.x" (Standard) 17.x" (Standard) 15.x" (Standard) 2015 Market Intelligence & Consulting Institute Page 7 of 20
Notebook PC Panel Demand Back to Index Worldwide Notebook PC Panel Demand Volume, 1Q 2014-4Q 2015 Unit: Thousand Units Panel demand Volume YoY Growth 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Thousand Units 4% 3% 2% 1% 0% -1% -2% -3% Panel demand Volume YoY Growth 2015 Market Intelligence & Consulting Institute Page 8 of 20
Worldwide Notebook PC Panel Deamnd Volume Share by Screen Size, 1Q 2014-4Q 2015 12".x 13".x 14".x 15".x 17".x >17" Others Total 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Others >17" 17".x 15".x 14".x 13".x 12".x 2015 Market Intelligence & Consulting Institute Page 9 of 20
TV Panel Demand Back to Index Worldwide TV Panel Market Volume, 1Q 2014-4Q 2015 Panel Demand Volume YoY Growth Unit: Thousand Units 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Thousand Units 10% 8% 6% 4% 2% 0% -2% -4% Panel Demand Volume YoY Growth 2015 Market Intelligence & Consulting Institute Page 10 of 20
Worldwide TV Panel Market Volume Share by Screen Size, 1Q 2014-4Q 2015 <26" 26-29" 30-32" 37~40" 42~47" 48~52" >52" Total 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% >52" 48~52" 42~47" 37~40" 30-32" 26-29" <26" 2015 Market Intelligence & Consulting Institute Page 11 of 20
Supply and Demand Area Back to Index Worldwide Large Area TFT-LCD Panel Supply and Demand Area, 1Q 2014-4Q 2015 Unit: Thousand Square Meter Supply Demand S/D Sufficiency Ratio Note 1: Supply and demand volumes are calculated based on quarterly basis Note 2: Sufficiency ratio between 97.5% and 102.5% is regarded as supply-demand balance 45,000 42,000 39,000 36,000 33,000 30,000 27,000 24,000 21,000 18,000 15,000 12,000 9,000 6,000 3,000 0 Sufficiency Ratio:Supply/Demand-100% 120% 115% 110% 105% 100% 95% 90% Oversupply Balance Shortage Supply Demand S/D Sufficiency Ratio 2015 Market Intelligence & Consulting Institute Page 12 of 20
Intelligence Insight Back to Index Shipment Surface Area of Large Area Panels to Grow 5% in 2015 As for product mix adjustments, panel suppliers had postponed their plans to shift large area panel capacity away to small and medium area panels, as the market demand for small and medium-sized applications fell short of expectations in the second half of 2014. Suppliers who already allocated some production capacity to smaller panels still reserve partial production capacity for large area panels, like AUO's L5D plant. Innolux only shifted away production capacity of its T1 plant in Chunan, Taiwan, for small and medium area panels while retaining capacity for large area panels at T2. 2015 Market Intelligence & Consulting Institute Page 13 of 20
Regarding Korean suppliers, Samsung Display was downbeat about the worldwide notebook PC market and shifted panel production capacity to tablet panels since 2013. However, as shipments of Samsung's own brand tablets did not live up to expectations in 2014, the company cut back panels for use in tablets. In contrast, the worldwide notebook PC shipments turned out to be stronger than anticipated; supplies of panels of some specific sizes even ran tight. For this reason, Samsung reallocated production capacity back to notebook PCs in the second quarter of 2014, helping boost overall shipment area of large area panels. Yet, in the long run, notebook PC panels are anticipated to have lower profit margins compared to other applications, and the market's growth momentum will be rather limited. Hence, panel suppliers tend to take a more conservative attitude towards producing notebook PC panels. It is anticipated that panel suppliers will focus on increasing shipment volume and adoption share of large area panels for high-end notebook PCs as they bring higher profit margins. Shipment Volume of Large Area Panels to Increase by 6.7% Year-on-year in 2015 2015 Market Intelligence & Consulting Institute Page 14 of 20
Shipments of LCD monitor panels in 2015 will drop against 2014 due to limited capacity planning. Yet, the mainstream panel sizes are expected to expand from 18.5" and 21.5" to 19.5" and 23.6", respectively. Overall, demand for large area TFT-LCD panels, on an area basis, is projected to reach 151.7 million square meters in 2015, up 6.7% year-on-year. LCD TV Branded Vendors' Increasing Shipments in 2015 to Dispel Doubts of Panel Oversupply; End-user Market Demand Remains the Deciding Factor 2015 Market Intelligence & Consulting Institute Page 15 of 20
2015 Market Intelligence & Consulting Institute Page 16 of 20
Appendix Back to Index Research Scope This research focuses on large-area TFT-LCD (Thin Film Transistor Liquid Crystal Display) panels for major applications including notebook PC, LCD monitor, LCD TV, and others. Large-area TFT-LCD panels are further segmented by technology into a-si (Amorphous Silicon) TFT-LCD and p-si (Polycrystalline Silicon). Companies surveyed include Taiwanese large-area TFT-LCD panel makers. Their production and shipment locations include Taiwan, China, Japan, Korea, Southeast Asia, North America, Latin America, Western Europe and other European countries, and other regions. Companies Covered AUO, BOT, CEC Panda, Century Display, CPT, CSOT, Hannstar, Infovision, Innolux, LG Display, PLD, Samsung Display, Sharp, Tienma Product Definitions Large-area TFT-LCD Panel Large-area TFT-LCD panels are TFT-LCD panels diagonally measuring 10.4" and larger. A TFT-LCD panel is composed of two glass substrates sandwiching a layer of liquid crystal, with transistors inlaid on the back glass substrate and a color filter attached to the front glass. When voltage is applied to a transistor, the liquid crystal twists to change the polarization of the light, determining the brightness of the pixel formed. The color filter then renders each pixel either red, blue, or green to form an image on the panel. Product Technology Definitions a-si TFT-LCD a-si TFT-LCD panel uses amorphous silicon semiconductors, non-alkaline glass substrates, as well as the NMOS (Negativechannel Metal-oxide Semiconductor) transistor structure, and is produced under 350 degrees Celsius. Due to the low electron mobility of amorphous silicon, this technology requires the attachment of external driver circuits. 2015 Market Intelligence & Consulting Institute Page 17 of 20
p-si TFT-LCD p-si TFT-LCD panel adopts polycrystalline silicon semiconductors, and is divided into two categories in accordance to the production temperature needed: HTPS (High Temperature Polycrystalline Silicon) and LTPS (Low Temperature Polycrystalline Silicon). HTPS TFT-LCD technology, used mainly on microdisplays, requires temperatures of over 600 degrees Celsius, uses quartz glass substrates, and is based on the principle of SPE (Solid-Phase Epitaxy). LTPS TFT-LCD technology, used on large panels, is produced at temperatures under 600 degrees Celsius, employs non-alkaline glass substrates, and is based on the ELA (Excimer Laser Annealing) and CLC (Continuous Wave-laser Lateral Crystallization) methods. Compared to a-si panel, p-si TFT-LCD panels have significantly superior electron mobility and allow integration of driver ICs -- such as digital-analogue converters as well as the memory and circuits of image processors -- onto the substrate itself. Business Type Definitions ODM ODM (Original Design Manufacturing) entails collaborative product design between manufacturer and customer, or product design autonomously undertaken by the manufacturer within parameters established by the customer. Following customer verification and order placement, the manufacturer proceeds with production and assembly. The manufacturer does not participate in customer activities related to product conception, branding, sales, or logistics. OEM OEM (Original Equipment Manufacturing) entails production and assembly within customer-specified parameters and according to product specifications designated by the customer. The manufacturer does not participate in customer activities related to product conception, branding, sales, or logistics. OBM OBM (Own Brand Manufacturing) entails the oversight of product conception, production, branding, sales, and logistics activities by manufacturers themselves. Any goods shipped to customers carry the brand of the manufacturer. 2015 Market Intelligence & Consulting Institute Page 18 of 20
Private Label Private label entails product conception, design, and production by manufacturers. Customers affix their own brand and handle branding, sales, and logistics activities. In the PC industry customers within the private label business model are typically referred to as clone or white box makers, most of which are regional channel players or system integrators. In the communications industry, such customers are usually brandname telecoms, channel players, or system integrators. Geographic Definitions Other Asian Countries Bangladesh, Bhutan, India, Indonesia, Malaysia, Mauritius, Nepal, North Korea, Seychelles, Sikkim, Singapore, Sri Lanka, Thailand, The Philippines, Vietnam North America United States, Canada Latin America Argentina, Bahamas, Belize, Bolivia, Brazil, Chile, Colombia, Colombia, Costa-Rica, Cuba, Dominica, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Uruguay, Venezuela Western Europe Austria, Belgium, Denmark, England, Finland, France, Germany, Greece, Holland, Ireland, Italy, Norway, Portugal, Spain, Sweden, Switzerland Other European Countries Albania, Andora, Bulgaria, Croatia, Bosnia, Czech Republic, Gibraltar, Hungary, Latvia, Lithuania, Macedonia, Moldavia, Romania, Russia, San Marino, Serbia, Slovakia, Slovenia, Malta, Ukraine, Vatican Other Oceania Australia, Fiji, Nauru, New Zealand, Saipan, Tahiti, Tonga, Western Samoa 2015 Market Intelligence & Consulting Institute Page 19 of 20
Africa Algeria, Congo, Djibouti, Egypt, Ethiopia, Ivory Coast, Kenya, Lesotho, Liberia, Libya, Morocco, Mozambique, Somalia, South Africa, Sudan, Swaziland, Tanzania, Tunisia, Uganda, Western Sahara, Zimbabwe Middle East Aman, Armenia, Azerbaijan, Bahrain, Cyprus, Georgia, Iran, Israel, Jordan, Kuwait, Lebanon, Palestine, Qatar, Saudi Arabia, Turkey, United Arab Emirates, Yemen 2015 Market Intelligence & Consulting Institute Page 20 of 20