LCD Panel Product Mix Shifts

BOE Hydis

To convert two Korean-based LCD (Liquid Crystal Display) monitor panel production lines into making mobile handset panels, one using the TN (Twisted Nematic) technology, the other adopting the AFFS (Advanced Fringe Field Switching) technology.

Planning to lower the production share of monitor panels in Korean-based plants and to increase output of notebook PC panels and small and medium size panels.

Mass production of mobile handset panels to begin in February 2005; plans are to carve into the panel production business in the DMB (Digital Multimedia Broadcasting), HD DSC (High Definition Digital Still Camera), DVC (Digital Video Camera) applications.

CPT

After its second 4.5G plant begins mass production, the player will shift over 70% of the first 4.5G plant's capacity to producing notebook PC panels, including 14.1" and 15.4" displays, with 15.4" panels accounting for around 50% of its notebook PC panel output.

The maker's second 4.5G plant will focus on 17" monitor panel production, while sparing some capacity for 32" TV panels.

Its 6G plant, slated to begin mass production in 2005, is primarily allocated to make 26", 32", 37" LCD TV panels, yet it will contribute some 17", 19" monitor panels initially.

Hannstar

To increase the production share of 19" LCD monitor panels in its 5G plant.

Hitachi

Subsidiary Hitachi Displays to use production lines in its Chiba plant, formerly allocated to produce large LCD TV panels, to output smaller panels for mobile handsets and PCs.

LPL

Allocating part of its second plant to produce of small and medium size LCD panels.

QDI

Lowering the production share of LCD monitor panels, while upping the share of 15" notebook PC panels. The share of 17" monitor panels and 14.1" notebook PC panels has dropped respectively to under 20% and 30%. Production of 15" panels, including that of monitor and notebook PC now account for over 50% of total production.

Samsung

Converting a part of its L4 Tienan plant for small and medium LCD panel production, a measure to strengthen its business in this segment.

Sanyo Epson

Spent 10 billion yen (US$ 95.8 million; US$1= 104.4 yen) in switching one plant in Tottori Japan, previously dedicated to LCD panel production for PCs, to produce advanced panels for mobile handsets.

Major Panel Events

AUO

To buy 193,053 square meters of land from Acer Group with NT$2.8 billion (US$88.6 million; US$1= NT$31.6); AUO's major operations, including a 4G LCD panel plant, two 5G LCD panel plants, and a 5G CF (Color Filter) plant, now operate on the land, situated in Taoyuan Taiwan.

BOE Hydis

Developed a 2" LCD panel for mobile devices, adopting the sub pixel rendering technology. The panel draws approximately 50% less power than existing panels while providing a QVGA (Quarter Video Graphics Array) resolution, a brightness of 300 candelas per square meter, a contrast ratio of 1:500, and has in-built gate-driver IC. The maker will be producing such panel using existing equipment; applications may include higher-end DMB, camera phones, PMP (Portable Multimedia Player).

The first 17" LCD monitor panels shipped from its 5G plant in China.

CMO

Stepping into the LTPS (Low Temperature Poly-Silicon) segment in 2005 by adding equipment to its 3.5G line; equipment set-up is scheduled around March 2005, while mass production will begin three months after.

Expected to start outsourcing LCD module assembly to other makers in the second half of 2005.

CPT

To invest US$22 million into DDMC for a 8% share, and to jointly establish a PDP (Plasma Display Panel) plant with the maker by providing the necessary technology, R&D personnel, land, and capital.

Has allocated US$100 million for investment in China, focusing especially on the LCD module segment.

Dalian Daxian

Plans to pay NEC around US$9.3 million for an old 2.5G TFT LCD line as a first step into the small and medium LCD panel segments; the line's monthly capacity stands at 15,000 substrates.

DDMC

Plans to solicit NT$10 billion (US$316.5 million) from several Chinese companies to construct a PDP plant, slated to be operational in the first quarter of 2006.

ERSO of ITRI

The Taiwanese state-run R&D group has developed two kinds of flexible LCD panels: a 2" TFT (Thin-Film Transistor) LCD panel and a 3" OTFT (Organic Thin-Film Transistor) LCD panel; it has also successfully produced a 20" carbon nanotube field emission backlight, the largest in the world.

Fujitsu

Selling share in PDP joint-venture to Hitachi, while transferring the TFT LCD operations in subsidiary FDTC to Sharp; will henceforth focus on semiconductors, investing 90 billion yen (US$856 million) into the business in fiscal 2005

Hannstar

Having overcome technical bottlenecks, the maker's 5G plant formally entered mass production in January 2005; current equipment allows a 70,000 monthly capacity, yet by the first quarter of 2005 equipment will be set up for a full 120,000 substrate monthly capacity

Hitachi

Will be increasing its share in FHP from 50% to 80.1% and make it a consolidated subsidiary before the end of March 2005. Hitachi will buy the stakes from Fujitsu, who owns the other half of the joint-venture, and have Fujitsu transfer basic patents to itself. The rapid fall in PDP prices has led FHP to postpone mass production at its new plant, situated in Miyazaki Japan, from 2005 to 2006; FHP currently also operates a PDP plant which has a 100,000 monthly capacity

Struck a strategic alliance with Matsushita to fortify its PDP business

LPL

Increased monthly output of small and medium LCD panels, used mostly in mobile handsets, from 1.5 million units in early 2004 to 3.3 million at the end of the year; extended small and medium size LCD panel business to include modules, and plans on strengthening the module segment.

Investing 337.6 billion KRW (US$367.8 million; US$1= 1026.7 KRW) to expand production capacity at its facilities in Gumi Korea; it will also renovate existing production lines; the maker plans on investing 2.6 trillion KRW (US$4.5 billion) in 2005.

Matsushita

Announced its strategic alliance with Hitachi to strengthen PDP business; the makers will collaborate in the development, production, and sales process, and swap intellectual property rights

Plans to increase PDP production equipment through establishing a production system capable of outputting 4.8 million PDP TVs per year starting in 2006. Second phase production at its second plant will begin four months ahead of schedule, while it will be kicking off its third plant in November 2005.

Mitsubishi

The maker, Pioneer, Rohm, and Kyoto University have jointly developed a low-cost, light-weight, bendable organic display panel only 0.2mm thick; the monochrome panel emits blue rays only, yet the makers claim that the technology applied is also capable of making paper-thin panels that display moving images in full colors

NEC

Successfully developed a 15" a-Si (amorphous Silicon) TFT LCD panel with resolution of 1,024 x 768 pixels, has a 170-degree viewing angle, and is capable of displaying 16.8 million colors simultaneously while reproducing 72% of the color gamut set by the Japanese and the US TV broadcasting standards; shipments to begin in February 2005.

Radiant

Investing US$9.8 million over the next three years to establish a LCD module plant in Ningbo and a sales branch in Shanghai China; the investment is expected to double or triple Radiant's current 800,000 unit to 9000,000 unit LCD module capacity, and earn it a share in the CSTN (Color SuperTwisted Nematic) LCD and TFT LCD market.

Samsung

Successfully developed the world's largest flexible TFT LCD panel; the 5" panel can be applied on mobile handsets. Plans to roll out a plastic display using a-Si TFT panels and current LCD production process by 2007, and an OTFT display using the roll-type production process by 2010.

Samsung SDI is hoping to boost efficiency through merger with OLED (Organic Light Emitting Diode) unit Samsung OLED, formerly Samsung NEC Mobile Display. The merger will be completed by April 1, 2005.

Developed 2.32" built-in LCD touch screen, 2.6" a-Si high definition VGA (Video Graphics Array) panel, 7" car TV and navigation WVGA (Wide Video Graphics Array) panel.

Has announced with LPL the decision to raise 17" LCD monitor panel prices by US$5 in February 2005.

To double monthly output of small and medium LCD panels to 12 million units in 2005.

Sharp

Came to a preliminary agreement with Fujitsu to take over the latter's TFT LCD business in subsidiary FDTC, who has posted continual losses. The deal will be inked before March 2005, transferring to Sharp FDTC's personnel, subsidiary in the US, Yonago plant in Japan, related intellectual property rights, Fujitsu Laboratories, as well as the R&D facilities in the laboratories.

Toppan

Developed a new kind of full high- definition screen for RPTVs (Rear Projection TVs); TVs using such screens will be rolled out successively in 2005 and 2006.

Wintek

Aims to heave CSTN LCD panel production to ten million units by the second quarter of 2005, up from seven million units at the end of 2004, after it kicks off the third CSTN line in Suzhou China. Mobile handset applications now accounts for 78% of the maker's product mix.

Manufacturer Forecasts

AUO

Mass production at its 6G LCD panel plant is anticipated to double the maker's LCD TV panel shipments, surpassing 3.8 million units in 2005.

CPT     

Notebook PC panel shipments in 2005 projected to triple what was seen in 2004 to 3.9 million units.

Hannstar   

Shipment in 2005 expected to amount to 12 million units; AOC has expressed demand for four million LCD monitor panels from Hannstar in 2005.

Univision   

Riding on MP3 sales, OLED panel shipment is expected to reach 12 million units in 2005, up from around three million in 2004.