According to the NPD DisplaySearch, Apple and Chinese brands are expected to purchase nearly three-quarters (73%) of all high resolution LCDs using LTPS (low temperature polysilicon) and oxide TFT technologies for smartphones.
LTPS and oxide TFT LCDs will comprise 26% of all mobile phone panel shipments this year, an increase of 8 percentage points from 2013, while a-Si (amorphous silicon) LCD is expected to continue losing share. Overall, 467 million LTPS and 42 million oxide LCD panels are forecast to ship this year.
“Apple is expected to debut the new iPhone 6 next month, which will create additional demand for LTPS LCDs,” said Hiroshi Hayase, vice president of NPD DisplaySearch.
“In fact, Apple’s iPhone and China’s emerging smartphone brands are the most important forces driving the rise in LTPS and oxide LCD shipments.”
Apple’s iPhones use only LTPS LCDs, making the company the largest user of this high resolution form of TFT LCD. The company is expected to purchase 96 million iPhone 5 panels and 98 million iPhone 6 panels in 2014, accounting for 37% of all LTPS and oxide smartphone LCDs.
In addition to Apple’s use of LTPS LCDs, Chinese brands have expanded the manufacturing of full high-definition (FHD) resolution smartphones, which has also helped to increase LTPS LCD volumes. Xiaomi, Huawei, Oppo, Lenovo, BBK, and other Chinese brands make up 36% of all LTPS and oxide LCD panel shipments.
On the supply side, Sharp has begun to ship oxide LCDs for smartphones to the Chinese market, particularly to brands like Xiaomi. JDI, through its subsidiary Taiwan Display Inc. (TDI), has become fully operational in Taiwan and is now targeting the Chinese market.
Taiwanese panel makers AUO and Innolux are also expanding LTPS LCD shipments. Furthermore, Tianma, a newcomer to LTPS LCD in China, has finally achieved a qualified LTPS LCD yield rate at its Gen 5.5 line in Xiamen, China.
“Due to the booming market for LTPS LCD in China, we expect panel makers to continue expanding LTPS capacities. However, the capacities of JDI, Sharp, LG Display and other leading suppliers only serve Apple.” Hayase said.
“NPD DisplaySearch tracks new LTPS LCD investments in China, including AUO’s Gen 6 in Kunshan, BOE’s Gen 6 in Ordos, BOE’s Gen 6 in Chengdu, China Star’s Gen 6 in Wuhan, Tianma’s Gen 5.5 in Xiamen, and Foxconn’s Gen 6 in Chengdu. By the end of 2016, there will be at least six Gen 6 LTPS fabs and one Gen 5.5 LTPS fab running in China.”
