Graphic LCD module makers explore burgeoning TFT-LCD line

	Xiamen Ocular’s GDM240128A model comes with an LED or EL backlight and T6963C controller.

China’s graphic LCD module makers are slowly shifting to TFT-LCD types to meet trends for panels with better display resolution, long operating life and low power consumption. The variant currently accounts for 30 percent of total output, and the share could rise in the years ahead although overall supply remains dominated by TN, STN and CSTN kinds.

The high technology and capital threshold has kept many smaller companies from exploring the TFT category, but more players are expected to enter the line in coming years. Enterprises, mostly big operations, are emphasizing large TFT-LCD modules suitable for TVs and similar applications.

In line with these initiatives, major LCD panel providers are developing next-generation technologies. BOE’s 6G panel project in Hefei, Anhui province, started mass production in May, achieving a monthly capacity of 90,000 units. With an 8.5G facility in Beijing scheduled to begin large-scale manufacture in 3Q11, the maker forecasts total output value will hit $1.2 billion this year.

Embarking on a similar undertaking is Huaxing Optoelectronics, a joint venture by TCL and Shenzhen Century Science and Technology. It is scheduled to commence mass manufacture of TFT-LCD panels by year-end. These units will be adopted in 26, 32, 46 and 55in LCD TVs. Tianma, meanwhile, has invested in a 4.5G line for 10.4in and smaller models.

Local LCD TV specialists are also exploring the upstream channel to maximize cost benefits.

Manufacturing the panels in-house can lower outlay by 5 to 10 percent, allowing suppliers to sell LCD TVs in competitive prices. Companies such as Hisense, Konka, Skyworth and TCL invest up to $147 million in making the component, which takes up 30 to 35 percent of overall costs.

With these expansion projects under way, Digitimes Research forecasts China will outstrip Japan as the world’s third-largest producer of large TFT-LCD panels.

Graphic types account for more than 70 percent of China’s total yield of LCD modules, and the share is projected to exceed 75 percent in coming years. The annual output growth will hit 15 to 20 percent, while the export volume will rise by more than 20 percent. At present, China supplies over 30 percent of the world’s graphic LCD modules.

The continuous upturn in the line will be driven mainly by the consumer electronics sector. DisplaySearch forecasts LCD TV shipments alone will hit 215 million units this year and 270 million in 2014 from 190 million last year. This translates to a more than 90 percent share of global TV exports. Japan, North America and Europe are the major markets at present, although Russia and the Middle East will take the bulk of deliveries in the next few years.

Orders for LED-backlit TVs will surge to 240 million units in 2014 from 30 million in 2010 on the back of decreased LED prices, estimates DisplaySearch.

Graphic LCD modules will likewise benefit from a burgeoning 3D TV segment, with shipments projected by iSuppli to hit 12.9 million by year-end and double to 27.4 million in 2012. The figure could even soar to 79 million in 2015. LCD monitors and laptops will also spur the line.

China’s supplier pool consists of 160 players, one-third of which are foreign-invested enterprises. More than 60 percent of them are based in Guangdong province, while others carry out production in Fujian, Zhejiang and Jiangsu provinces. Sharp, Samsung and AU Optronics have set up factories in China to take advantage of a complete industrial chain and abundant labor resource.

Most makers concentrate on OEM and ODM orders. At Shenzhen Jinghanda Electronics Co. Ltd, these take up more than 80 percent of overall yield.

TN, CSTN, STN & TFT-LCD modules
Hong Kong: Wide application spurs segment
Taiwan: Line emphasizes basic types
Product gallery

	The HG3202407 model from Hangzhou Tsingtek has 320x240-dot resolution and 122x92mm viewing area and measures 153x120x12.3mm.

Graphic LCD modules from China are available in TN, CSTN, STN and TFT-LCD kinds. The last two are offered in 1.5, 1.8, 2, 2.5, 3, 3.5, 4, 5.5, 6 and 7in configurations for portable electronics such as mobile phones, digital cameras and GPS. TFT-LCD variants with 10.4, 14, 15, 17, 18, 19 and 20in panels are typically used in laptops.

Hangzhou Tsingtek Display Co. Ltd produces TN, STN, FSTN and TFT-LCD modules in 5.7in versions. Boasting increased reliability and low voltage and power dissipation, units find application in household appliances, automotive electronics, and communication and industrial equipment.

Models across the different module types support 96x60, 122x32, 128x128, 160x128, 160x160, 192x64, 240x128, 128x64 or 320x240 display resolution, with the last three leading output. For the backlight, there are LED, EL and CCFL. COB, COG and TAB are the popular options for packaging.

Companies such as Hangzhou Tsingtek also pursue other kinds, including OLED types. These versions have a wide viewing angle, light weight, high brightness and luminous efficiency, quick response and anti-shock features.

LCD panels are key to manufacture. Variants used in low-end TN, STN and CSTN modules are sourced locally, while those for upscale TFT-LCD units are obtained from foreign providers. Material costs are projected to drop by 5 to 10 percent in the next few years as domestic LCD panel production takes off.

Other inputs such as ICs are from Taiwan, Japan, South Korea and the US. For the controllers, suppliers turn to Epson, Holtek, Samsung, Sitronix, Sunplus and Toshiba.

Most companies have raised prices to offset high raw material and labor costs.

Shenzhen Jinghanda increased quotes by 10 percent, but will keep rates stable the rest of this year to avoid losing orders. Xiamen Ocular Optics Co. Ltd, meanwhile, is considering implementing adjustments after keeping prices unchanged last year.

Broadening utilization is encouraging Hong Kong's graphic LCD module makers to strengthen the line and offer a diverse range of products. Better versatility in text applications compared with alphanumeric counterparts ensures wide use in mobile phones, digital photo frames and other portable electronic devices, medical equipment, monitoring instruments and A/V systems. To meet users' varying requirements, different sizes are offered.

Acemi Optronics Technology, for example, specializes in small and medium TFT-LCD kinds, with units ranging from 2.5 to 21.6in. These have customized driver board solutions and are used in portable DVD players, video door phones and GPS devices.

Hong Kong makers also produce 18in large-screen models and types suitable for transportation and construction equipment, power machineries and elevators.

The graphic LCD modules come with TN, HTN, STN, CSTN and FSTN panels. Bona Fide Technology Ltd offers these aside from TFT varieties. Some companies provide other formats such as EBT. Units can also integrate EL, CCFL or LED backlight. For the last, there are white, blue, yellow green and amber.

Businesses likewise emphasize attributes that affect performance, including operating temperature, IC compatibility and power consumption.

TAB, COB, COF and COG bonding technologies are adopted in production. Several enterprises carry out color printing, black mask coating and drilling to enhance aesthetics. Makers positioning themselves as one-stop shop solution providers can conduct PCB layout, software development and driving circuit design, and offer related components.

Microtech Technology Co. Ltd carries out electronic and mechanical design and manufacturing services. Its product catalog consists of more than 1,000 graphic LCD modules, including TN, CSTN, FSTN and TFT.

Manufacturers of graphic LCD modules in Taiwan are concentrating on FSTN, although a growing number of them are switching to TFT LCD and OLED. With production shifting to mainland China and price competition tightening, many companies pursue the line as a secondary business.

Suppliers are nevertheless rolling out variants that cater to requirements in consumer electronics and industrial equipment. The mainstream models measure 2 to 4in.

Compared with STN, FSTN delivers improved contrast ratio and can achieve monogram effect. The version adopts a different type of polarizer. Positive FSTN modules work well under sunlight as they have no backlight.

Companies use COG or COB in packaging. The first is widely employed as it can reduce module size and weight.

Quotes are determined by the resolution and dimensions. Entry-level units priced below $10 have 128x64 pixels, while midrange types with 240x64 or 240x128 are between $25 and $35. Upscale versions that boast 360x240 pixels or higher go for $50.

Taiwan has 20 to 30 graphic LCD module makers, half of which are trading companies that offer ODM services. Winstar and Wintek are the key players.

Many suppliers believe OLED will replace graphic LCD varieties in the years ahead. Compared with their traditional counterparts, the former boasts better brightness, contrast ratio and viewing angle. The type is also thinner and can function without a backlight, although it is 10 to 30 percent more expensive than graphic LCD kinds.

Related report:
TFT-LCD modules: R&D plays up touchscreen, LED backlight

Bona Fide Technology Ltd
(Hong Kong)

Model: 3.5in TFT-LCD Module
Description: TFT, transmissive LCD; white LED backlight; 320x240-dot RGB resolution, 16 million colors; 3.5in viewing area; 12 o'clock viewing direction; -20 to 70 C operating, -30 to 80 C storage temperatures; 77.8x64.5x3.04mm; HX8218A, HX8615A IC

Formike Electronic Co. Ltd
(mainland China)

Model: WG1206Z0SBY6G
Description: STN, transflective; yellow- green backlight; 128x64 resolution; 50x30mm active area; 55x45x10mm; RoHS

Palm Technology Co. Ltd
(Taiwan)

Model: PMG1212H
Description: White LED backlight; 128x128-dot resolution; 87.01x87.01mm active area; 0.65x0.65mm dot size, 0.68x0.68mm pitch; 111x107mm

Powertip Technology Corp.
(Taiwan)

Model: D-GFC30029B-0-Q
Description: FSTN, positive; 128x64-dot resolution; up to 32 grayscale; paper-white polarizer; halogen-free; RoHS

Shenzhen Jinghanda Electronics Co. Ltd
(mainland China)

Model: FDCG12864K
MOQ: Negotiable
Delivery: 15 days
Description: STN, FSTN; white, blue, green, yellow-green, amber, red LED backlight; 128x64-dot matrix; 62x44mm viewing area; 1/64 duty; COB blue, gray, yellow green; 5V input voltage

Solomon Goldentek Display Corp.
(mainland China)

Model: GATV57NP8G1RA
Description: 5.7in TFT LCD; 640x480-pixel resolution, 262,000 colors; 12 o’clock viewing direction; 144x104.6x13mm