7in & above IPS TFT-LCD modules on drawing board

More makers are expected to release models with greater viewing angle and color quality for tablet PCs and automotive displays.

China manufacturers of 7in and above TFT-LCD modules are looking to adopt in-plane switching screen technology to upgrade their selections, targeting mainly tablet PCs and automotive displays. They anticipate IPS, which enables wider viewing angles of up to 178 degrees and more vivid color rendering, will expand from smartphones to larger-screen devices in the next one or two years.

So far, only a few large local companies such as BOE offer the advanced type. The maker, in fact, produced 7in units for Samsung's Tab series in the past two or three years. It also turns out midsize and large variants for other applications. At present, foreign players, including LG-Philips and IDTech, dominate the category.

Besides plans to broaden their range, many China suppliers are increasing output by 5 to 10 percent to meet local and overseas requirement. Globally, shipments of tablet computers are projected to hit 233 million units by end-2015, higher by 8 percent from the previous year, according to Gartner. In 2016, vehicle-use displays will reach 116.8 million units, surging 189 percent from the total in 2012 or posting average annual growth of about 20 percent, said IHS iSuppli.

Shenzhen Rogin Electronics Co. Ltd expects 5 to 10 percent improvement in sales volume by the year's end. It turns out mainly 3.2 to 10in TFT-LCD modules, and more than 50 percent of shipments are for automotive displays.

The majority of local makers are confident TFT LCD will continue to be the mainstream technology in the display industry in two or three years despite the emergence of OLED. Still, companies such as BOE have ventured into OLED manufacture. The latter screen type, which boasts self-luminance attributes, may gradually find wide adoption in tablet and notebook PCs in coming years and is therefore regarded as a threat. In mainland China alone, the OLED sector looks to realize $6.7 billion in revenue or nearly triple the value in 2012, according to FPDisplay. Smartphones, tablet PCs and TVs are the key demand drivers.

There are more than 500 manufacturers of TFT-LCD modules in the mainland. Only a small number release large kinds, while the majority offer small and midsize units. Over 70 percent of the suppliers are locally owned businesses and the rest with investment from Taiwan and Hong Kong.

The key production areas are the coastal provinces of Guangdong, Jiangsu and Zhejiang, particularly the cities of Shenzhen, Dongguan, Suzhou and Ningbo.

Due to intense competition, only a few players are expected to venture into the line in the next one or two years, and some small operations will exit.

See a comparison table of TFT-LCD module suppliers on GlobalSources.com