Application Watch: LCD panel suppliers leverage 'new normal' to increase market penetration

Companies in China's LCD panel manufacturing industry are positioning their VA and TFT LCD panels for smart home devices.

Smart homes are becoming popular amid increasing use of interconnected devices for information, entertainment, safety, convenience and comfort, which enable access, control and automation. New developments in the Internet of Things and artificial intelligence, and the promise of 5G connectivity, are expected to drive this trend further.

Projections for the smart home market are already pointing upward, especially as the COVID-19 pandemic has forced people to spend more time at home and into the new normal. Based on statistics from market research firm Omdia, the number of connected devices used in the home worldwide will rise fourfold between 2020 and 2025. In China, this sector will reach $29.4 billion by the end of 2020 and jump to about $64.3 billion in 2021, according to the Qianzhan Research Institute.

China suppliers of upstream components such as LCD panels expect to benefit, anticipating shipments will rise by about 20 percent in the next one or two years, according to industry sources. Many plan to boost their production. Ebulent Optronics (Shenzhen) Ltd is looking at a 30 percent increase in the coming year. It has purchased $290,000 worth of equipment, including SMT and bonding machines.

To attract market attention, manufacturers will highlight TFT and VA LCD screens, which have advantages of vivid color, high contrast and full viewing angle compared to older types such as TN, HTN, STN and FSTN.

BOE has released TFT-LCD panels based on its self-developed BD Cell display technology, which is based on two-layer cells with pixel partition and micron-fine light control for better contrast, lower power dissipation and a slimmer profile. These products are used not only in TVs but also in smart home, learning and retail applications.

DLC uses IPS-Pro technology in a 10.1in model for smart home products, tablet PCs and mobile navigation systems. The unit has 1280x800-pixel resolution, 0.1695x0.1695mm pixel pitch and 216.96x135.60mm active area.

In the VA LCD panel category, BOE also has a 10.1in a-Si-TFT-LCD model for smart home devices. The unit has 1280x800-pixel resolution, 16.7 million color gamut, 330cd/sqm brightness, 600:1 minimum contrast ratio, 25ms response time and 80-degree viewing angle. Shenzhen Huacaiintroduced VA LCD panels with 1680x1050dpi resolution, 5,000:1 contrast ratio, 0.01ms response time and 180-degree viewing angle.

There are hundreds of LCD panel manufacturers in China, of which more than 70 percent are domestically owned and operate on a small to medium scale. Key homegrown suppliers include BOE and Tianma Microelectronics.

Over half of the production pool is based in Guangdong, specifically in Shenzhen, Dongguan, Zhongshan and Zhuhai. Others are in Xiamen in Fujian province, Changzhou and Suzhou in Jiangsu, and Ningbo in Zhejiang.

Most offer products for smart home devices, which account for 10 to 30 percent of their total shipments. They are ready to adjust the ratio to match orders from the domestic and export markets. At present, these companies send between 30 and 80 percent of deliveries overseas. Major destinations include Europe, North America, East Asia and the Middle East.

The projected boom in the smart home sector is expected to attract more LCD suppliers in the years ahead.

Typical LCD panel selection

Besides VA and TFT-LCD units, which dominate shipments, manufacturers in China continue to produce TN, HTN, STN and FSTN variants with a 50- to 120-degree viewing angle and low power dissipation. Sizes range from 5 to 10in. Models with and without touchscreens are available.

Typical products carry CE approval, are UL-listed and comply with RoHS regulations.

The majority of companies accept customization, orders based on which make up 30 to 60 percent of shipments, while pursuing their own R&D initiatives.

Key components such as ITO glasses, polarizers, filters and substrates are usually obtained from domestic suppliers. Manufacturers turn to foreign providers only when required. For polarizers, the most common overseas sources are Japan and South Korea.

Input costs and product prices are projected to remain stable in the coming months. A reduction is possible, but is likely to be less than 5 percent if it does occur.

The products in this gallery have been handpicked by our China-based market analyst for representing current trends in LCD panels and modules from China makers.

10in LCD panel, renders in 1280x800 pixels

CDTouch Technology Co. Ltd's 10in LCD panel, DLC1010CZK model, delivers 1280x800-pixel resolution and has 0.1695x0.1695mm pixel pitch. The normally black transmissive unit, with LVDS interface, has an active area of 216.96x135.6mm.

The negotiable minimum order has a delivery lead time of 14 days.

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TFT-LCD panel with 450cd/sqm typical brightness

The 8418 model from Ebulent Optronics (Shenzhen) Co. Ltd is a 7in TFT-LCD panel with 1024x600-pixel resolution and 450cd/sqm typical brightness. The unit, with a transmissive polarizer, operates in -20 to 60 C.

A minimum order of 3,000 units is required for delivery in 15 days.

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7in TFT-LCD module, delivers 800x480 dots

This 7in TFT-LCD module from Shenzhen Baileqi Technology Co. Ltd, the Y70002B00N-9483 model, has 800x480-dot resolution, 300cd/sqm brightness and -20 to 70 C operating temperature.

The minimum order is 1,000 units. Delivery is within 30 days.

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7in LCD module with anti-glare coating

Xu Ding Electronics Technology Co. Ltd offers this 7in LCD module, the XTPW70NP07-13 model, with 800x480-dot resolution and 0.1926x0.179mm pixel pitch. The normally white transmissive unit has an anti-glare surface treatment. Dimensions are 164.9x100x4.8mm, with the active area in 154.08x85.92mm.

An order of at least 1,000 units is for delivery within 25 days.

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