LCD panels shift from a-Si backplane technology

Smart living has been spawning a wide array of connected devices, many of which have a digital display, control panel or similar features. These products are increasingly found not only in homes but also vehicles, offices and commercial spaces such as hotels, malls, retail stores and healthcare facilities.

In smart home devices alone, the global market reached $80.83 billion in 2019, according to Verified Market Research. It is projected to increase to $207.88 billion in 2027 at a CAGR of 13.52 percent. This offers a huge opportunity for the LCD panel manufacturing industry.

China, the source of 40 percent of this optoelectronic component, stands to benefit from this growing application base, including its homegrown sector. Based on IDC's forecast, the country will be shipping 500 million smart home devices in 2023, with sales value expected to push past $80 billion the following year. In 2020, China's outbound volume was 220 million units.

With this positive overall outlook for terminal devices, LCD panel suppliers interviewed by Global Sources Electronic Components are confident of a 5 to 10 percent annual increase in demand.

To thrive in this dynamic market, Chinese companies are working to broaden their capability to produce LCD panels based on newer backplane technologies such as indium gallium zinc oxide (IGZO) and low-temperature polycrystalline silicon (LTPS). This is in order to realize greater energy efficiency and display performance than conventional amorphous silicon (a-Si) offers.

LCDs based on a-Si backplanes, however, will remain in mainstream supply in China for now, thanks to their low-cost advantage. But this is likely to be for the near term only as new-generation devices will require higher display resolutions that are achievable with less power.

Production growth

With positive projections giving manufacturers optimism, some will pursue expansion efforts.

Shenzhen Royal Display Co. Ltd, for instance, plans to add 1,400sqm to its factory area by the end of 2021 in order to boost yield by 20 to 30 percent, anticipating higher demand. About 15 percent of its LCD panels are for smart living devices. The supplier, which allocates 80 percent of total volume produced for export markets, foresees shipments will rise by at least 10 percent in 2022. Palm Technology Co. Ltd, meanwhile, plans to maintain the 10 percent increase in output that it implemented this yearthrough 2022.

Hundreds of manufacturers in China offer LCD panels and most have products for smart living devices. Between 10 and 30 percent of their aggregate shipments go to this application, a ratio that can be adjusted to meet new demand.

The key Chinese players in this display category include BOE, CSOT and Tianma. Their foreign counterparts with factories in the country include Samsung and LG Display.

The majority of China's LCD panel manufacturers are located in Shenzhen, Dongguan and Zhongshan, with some in Wuhan, Hefei, Chengdu and Chongqing.

2.5 to 10in LCD panels

For smart living devices, Chinese companies offer a range of LCD panels based on different technologies. There are STN, CSTN and TFT-LCD kinds in typical sizes of 2.5 to 10in. Commonly available displays use an a-Si backplane and include a capacitive touch panel.

These units have 240x480dpi, 480x480dpi, 640x480dpi, 800x480dpi or 1024x768dpi resolution, 6 or 12 o'clock viewing direction and -20 to 70 C operating temperature. They are treated with an anti-glare finish and use materials that are compliant with RoHS.

TFT-LCD types and 4 to 7in sizes dominate shipments.

Customization is widely accepted and continues to be a major R&D driver. This extends to the sources of materials and components such as polarizers, color filter film, liquid crystals and lightguides, which may be obtained from domestic or foreign providers.

Many LCD panel manufacturers raised their prices by 10 to 20 percent in early 2021 due to higher input costs, according to companies interviewed.

This upward trend in materials and components will likely persist through 2022 and lead to a 10 percent increase in product quotes.

The products in this gallery have been handpicked by our market analyst for representing current trends in LCD modules from the Chinese mainland and Taiwan region makers.

7in LCD module, 1024x600 pixels

Hengcheng Electronics Technology (HK) Co. Ltd markets this 7in LCD module, the HC070T 25028-07, with 1024x600-pixel resolution, 250cd/sqm brightness and -20 to 70 C operating temperature. The viewing angles are 75, 75, 70 and 75 degrees.

The minimum order is 500 units. Delivery is within seven days.

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2.8in LCD module, 360cd/sqm brightness

This LTK028QV25BYL0-3028 model from Shenzhen Leadtek Co. Ltd is a 2.8in LCD panel with 240x320-dot resolution, 360cd/sqm brightness and 80-degree viewing angle. The RoHS-compliant unit operates in -10 to 60 C.

A minimum order of 1,000 units is required for delivery in 15 days.

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4.3in LCD module, 480x272 dots

Palm Technology (Taiwan) Co. Ltd's PT0434827TC-A4 4.3in LCD module has 480x272-dot resolution, 400cd/sqm brightness, 12 o'clock viewing direction and -20 to 70 C operating temperature.

The negotiable minimum order has a lead time of seven days.

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3.5in LCD module, 4:3 aspect ratio

From Shenzhen Royal Display Co. Ltd, this AT056TN52 V.3 LCD panel has 480x272-pixel resolution, 200cd/sqm brightness, 4:3 aspect and 500:1 contrast ratios, 25ms response time and -20 to 70 C operating temperature. The 3.6in unit's viewing angles are 50, 70, 70 and 70 degrees.

Order quantity is negotiable. Delivery takes seven days.

Inquire now

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