IGZO-based types boost 3 to 6in TFT-LCD module selection

Greater resolution and reduced power consumption will drive the trend from traditional a-Si units. Lead China companies offer LTPS variants as well.

Indium gallium zinc oxide or IGZO backplane is expected to attract the attention of more mainland China companies turning out 3 to 6in TFT-LCD modules. The technology enables higher resolution at lower power consumption, besides the added advantage of compatibility with LCD and OLED screens.

BOE, one of the major suppliers of TFT-LCD panels and modules, is the first to invest in the production of oxide units there, undertaking the project in its facility in Hubei province in 2013. Shenzhen Tianma and Shanwei Truly have also ventured into the subcategory. Local output for the variant is forecast to climb between 10 and 15 percent in 2016.

Initiatives to develop more LTPS kinds are also under way, led by key companies. BOE and Shenzhen Tianma are manufacturing them on a mass scale now.

Spurring local makers in this direction are upbeat projections fueling the rise in worldwide production capacity for displays based on these backplanes. Oxide TFT LCDs will reach 19 million square meters in 2016 from 3.5 million in 2011, according to NPD DisplaySearch. LTPS units will double to 18 million square meters from 2013.

For the majority of mainland suppliers, a-Si units will continue to dominate production.

Overall, manufacturers will capitalize on the line's expanding market. They target smart home appliances and car infotainment devices as the next hot applications. Globally, the first sector will post up to 67 percent CAGR in 2015-19. Total shipments of smart home products are forecast to hit 180 million units in 2019, according to Beijing-based Sina news. The automotive infotainment industry will achieve aggregate sales value of $41.2 billion in 2016, growing nearly 5 percent on average, based on iSuppli's estimate. At present, more than half of domestic companies' shipments are for smartphones.

In 2016, most makers of TFT-LCD modules are anticipating a 10 percent boost in total revenue. Some have raised yield. A-Tops Electronics Co., which turns out mainly 3 to 6in models, jacked up its volume by 20 percent in the previous year and will do so again in the months ahead.

Guangdong province is the largest manufacturing hub for the display product, gathering more than half of the suppliers in key cities Shenzhen and Dongguan. Others are in the provinces of Zhejiang and Jiangsu.

There are more than 500 makers of 3 to 6in TFT-LCD modules in the mainland. The majority likewise offers 6 to 14in models, and LED and OLED displays. Over 70 percent of the supplier pool is locally owned, and the rest with foreign investment, mainly from Taiwan and Hong Kong.

Due to intense competition, no new ventures are expected and small businesses may even drop out of the line in the near term.

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