Shift to LTPS technology keeps TFT-LCD module line afloat

Key display manufacturers in mainland China lead the switch from mainstream a-Si backplanes to keep the TFT-LCD module sector buoyant amid OLED's rise.

Faced with diminishing growth rates as OLED overturns market shares in the display industry, mainland China suppliers of TFT-LCD modules highlight a more advanced backplane technology to drive the line.

Key players such as BOE and Shenzhen Tianma have adapted the LTPS method used in turning out AMOLEDs for the older display, moving it away from conventional a-Si. They have been mass manufacturing such products, which boast improved definition, response time and power consumption. The majority, consisting of small and midsize operations, however, continues to employ a-Si in TFT-LCD modules in sizes up to 17in.

The latter type still leads total local production, but the ratio has been declining in recent years. The downtrend was notable in 2017, when yield dropped to 790 million units from 810 million in the previous year, according to 58Display.com. During the same period, LTPS-based variants rose from 620 million to 730 million units. This trajectory is projected for the a-Si segment in the next two or three years.

Despite the generally lackluster outlook, most mainland suppliers maintained production for TFT-LCD modules and will do so in coming months to cater to the remaining market. A few, including Disea Electronics Co. Ltd, will boost this. The maker looks to raise volume by another 7 percent in the months ahead, having invested in a new automatic production line in 2018. It exports 65 percent of turnout and anticipates 5 percent growth in one or two years.

Overall, mainland TFT-LCD module manufacturers hope demand will increase by less than 5 percent or, at least, stay level in the near term. To prepare for the industry shift, however, a number will gradually focus on OLED production.

Based on estimates, OLED shipments have already overtaken that of the LTPS TFT-LCD counterpart in the smartphone market in 2018. This is because major brands such as Apple, Samsung, Microsoft and Lenovo have switched to the advanced display in recent rollouts, and extended adoption to other mobile devices. With this trend, the AMOLED category is forecast to hit $67 billion by the end of 2020 or at a CAGR surpassing 40 percent, according to 58Display.com.

There are about 400 makers of TFT-LCD modules in the mainland and all offer units in up to 17in. They include companies specializing in LCD and other panels, and those that market related optoelectronic components.

More than 70 percent of the suppliers are locally owned and the rest with investment from Hong Kong or Taiwan. New players are expected to join the line, but there will also be exits as competition heats up.

The main production hubs are in Guangdong and Fujian provinces, specifically in the cities of Shenzhen, Dongguan and Zhongshan in the first and Xiamen in the latter. There are also factories in the provinces of Zhejiang and Jiangsu.

Typical a-Si selection

Units adopting a-Si backplanes form the bulk of the mainland's supply of TFT-LCD modules in sizes of up to 17in. These have 500cd/sqm brightness, 500:1 contrast ratio and 170-degree maximum viewing angle.

By resolution, there are 272x480, 480x854, 720x1280, 768x1024, 1280x1024 and 1080x1920-dot variants. All releases support a life span exceeding 30,000 hours.

The key applications are smartphones, tablet and notebook PCs, and monitors. As demand is stagnating in these markets, however, local makers will focus on smart home devices in the next two years.

The main components in the production of TFT-LCD modules include the displays, touch panels, LED backlights and PCBs. Most companies purchase them from foreign or domestic providers, depending on customer preference. The rest of the materials are usually from local sources.

Input costs are expected to remain stable, but due to competition and OLED’s market ascendancy, prices of TFT-LCD modules are forecast to continue dropping. In 2018, the reduction was between 5 and 10 percent.

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

7in IPS TFT-LCD module supports full viewing angle

Model ZW-T070SWH 7in TFT-LCD module from Disea Electronics Co. Ltd adopts IPS and touch technologies. It has 1024x600-dot resolution, 0.1506x0.1432mm dot pitch, 262,000 colors and 420cd/sqm brightness. The active area is 154.21x85.92mm and can be viewed from any angle. The unit operates in -20 to 70 C.

A minimum order of 100 units is for delivery within 45 days.

Inquire Now

5in TFT-LCD module renders in 800x480 dots

Dongguan Fangsheng Electronic Co. Ltd's 5inch model is a TFT-LCD module with an OTA7001A_C or OTA9960A driver IC. It has 800x480-dot resolution, 262,000 colors and 6 o’clock viewing angle. Outline dimensions are 108x64.8mm.

The negotiable minimum order has a delivery lead time of 7 days.

3.5in TFT-LCD module with 320x240 dots

This 3.5in TFT-LCD module from Palm Technology Co. Ltd, PT0353224TC-E501 model, has 320x240-dot resolution, 0.219x0.219mm dot pitch and up to 262,000 colors. The 76.9x63.9x4.3mm unit integrates MCU and RGB interfaces. Its operating temperature is -20 to 70 C.

The minimum order is negotiable. Delivery lead time is 7 days.

Inquire Now