2016 Display component market review and 2017 projection · Driver IC for LTPS Notebook PC 14...

© 2016 IHS Markit. All Rights Reserved. © 2016 IHS Markit. All Rights Reserved.

2016 Display component market review and 2017 projection

Irene Heo, Principal analyst

2016.11.2 for IHS Technology Korea Display Conference

© 2016 IHS Markit. All Rights Reserved.

Polarizer

Two digit decrease in polarizer price

Polarizer makers continue to be in red

Demand of Non-TAC to be increased due to LCD TV enlargement

Imbalanced Supply/Demand of polarizer and sub-films

Concentration of polarizer manufacturing lines in China

2


Decrease in TV polarizer price has reached 20%

3

26.07

20.15

-8.2%

-13%

-14.0%

-12.0%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

0.00

5.00

10.00

15.00

20.00

25.00

30.00

Q1'1

4

Q2'1

4

Q3'1

4

Q4'1

4

Q1'1

5

Q2'1

5

Q3'1

5

Q4'1

5

Q1'1

6

Q2'1

6

Q3'1

6

Q4'1

6

Q1'1

7

Q2'1

7

Q3'1

7

Q4'1

7

Area P

ric

e (

US

$)

ASP TV area price ASP Q/Q TV Q/Q

0.6% 0.2%

-15.6%

-2.2% -1.9%

-2.8%

-1.0%

8.6% 7.7%

1.7%

6.5% 5.3%

3.4% 4.1%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2014 2015 2016 2017 2018 2019 2020

Po

lariz

er r

even

ue (

Bil.U

S$

)

Revenue Revenue Y/Y Demand Y/Y

Source : IHS Report ‘Display Optical film market tracker’


LCD TV enlargement and Non-TAC polarizer

40.1

41.8

19.3%

19.7% 21.1%

23.4% 23.2%

25.8%

27.3% 28.5%

29.5%

16.0%

18.0%

20.0%

22.0%

24.0%

26.0%

28.0%

30.0%

35.0

36.0

37.0

38.0

39.0

40.0

41.0

42.0

43.0

44.0

Pan

el averag

e s

ize (

inch

)

TV panel average size(inch) Non TAC adoption rate(%)

4

TAC 62%

COP 21%

Acryl 16%

Others 1%

Compensation Film

77.7% 75.0% 71.8% 63.8%

22.3% 25.0% 28.2% 36.2%

0%

20%

40%

60%

80%

100%

2015 2016 2017 2020

No

n-T

AC

ad

op

tio

n r

ate

(%

)

TAC Non-TAC

TAC 88%

Acryl 6%

PET 5%

COP 1%

Surface treatment

TAC 75%

COP 10%

Acryl 12%

PET 3% Others

0%

Total

[Market share of PVA protection film usage]

Source : IHS Report ‘Display Optical film market tracker’ IHS Report ‘Large-area display market tracker’


Correlation between TV size and the adoption of Non-TAC polarizer

5

0.0

10.0

20.0

30.0

40.0

50.0

60.0

Majo

r p

an

el m

aker’s

averag

e T

V s

ize(in

ch

)

AUO BOE China StarInnolux Corp. LG Display SamsungSharp

Source : IHS Report ‘Display Optical film market tracker’ IHS Report ‘Large-area display market tracker’

0%

10%

20%

30%

40%

50%

60%

70%

80%

No

n T

AC

ad

op

tio

n r

ate

by p

an

el m

aker (

%)

AUO BOE CSOTInnolux Corp. LG Display SamsungSharp


Concentration of polarizer manufacturing lines in China

Investment plans of polarizer in China

Maker Location Film width (mm)

Capacity (Km2/month)

MP

Nitto Shenzhen 1,490 640 2018

Sumitomo Wusi 1,490 1,400 Q3’17

SDI Wusi 2,260 1,700 Q4’16

LGC Nanjing 2,260 2,700 Q1’16

CMMT Kunshan 1,490 720 Q2’17

Kunshan 2,260 1,200 1Q’18

Sunnypol Shenzhen 1,490 900 Q2’17

Hefei 2,260 1,000 Q1’18

SAPO Shenzhen 1,490 700 Q2’17


6

44 54

82

145

200 207 207

-

50

100

150

200

250

2014 2015 2016 2017 2018 2019 2020

Po

lariz

er c

ap

acit

y b

y r

eg

ion

(M

il.s

qm

)

Taiwan Korea Japan China


Imbalanced Supply/Demand of polarizer-by region

2%

9% 11%

13%

19%

29%

12%

3%

12%

21%

14% 12%

0%

5%

10%

15%

20%

25%

30%

35%

-

5

10

15

20

25

30

35

40

45

50

S/

D i

n K

ore

a (

Mil.s

qm

)

Demand Supply Glut (S-D)/D

7

-53% -52% -56%

-60%

-54%

-46% -47%

-42% -38%

-21% -23%

-20%

-70%

-60%

-50%

-40%

-30%

-20%

-10%

0%

-

5

10

15

20

25

30

35

40

45

S/

D i

n C

hin

a (

Mil.s

qm

)

Demand Supply Glut (S-D)/D


3%

9%

15% 15% 16%

24%

39%

335% 376%

428%

449%

449%

436%

367%

-21% -23%

-26%

-35% -32%

-26% -24%

-49%

-55%

-47%

-25%

-14%

-26%

-35%

18% 17% 18%

18% 21%

18%

14%

-

100

200

300

400

500

600

700

-60%

-40%

-20%

0%

20%

40%

60%

Wo

rld

wid

e s

up

ply

/d

em

an

d (

Mil.s

qm

)

Demand Supply Korea JapnaTiawan China Worldwide

2014 2015 2016 2017 2018 2019 2020

330%

~ ~


Imbalanced Supply/Demand of polarizer-by UV lines

8

8% 8%

2%

8% 7%

10%

2%

15% 16%

27%

16%

11%

17% 19%

18%

10%

14% 15%

6%

2%

7% 10%

0% 0%

12%

21% 19%

16%

21%

31%

15%

9%

14%

25%

18% 16%

21%

26%

20% 18%

21%

24%

16%

12%

16%

20%

10% 10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

-

10

20

30

40

50

UV

pro

cess s

up

ply

/d

em

an

d

(M

il.s

qm

)

UV Demand UV Supply UV Glut (S-D)/D Overall Glut

22% 22%

25%

31%

32% 32% 32%

34% 36%

15%

20%

25%

30%

35%

40%

45%

50%

-

100

200

300

400

500

600

700

800

2014 2015 2016 2017 2018 2019 2020

UV

cap

acit

y (

Mil.s

qm

)

UV capacity Overall capacityUV share UV share%

42%

29%

39%

49%

75%

0%

10%

20%

30%

40%

50%

60%

70%

80%

UV

cap

acit

y s

hare

by m

aker

Nitto Denko Sumitomo LG Chem. SDI BQM

0%

Nitto Denko

35%

Sumitomo

26%

LG Chem.

30%

SDI 9%



Display Driver IC

Cost reduction - TRD, DRD, GOA

High resolution – Heat problem from DDIC

Changes in bonding technology

System on Film

9


Driver IC market forecast

• DRD and TRD will have a negative impact on the driver IC demand forecast, even though 4K products will grow

• Gate driver IC is expected to fall due to the increase in share of GOA.

• Almost small/medium panels use a single chip for driving.

10

Source : IHS Report ‘Display Driver IC market tracker’

5.3 5.3

4.6 4.3 4.2

4.0 4.0 3.8 3.8

51% 46% 45%

49% 52%

55% 55% 58% 59%

0%

20%

40%

60%

80%

100%

0.0

1.0

2.0

3.0

4.0

5.0

6.0

2014 2015 2016 2017 2018 2019 2020 2021 2022

Driv

er I

C r

even

ue (

Bil.U

SD

)

Total Small/medium Large

5.2 5.5 5.1 4.8 4.9 4.9 4.9 5.0 4.9

1.4 1.3 1.1

0.9 0.6 0.2 0.1 0.0 0.1

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

201420152016201720182019202020212022

Driv

er I

C d

em

an

d (

Bil.U

nit

s)

Source IC Gate IC


GOA double rate/tri rate driving structure

• DRD: One s-channel accepts two signal of g-channel. (S-ICs 1/2)

• TRD: One s-channel gets to control three sub pixels at the same time. (S-ICs 1/3)

• GOA is necessary for DRD or TRD due to DRD/TRD asks large number of Gate ICs.

11

DRD Structure Conventional type, GOA

Gate IC on panel

TRD Structure



Cost reduction of DDIC

• DRD + GOA and TRD + GOA are good ways to reduce costs. Panel makers are aggressively applying DRD + GOA and TRD + GOA for 2016 TV models.

• Chinese VA panel makers have an interest on TRD, so they are focusing on Samsung’s TRD products.

12

Cost reduction of DDIC

Resolution Source pin Conventional GOA GOA+DRD GOA_TRD

HD 1366 x 768 720 6 + 2 = 8 6 + 0 = 6 4 + 0 = 4 2 + 0 = 2

1440 3 + 2 = 5 3 + 0 = 3 2 + 0 = 2 1 + 0 = 1

FHD 1920 x 1080 960 6 + 2 = 8 6 + 0 = 6 4 + 0 = 4 2 + 0 = 2

4K 3840 X 2160 960 12 + 4 = 16 12 + 0 = 12 8 + 0 = 8 4 + 0 = 4

8K 7680 X 4320 960 24 + 8 = 32 24 + 0 = 24 16 + 0 = 16 8 + 0 = 8

The driver IC interfaces are based on faster standards such as USI-T and EPI.

Source: IHS © 2016 IHS



4K Driver IC trends

8%

14%

24%

35%

41% 44%

47% 49%

52% 54%

1% 2% 2% 5% 6% 7% 8% 9% 10%

11%

1% 2% 2% 3% 3% 4% 4%

0%

10%

20%

30%

40%

50%

60%

Rati

o o

f h

igh

reso

luti

on

pan

el (o

ver 4

K)

LCD TV Desktop MonitorMobile PC Mobile phone

13

• Demand for 4K panels will increase across many applications. Demand for driver ICs will increase accordingly.

• 4K TV demand is growing rapidly and will become a major panel application in 2017.

• Panel makers want to reduce the number of driver ICs necessary for a 4K panel. And it can cause the heat problem from driver IC. Solving the heat problem may be critical success factors.

Source : IHS Report ‘Display long-term demand forecast tracker’


Driver IC for LTPS Notebook PC

14

• Driver IC for LTPS Notebook PC is as same as Smartphone Driver IC. Usually LTPS Driver IC one source channel supports RGB 3 colors. Some makers are trying 6 split driving for LTPS Driver IC.

• a-Si 4K NotePC panel needs 960channels 12 source Driver IC. 6 split driving of LTPS requires only 2 chips. (12*0.8 = 9.6$ vs. 2*1.8 = 3.6$)

a-Si Structure Normal LTPS Structure LTPS 6 Split Structure



Issues concerning heat problem from DDIC

• CPU Timing controller Driver IC

15

Proposed solution

Part Solution

Driver IC package Special resin • Special resin to absorb the heat is applied to the

part of Driver IC after mounting DDIC on COF

COF

Structural modification • To raise the thickness of Cu layer of COF can give DDIC package some space to emit the heat from Driver IC.

• Adoption of long COF can help to emit the heat from Driver IC through it’s long body.

Ultra low temperature COF • Add layers like Al and Cu which has the heat sink function onto COF

The heat sink film

• Very simple and effective, but expensive solution, some very large and expensive products for special usage like PID are adopting graphite sheet as role of the heat sink

Source: IHS © 2016IHS


Touch embedded driver IC and TDDI

2 13

50

131

225

346

468

595

0% 1%

2%

5%

8%

12%

16%

20%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

0

100

200

300

400

500

600

700

2015 2016 2017 2018 2019 2020 2021 2022

TD

DI d

em

an

d (

Mil

.Un

its)

TDDI Demand (Q2'16) TDDI Demand (Q3'16)

TDDI Ratio

16


• Synaptics, FocalTech, and Novatek are TDDI chip vendors.

• Synaptics was the only supplier until Q2’16, “One package two chips” has been generally used.

• As of Q3’16, Single chip solution was introduced, and panel makers started to apply it aggressively.

• Accordingly, IHS has increased TDDI forecast as compared to Q2’16.


Changes in bonding solution - Mobile phone

17

DIC

Conventional bezel

DIC COF

Slim bezel

DIC

Like bezel-less

Bonding technology of panel and DDIC

COG COF /COP

Merit • Able to connect DDIC to the panel glass without extra linking components

• Super slim light

• Chips and modules can be miniaturized • Able to folded and bended by the film’s

flexibility

Demerit

Requires sufficient space to place DDIC • Increase in cost due to extra film

• Limitation on resolution

Source: IHS © 2016IHS

[ Side view and bezel type by bonding technology ]


18

DDIC

PCB

Color filter TFT

Conventional bonding type

Changes in bonding solution - TV

d


Flexible OLED components trend

Polarizer

Touch sensor

19


Three types of On-cell for flexible touch

20

Flexible OLED Flexible OLED

Touch layer

Cover lens Cover lens Cover lens Cover lens

Circular polarizing film Circular polarizing film Circular polarizing film

Polarizer

Flexible OLED

Touch layer

On-cell for flexible touch Y-OCTA Integration with barrier

Polarizer Polarizer Polarizer

Flexible OLED

Integration with Polarizer

• Current development trends are based on the on-cell for flexible type, but they can be further categorized into three types by manufacturing process


Process comparison between “Y-OCTA” and “Integration with barrier film”

21

Y-OCTA

Overcoat Metal sputter for touch sensor Low temperature sensor patterning

Integration with barrier film, Transfer method

Carrier film

Carrier film

Metal sputter for touch sensor

Carrier film

Sensor patterning Transfer sensor pattern to barrier film

Flexible OLED Flexible OLED Flexible OLED Flexible OLED

Flexible OLED

Flexible OLED

Lamination barrier film on to TFE layer

Flexible OLED

Integration with barrier film, TCTF solution

ITO sputter on barrier film

Flexible OLED

ITO patterning Transfer AgNW layer AgNW patterning

AgNW patterning

Hitach TCTF** film


For ideal flexible OLED solution

22

Cover lens

Flexible OLED

On-cell touch’s stack up

OCA

TAC film PVA film TAC film Circular polarizing film

Polarizer

Coating polarizer Pol-less

Cover lens

Flexible OLED

OCA

Total # of film substrates: 0~1 substrate

Cover lens

Flexible OLED

OCA

TAC film

Total # of film substrates: 1~2 substrates

Coated pattern of PVA+ Circular polarizing film

Integration with Cover lens

Cover lens

Flexible OLED

OCA Coated polarizing layer

Total # of film substrates: 0~1 substrate

Antireflection

• Reducing the number of substrates used in OLED module is one of the most important factor for flexible display

CP


23

Thank you for your attentions

[email protected]

2016 Display component market review and 2017 projection · Driver IC for LTPS Notebook PC 14...

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Transcript of 2016 Display component market review and 2017 projection · Driver IC for LTPS Notebook PC 14...