FLAT PANEL DISPLAY (LCD)
INDUSTRY UPDATE
June 2018
McIlvaine Company
Table of Contents
_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Lextar Starts Production of Mini LED
Backlighting Devices
Lextar Electronics will begin small-volume production of mini LED backlighting
devices in third-quarter 2018, according to company chairman David Su.
Lextar also focuses LED backlighting on high-end devices including flip-chip,
WCG (wide color gamut) and high-voltage models.
Lextar has become a main supplier of LED devices used in smartphone flashes for
supply chain makers for China- and Africa-based smartphone vendors. For LED
lighting, Lextar focuses on outdoor lighting including streetlamps, bay lights
and lighting used in building facets, landscape and stages. In addition, Lextar
has extended LED lighting to automotive applications, with high-power LEDs
adopted for automotive headlights and taillights of electric motorcycles.
In view of relatively low gross margins for lighting, Lextar aims to decrease
the revenue proportion for lighting devices and products from 45.64% in 2017 to
about 30% in 2018.
Lextar has begun trial production at its new factory in Chuzhou, central China,
in second-quarter 2018 and will start volume production in the following
quarter. The factory is Lextar's third in China.
GIS to Begin
Shipping In-Display Fingerprint Modules
General Interface Solution (GIS) is expected to begin volume shipments of
in-display fingerprint modules to first-tier smartphone makers in the third
quarter of 2018 at the earliest, according to company chairman Chou Hsien-ying.
GIS is a specialized provider of integrated touch display solutions. With a
management team experienced in touch and LCD display design and manufacturing,
the company features a “MegaSite” business model to provide total touch display
solutions combining cover glass, touch sensors, and LCD display modules. The
business model, enabling in-depth technology and design integration, has won
wide recognitions from world-class customers around the globe.
GIS has pioneered in cutting-edge touch technologies, including large-size, 3D,
super-slim, and narrow-border solutions. As a company providing the most
complete and advanced solutions in the touch industry, GIS is able to serve a
variety of application markets, ranging from IWB to wearable device.
Established in 2011, GIS has built operations sites in Taiwan and China, and has
won top international customers in Asia, America, and Europe. With long-term
partnerships with first-tier companies, the company is aimed to differentiate
itself and grow its competitiveness by providing cross-border, extensible, and
multi-application products and services.
Chengdu CEC Panda Display Expanding TV
Panel Output
As one of the major IT hubs in China, Chengdu, the capital city of the
southwestern province of Sichuan, is actively developing a mega complex in the
suburban Shuangliu District to cluster mainly semiconductor players and some
prospective investors in other IT fields, seeking to accelerate strategic
developments of IC designs, software design tools and smart manufacturing.
Revenues from the complex are estimated to reach CNY20 billion (US$3.11 billion)
by 2020 and break CNY100 billion by 2030, according to Chengdu Xingu Industrial
Parks Development.
Among the companies there is Chengdu CEC Panda Display Technology, a newcomer to
China's LCD panel industry but touted as the country's most successful homegrown
panel development project.
The company spent only 16 months completing the construction of its 8.6G panel
line, from groundbreaking in September 2016 to successful trial production in
January 2018, compared to 18-20 months required by other peer makers, according
to Li Xiangfeng, director of the firm's production process. He revealed that the
young company has a young workforce, with the average age of all its employees
reaching only 26.8.
LCD displays will remain the market mainstream within the next five years, with
4K displays already becoming standard screens for midrange to high-end TVs and
8K TVs to be available soon, Lee commented, adding that 8K panels are already on
his company's production agenda for 2018.
With a total investment cost of CNY28 billion, the plant mainly adopts 8.6G
Nikon lithography machines and applies five-mask metal oxide processing
technology in manufacturing 4K, 8K IGZO (indium gallium zinc oxide) TV panels,
according to Lee.
Lee continued that his plant now mainly manufactures large-size IGZO TV panels,
available in 50-inch, 58-inch, 65-inch and 68-inch specs, and part of its
capacity may be also arranged for producing 32-inch and 39-inch LCD monitor
panels, depending on customer demand. He disclosed that the plant is also likely
to roll out panels sized 98-inch or over 100-inch by the end of 2018.
As China's first fully homegrown 8.6G metal oxide LCD panel line, the plant
features 15-20 smart manufacturing systems that can provide real-time data
analysis concerning equipment usage conditions to help boost production
efficiency and yield rates, Lee stressed.
Lee revealed that in its first-phase development, the plant's monthly production
capacity will reach 60,000 pieces in September 2018, and the second-stage
development will see trial production begin in August, with a combined monthly
capacity of 120,000 panels to be achieved in the first quarter of 2019 at the
earliest.
At the moment, Chengdu CEC Panda Display Technology is teaming up with Sichuan
University of Electronic Science and Technology to set up a display technology
exchange platform. The platform will allow major panel makers to exchange and
share information on the latest tech innovations, which can then be incorporated
into commercial production - a joint effort that can upgrade the development and
competitiveness of China's LCD panel industry, according to Lee.
Corning Opens World's Largest LCD
Glass Substrate Facility in China
The new Hefei facility will supply BOE, China's leading panel maker
Corning Incorporated hosted a launch ceremony for its new Gen 10.5 liquid
crystal display (LCD) glass substrate manufacturing facility co-located with the
BOE Technology Group Co. Ltd. (BOE) plant in the Hefei Xinzhan Hi-Tech
Industrial Development Zone in the Anhui Province, China.
This new facility will enable Corning to become the first manufacturer of TFT-
grade Gen 10.5 substrates in the world. The largest LCD commercially available
glass substrates are 2,940 mm by 3,370 mm, providing the most economical cuts
for 65-inch and 75-inch TVs. The Gen 10.5 substrates manufactured at the Hefei
facility use Corning® EAGLE XG® Slim glass.
Corning began shipping BOE production samples from the plant in late 2017. The
market for large-size TVs, defined as TVs 60" and larger, is projected to grow
at a compound annual growth rate of more than 20 percent for the next several
years. The Hefei facility is Corning's third LCD glass plant on the Chinese
mainland. The company also operates Gen 8.5 LCD glass plants in Beijing and
Chongqing.
"The Hefei Gen 10.5 LCD glass facility is the next milestone in the display
business, enabling us to make the world's largest glass substrate to support the
growing global demand for large size TVs," said James P. Clappin, president of
Corning Glass Technologies, at the launch ceremony. "As the industry's
innovation and market leader with the most experience in large Gen substrate
production, we're proud to support the development of China's LCD industry."
"We're delighted to bring the world's best-in-class Gen 10.5 substrate
technology to China in support of the continued growth of the LCD industry and
in support of BOE, our valued strategic customer," commented John Zhang, general
manager of Corning Display Technologies at the event. "This plant allows us to
deliver on our long-term commitment to BOE and participate in the
fastest-growing LCD market in the world while maintaining our overall LCD glass
supply demand balance."
In December 2015, with the support of the Hefei municipal government and other
local officials, Corning announced its plans to invest in a new LCD glass
facility in the Hefei Xinzhan Hi-Tech Industrial Development Zone in the Anhui
Province, China.
Commenting on the announcement, Li Fang, president and general manager of
Corning Greater China, said, "A combination of critical factors made Hefei the
ideal location for this Gen 10.5 plant. The strong government backing, and a
skilled local talent base, were supplemented by the area's excellent
infrastructure. We appreciate the support we have received from the Hefei
municipal government and the industrial development leadership from Anhui
provincial officials."
About Corning Incorporated: Corning (www.corning.com) is one of the world's
leading innovators in materials science, with a more than 165-year track record
of life-changing inventions. Corning applies its unparalleled expertise in glass
science, ceramic science, and optical physics along with its deep manufacturing
and engineering capabilities to develop category-defining products that
transform industries and enhance people's lives. Corning succeeds through
sustained investment in RD&E, a unique combination of material and process
innovation, and deep, trust-based relationships with customers who are global
leaders in their industries. Corning's capabilities are versatile and
synergistic, which allows the company to evolve to meet changing market needs,
while also helping our customers capture new opportunities in dynamic
industries. Today, Corning's markets include optical communications, mobile
consumer electronics, display technology, automotive, and life sciences vessels.
Corning's industry-leading products include damage-resistant cover glass for
mobile devices; precision glass for advanced displays; optical fiber, wireless
technologies, and connectivity solutions for state-of-the-art communications
networks; trusted products to accelerate drug discovery and delivery; and
clean-air technologies for cars and trucks.
Excellence Optoelectronics to Build
Plant in Michigan
LED automotive lighting module and device maker Excellence Optoelectronics will
build a plant in Michigan to better serve its North American clients, according
to company chairwoman and president Fanny Huang.
Excellence has seen booming orders for LED automotive lighting modules, with
shipments scheduled through 2021, Huang said.
Automotive lighting accounts for 85% of Excellence's consolidated revenues,
streetlamps and traffic lights 12%, and industrial lighting 3%. North America
accounts for 75% of its sales, China 14%, and Asia (excluding China) 9%.
For automotive lighting modules shipped to North America, Excellence currently
undertakes designs in Taiwan and production in Taiwan or China, which takes much
time and incurs high distribution cost.
As General Motors, Ford Motor and Chrysler are all headquartered in Michigan,
Excellence has decided to set up a plant in the US state in 2018 and combine
existing marketing bases and warehouses there to minimize product transportation
cost and compete for orders.
The new factory, which will have automated production lines and begin production
as early as the end of 2019, will mainly cater to US-based clients, while the
firm's existing factory in China will be dedicated to serving China and Europe
clients.
Excellence started producing LED automotive lighting modules in 2000 and
obtained the first order in a small volume from US-based Flex-N-Gate in 2004,
with large-volume shipments beginning 2008. Currently, Flex-N-Gate,
Germany-based Hella KGaA Hueck and Canada-based Magna International reportedly
are the three biggest clients for Excellence.
Excellence has reported consolidated revenues of NT$291.4 million (US$9.8
million) for April, slipping 1.74% sequentially but growing 58.77% on year, and
those of NT$1.115 billion for January-April rose 49.29% on year.
China Star Optoelectronics Technology (CSOT) has signed a deal which calls for
an investment of up to CNY42.68 billion (US$6.682 billion) to build a new 11G
flat panel plant - the company's second fab of that generation.
The second 11G plant, dubbed t7, is slated for commercial production in March
2021 with a monthly capacity of 90,000 substrate (3,370 by 2,940mm each) and
will focus on production of 8K LCD panels in 65-, 70- and 75-inch sizes as well
as 65- and 75-inch OLED panels.
TCL, the parent company of CSOT, has indicated that the t7 will produce OLED
panels using an injected printing technology.
The establishment of the t7 fab will help accelerate the development of
large-size OLED panels in China, while also enabling TCL to enhance its
depolyments in the OLED TV market, according to industry sources.
Meanwhile, CSOT has completed the move-in of major equipment, including exposure
and CF ITO (indium tin oxide) equipment, at its first 11G line, dubbed t6,
recently. The t6 is expected to kick off commercial production in early 2019.
McIlvaine Company
Northfield, IL 60093-2743
Tel:
847-784-0012; Fax:
847-784-0061
E-mail:
editor@mcilvainecompany.com
Web site:
www.mcilvainecompany.com