Display Modules

In 2004, mainland China accounted for 70% of global output of alphanumeric TN LCD modules. Taiwan held about 38% of world market share in the large TFT LCD sector.

With demand expected to surge, this new report helps you stay competitive with data on product trends, pricing strategies and production capabilities of the region's key suppliers.

Plus you'll get profiles of 94 display module manufacturers that give you the hard facts you require to make the tough choices on which your sourcing depends.

Which producers are best positioned to meet rising demand? Which are developing products with the most customer appeal? Get the answers in this insightful report.

What you'll get

Impartial, in-depth profiles of 34 major display module suppliers, including details on production capacities, export markets, quality standards and product development. Based on personal factory visits and interviews with senior managers, this information is available nowhere else

Profile tables of 60 additional manufacturers highlighting key sourcing data such as manufacturing processes, monthly output figures and R&D initiatives

At-a-glance information on 102 of the most popular export display modules, with top-line specifications and full-color pictures

The results of Global Sources' latest supplier survey, summarizing price, product, production and R&D trends for the next 12 months

This report covers: alphanumeric LCD modules, dot-matrix LCD modules, graphics LCD modules, LED displays, OLED displays, polymer LED displays and vacuum fluorescent displays

How you'll benefit

Find out which applications are driving mainland China makers to shift their focus to STN and CSTN LCD module production — and learn how quickly the change will take place

Discover how mainland China and Taiwan manufacturers are using new products to keep up with South Korean and Japanese competitors, and see how those product launches will impact your sourcing decisions

Understand product trends and display module market drivers, with special reports on graphics LCD modules, alphanumeric LCD modules, OLED displays and PDPs

Quickly and easily pre-qualify your next suppliers with listings of all featured manufacturers, including comparable statistics, product-range details and verified contact information

Executive summary

Mainland China has more than 100 display module makers, mostly concentrated in the provinces of Guangdong and Jiangsu. The majority of the production facilities are based in Shenzhen, Shantou, Huizhou and Shanwei, where there are special economic zones offering lower production costs and investment incentives. In 2005, the number of makers is expected to reach about 120.

Mainland China's exports of graphics LCD modules were 48 million units, worth US$540 million, in 2004. Major international markets include the US, Europe and Asia.

In 2005, exports are forecast to expand to 57 million units, valued at US$648 million.

In Taiwan, manufacturers turned out more than 411 million units of TN, STN and CSTN LCD modules in 2004. The output value reached about US$1.55 billion. In 2005, production is forecast to increase to 430 million units, valued at about US$1.6 billion. Nearly all Taiwan LCD panel and module makers manufacture graphics LCDs.

Most of the LCD companies manufacture TN and STN LCD modules utilizing TAB, COG and COB technologies.

Demand for CSTN LCD and TFT LCD modules has increased over the past two years, with CSTN LCD modules receiving wide applications in small- and medium-sized displays, while TFT LCD modules are used in large-sized applications.

Demand is driven by products such as mobile phones, consumer electronics, digital devices, home appliances and automotive systems. Models with brighter displays, higher color resolution and lesser power consumption are increasingly being released.

In the alphanumeric and graphics LCD module segments, the highlights are:
About 80 percent of mainland China's LCD module makers are engaged in the manufacture of alphanumeric LCD modules.

Mainland China's production of alphanumeric LCD modules accounts for 70 percent of the total global output.

The graphics LCD segment accounts for about 50 percent of mainland China's overall LCD module industry.

In 2004, the total output for graphics LCDs reached 80 million units valued at US$900 million.

With the graphics LCD module market forecast to grow 20 percent in 2005, total output is expected to reach 96 million units.

In the flat panel display segment, this report finds that:
Unit production of Taiwan's flat panel display sector reached 536.44 million, valued at US$17.1 billion, in 2004, up 70 percent in value from 2003. One of the main demand drivers is Taiwan's burgeoning PDP industry, which accounted for US$10.95 billion worth of FPDs in the first half of 2004.

Industry overview

Mainland China is one of the world's largest TN LCD and LCD module production hubs. In terms of production value, it ranks fourth worldwide, according to the LCD Professional Association of China Optics and Optoelectronics Manufacturers Association (LCDPA-COOMA). Mainland China's LCD sector is expected to increase by 20 percent in 2005 in terms of sales revenues.

At present, Guangdong, Fujian and Jiangsu are mainland China's major LCD and LCD module production bases. Major production cities include Shenzhen, Shantou, Shanwei, Dongguan, Xiamen, Huizhou, Suzhou, and Nanjing. Mainland China has more than 100 display module makers, with over 50 foreign-invested or foreign-owned companies.

At present, South China, arguably the first location in mainland China to embrace LCD manufacturing, accounts for about 70 percent of the overall number of display module makers. Guangdong alone is estimated to house half of the total number of display module makers in mainland China.

East China, on the other hand, is one of the emerging LCD hubs. Production in east China is focused on STN, CSTN, and TFT and 5G TFT LCD modules. With the continuing influx of foreign investments, mainly coming from Japan, South Korea and Taiwan, east China is expected to become one of the biggest LCD production centers of mainland China.

In Taiwan, output value in the FPD sector reached US$17.1 billion in 2004, up 70 percent over the previous year. Small- and medium-sized TFT LCD panels experienced the most significant growth, registering 140 percent. In terms of investment, Taiwan makers invested about US$7.32 billion in 2004, up 66.2 percent over the previous year, according to the Industrial Economics & Knowledge Center (IEK) of the Industrial Technology Research Institute (ITRI).

Taiwan's flat panel displays are categorized into PDPs, large-sized (≥10in) TFT LCD panels, small and medium-sized (<10in) TFT LCD panels, TN and STN LCD panels, and OLED displays.

Taiwan holds about 38 percent global market share in the large TFT LCD sector, behind South Korea's 44 percent. TN and STN LCD panels comprise the second largest sector in Taiwan, which accounted for about 24 percent of global market share in 2004. In the OLED display segment, Taiwan's market share is about 19 percent worldwide. In the PDP segment, Taiwan's global market share remains at 3 percent.

Increasing focus on STN, CSTN LCD models
Demand for LCD modules is mainly driven by the mobile-phone, consumer-electronics, digital-device, home-appliance and automotive application segments. These sectors are driving more mainland China makers to shift their focus to and invest heavily in STN and CSTN LCD module production.

Mainland China accounts for about 70 percent of the world's alphanumeric TN LCD module production. Despite the stable production growth of TN LCD modules, it is expected that STN and CSTN modules will eat into the market of TN LCDs.

Samples of supplier profile

Andorin OptoElec Technology Co. Ltd
Established in 1997, Andorin OptoElec Technology Co. Ltd manufactures a wide range of LCD modules. The company also offers extensive and complete solutions for LCD module-related products based on customers' needs. Its products are widely used in such applications as tax control machines, medical apparatus and GPS fields.

Since 1998, Andorin has been an acting agent for Sharp LCM. In August 1999, it began developing serial middle -and miniature-sized graphics LCD modules. In 2000, its TCP/TAB LCD module production line was constructed. In the same year, Andorin took over 99 percent of the LCD module market for Mien lottery machines.

To expand its export markets, the company established Hong Kong Andorin Technology Co. in 2001. In 2002, it developed the 57B68 model — a single color 5.7-inch, 320-by-240 LCD module. By August 2003, it had an annual output of over 2 million LCD modules. The company currently has a registered capital of around US$4 million and total assets worth over US$7 million. To meet the tax control machine's special requirements, Andorin also developed a special LCD module that met all the performance needs of China's national standard. In terms of exports, Andorin hopes to open more branch offices around the world in 2005.

Manufacturing capability
The company employs over 150 workers. It plans to expand its production facilities to 8,000 square meters that will include a 520-square meter clean room when it moves into its new factory in August. OEM services account for 5 percent of the company's sales in 2004.

Global Sources had the opportunity to tour Andorin's LCD-module and SMT production lines. Before entering the facility, visitors are required to don anti-static clothing and shoes, then cross and air shower to remove any dust.

Our first stop was the IQC station where we saw one operator checking LCD panels and backlights using one set of Nippon Denshoku equipment. Next was the assembly line with nine sets of COB assembly apparatus imported from Japan. After assembly, the COBs must undergo vibrant testing, high and low temperature testing, cosmetic inspection, and electrical testing before packaging. Lastly, FQA sample checks the products according to AQL 0.4 standards. The FPY can reach 97 percent.

Afterwards, we visited the TAB production line. All LCDs are first inspected by OQC before production, then ACF glue is attached to the LCD and PCB, followed by TAB prepressing, main pressing, assembly, testing, labeling and a QC visual inspection. Packaging is then done. There are two sets of ACF hot-press machines and another six sets of LCD module fixing machines imported from Japan.

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