Gen 8 Now the Most Important Fab for LCD TV Panel Production

41% of LCD TV Panels Were Produced on Gen 8 Lines in Q3’10; Notebook PC Panels Increasingly Coming from Gen 6

Sort Date: 12022010

SANTA CLARA, Calif., December 2, 2010—As panel makers expand, they are increasingly utilizing Gen 8 fabs for LCD TV panel production. According to the latest Quarterly Large-Area Production Strategy Report, 41% of LCD TV panels were production on Gen 8 lines in Q3’10, a leap from 35% in Q2’10. The share is expected to grow to 42% in Q4’10 based on panel makers’ plans. Meanwhile, 6% of notebook PC panels were made on Gen 6 lines in Q3’10, and will increase to 9% in Q4’10.

“The evolution of fab generations in the TFT LCD industry is not only a shift to larger glass substrates but also involves moves to increase production efficiency. For example, 32”W LCD TV panels were originally designed to be made in Gen 6 fabs, but more than 70% of the 32”W are currently produced in Gen 8 fabs and Gen 6 fabs have gradually shifted to LCD monitor panel production,” noted Shawn Lee, senior analyst for TFT LCD production strategy at DisplaySearch.

Lee continued, “The recent adoption of 0.5 mm glass substrates in Gen 6 and larger fabs also enhances production flexibility, as panel makers can make notebook and monitor panels in Gen 6+ fabs using the same glass thickness as in smaller fabs. The 16:9 aspect ratio prevailing in PC displays also enables Gen 5 and 6 fabs to produce notebook and monitor panels, respectively. For example, panel makers like AUO, CPT and LG Display are starting to produce notebook PC panels in Gen 6 fabs, while AUO, LG Display and Samsung are producing LCD monitor panels in Gen 7 fabs, and Samsung and LG Display are producing LCD monitor panels in Gen 8 fabs. This flexibility benefits panel makers as they can more effectively leverage their existing capacities. At the same time, this trend will create trade-offs between production of IT and TV panels.”

Gen 5 fabs dominate production of mini-note/slate PC panels, including 10.1” mini-note and 9.7” iPad panels, and 89% of notebook PC panels are made in Gen 5 fabs, from 11.6”W to 18.4”W. Gens 5–7 are currently the main fabs producing monitor panels, while 50% of TV panels are made in Gen 6 or Gen 7 fabs.

Table 1: Q3’10 Large-Area TFT LCD Production Shareby Fab Generation (Units)




LCD Monitor



3.5 & Smaller
















































Source: DisplaySearch Quarterly Large-Area Production Strategy Report

Another way to look at production strategy is by glass substrate input for each application. In area terms, panel makers allocated 5% of Gen 5, 25% of Gen 5.5, 65% of Gen 6, 78% of Gen 7, 97% of Gen 8 and 100% of Gen 10 for TV panel production.

Table 2: Q3’10 Glass Substrate Input Mix for Each Fab Generation (Area)


Gen 5

Gen 5.5

Gen 6

Gen 7

Gen 8

Gen 10

LCD Monitor














Mini-Note PC/Slate







Notebook PC





















Source: DisplaySearch Quarterly Large-Area Production Strategy Report

Other key findings from the report include

  • TFT LCD production inputs were 34.1 million square meters in Q3’10, a 10% decline from Q2, due to reduced capacity utilization. In Q4’10, panel makers are targeting 38.5 million square meters input, as they gradually increase utilization.
  • In unit terms, Korea dominated panel production with 52% share in Q3’10, up from 47% in Q2’10. Taiwan accounted for 38% in Q3’10, down from 42% in Q2’10. Japan had 6% and China 4% in Q3’10. The shares are expected to hold in Q4’10.
  • In Q3’10, LG Display dominated input area with 27%, followed by Samsung at 24%, Chimei Innolux at 16%, AUO at 14%, and Sharp at 8%. Based on panel makers’ current production plans, the shares will be similar in Q4’10.
  • For LCD monitor panel production, area inputs in Q4’10 will be dominated by LG Display with 27%, Chimei Innolux (26%), Samsung (18%), and AUO (15%).
  • LG Display is producing 9.7” slate PC panels on Gen 3.5 and 5, while Chimei Innolux and Samsung are using Gen 5. LG Display plans to produce 9.7” panels on a Gen 6 line starting in 2011.
  • In Q3’10, accounting for capacity utilization, Gen 8 led in glass substrate input area, accounting for 27% of global capacity, followed by Gen 7 with 23%, Gen 6 with 20%, and Gen 5 with 19%. Gen 5.5 accounted for merely 2% of input area and Gen 10 for 4%.

The DisplaySearch Quarterly Large-Area Production Strategy Report tracks TFT LCD manufacturers’ production strategies in each generation fabs by applications by sizes and by aspect ratio, includes forecasts by size, by aspect ratio, by panel manufacturers and by each fab. This unique report is the most comprehensive way to track panel maker capacity allocation and production strategy, as well as each panel makers’ utilization in each fab. For more information, contact Charles Camaroto at 1.888.436.7673 or 1.516.625.2452, email, or contact your regional DisplaySearch office in China, Japan, Korea or Taiwan.

About DisplaySearch
Since 1996, DisplaySearch has been recognized as a leading global market research and consulting firm specializing in the display supply chain, as well as the emerging photovoltaic/solar cell industries. DisplaySearch provides trend information, forecasts and analyses developed by a global team of experienced analysts with extensive industry knowledge and resources. In collaboration with the NPD Group, its parent company, DisplaySearch uniquely offers a true end-to-end view of the display supply chain from materials and components to shipments of electronic devices with displays to sales of major consumer and commercial channels. For more information on DisplaySearch analysts, reports and industry events, visit us at Read our blog at and follow us on Twitter at @DisplaySearch.

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