Tight Supply of AMOLED Mobile Phone Panels Expected in 2H’13, Reports NPD DisplaySearch

AMOLED Demand Forecast to More than Double between Q1’13 and Q1’14; Large-Area FPD Supply Expected to Tighten As Well

Sort Date: 06032013

Santa Clara, Calif., June 3, 2013—Rapidly growing demand for smartphones with larger displays is one of the most positive drivers of the FPD industry in 2013. AMOLED phone panel shipments are projected to reach more than 217 million units this year, up from 134 million units in 2012, which, along with increasing screen sizes, will lead AMOLED demand to grow from 263,000 square meters in Q1’13 to 557,000 square meters in Q1’14.

According to the latest NPD DisplaySearch Quarterly FPD Supply/Demand and Capital Spending Report, the supply of AMOLED panels is expected to tighten in the second half of this year, with the supply/demand ratio expected to fall to 1% in Q4’13. This level means there will be no slack for any supply disruptions, and could lead to shortages.

“Samsung Display still produces the vast majority of commercially available AMOLEDs, and these are mainly used in smartphones. With the recent release of the Galaxy S4 with a 5” full HD AMOLED display, Samsung will need to run its AMOLED fabs at maximum capacity to keep up with expected high demand,” stated Charles Annis, Vice President of Manufacturing Research at NPD DisplaySearch.

“As the supply/demand ratio is expected to tighten dramatically, Samsung is moving to significantly extend capacity at its A2 Gen 5.5 fab this year and next. Additionally, the company may also accelerate its plan for A3, another new AMOLED production line,” added Annis.

Figure 1: AMOLED Supply/Demand Forecast

Source: NPD DisplaySearch Quarterly FPD Supply/Demand and Capital Spending Report

Availability of large-area FPDs (mostly TFT LCD) is also expected to tighten throughout 2013. As prices for TVs continue to fall, consumers are moving to larger sets, helping to drive an increase in area demand. Large-area supply/demand is forecast to decline from 21.9% in Q1’13 to 11.8% in Q3’13. As a result, average fab utilization will likely rise above 85%. With TFT capacity forecasted to grow only 4% in 2014 and demand likely to increase 10%, the tightening is forecast to continue to Q3’14, when large area FPD supply/demand is projected to fall to a very tight 6%.

“Rapid growth of smartphones and tablets, in conjunction with the continued shift towards larger average TV sizes, are driving a recovery of the FPD industry. In Q4’12, average operating margins for FPD manufacturers turned positive for the first time since Q3’10, and this trend is forecast to continue. Additionally, the outlook for fab utilization, equipment spending and technology upgrades is improving this year and potentially will continue into 2014,” added Annis.

Discussion of these topics and much more can be found in the NPD DisplaySearch Quarterly FPD Supply/Demand and Capital Spending Report. The report is a comprehensive guide to the most important metrics used to evaluate supply, demand and capital spending for all major FPD technologies and applications. The report features in depth analysis and critical data in user-friendly Excel pivot tables and detailed interpretation of market and technical trends in PowerPoint. For more information on this report, please contact Charles Camaroto at 1.888.436.7673 or 1.516.625.2452, or contact@displaysearch.com or contact your regional DisplaySearch office in China, Japan, Korea or Taiwan.

About NPD DisplaySearch
NPD DisplaySearch, part of The NPD Group, provides global market research and consulting specializing in the display supply chain, including trend information, forecasts and analyses developed by a global team of experienced analysts with extensive industry knowledge. NPD DisplaySearch supply chain expertise complements sell-through information from The NPD Group, thereby providing 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, visit us at http://www.displaysearch.com/. Read our blog at http://www.displaysearchblog.com/ and follow us on Twitter at @DisplaySearch.

About The NPD Group, Inc.
The NPD Group provides global information and advisory services to drive better business decisions. By combining unique data assets with unmatched industry expertise, we help our clients track their markets, understand consumers, and drive profitable growth. Sectors covered include automotive, beauty, consumer electronics, entertainment, fashion, food / foodservice, home, luxury, mobile, office supplies, sports, technology, toys, and video games. For more information, visit www.npd.com and npdgroupblog.com. Follow us on Twitter: @npdgroup.


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