High Manufacturing Costs for AMOLED TV Panels Not Deterring Investment in TFT Capacity, According to NPD DisplaySearch

Manufacturing Costs for OLED TV Panels Much Higher than LCD; Opportunities for Equipment Makers

Sort Date: 09182013

Santa Clara, California, September 18, 2013—With AMOLED display makers looking to increase performance and lower costs, material and equipment manufacturers have an opportunity to grow their businesses by providing products and technologies that address these issues. According to the AMOLED Process Roadmap Report from NPD DisplaySearch, although production costs for AMOLED displays are much higher than for TFT LCDs, particularly for large TV panels, the capacity for AMOLED display backplanes is forecast to grow at a much higher rate than for TFT LCD backplanes.

The vast majority of existing capacity for display backplanes is dedicated to TFT LCD production, but capacity dedicated to AMOLED backplanes, or capacity that can serve either AMOLED or TFT LCD, particularly that which uses oxide TFT technology, is expected to grow very rapidly.

Figure 1: Manufacturing Capacity Forecasting by Application

Source: 2013 NPD DisplaySearch AMOLED Process Roadmap Report

“With the success of the AMOLED displays in Samsung’s Galaxy smartphones, manufacturing for AMOLED mobile displays appears to have matured,” said Jae-Hak Choi, Senior Analyst for FPD Manufacturing at NPD DisplaySearch. “In contrast, OLED TV has experienced various technical hurdles and roadblocks. The primary reason for the high cost of OLED TV is its low yield ratio,” Choi added. “The organic material evaporation process is a bottleneck for OLED TV panels made using the RGB method, and oxide TFT yields have not met expectations.”

According to the NPD DisplaySearch cost model, the manufacturing cost for a 55” TV using TFT LCD TV is $426, while the cost for manufacturing the same size TV with RGB OLED is $7,300, and using WOLED is $3,600. The main reason for the cost discrepancies can be attributed to the current low yields for OLED display manufacturing, the need to invest in expensive manufacturing equipment, and the high cost of OLED materials.

The NPD DisplaySearch AMOLED Process Roadmap Report provides in-depth data and analysis on OLED manufacturing technologies, including materials, backplanes, and encapsulation. It also includes an analysis of the benefits, opportunities, negatives, and challenges for each technology. For more information about this report, please contact Charles Camaroto at 1.888.436.7673 or 1.516.625.2452, e-mail contact@displaysearch.com or contact your regional DisplaySearch office in China, Japan, Korea or Taiwan for more information.

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 http://www.npd.com/ and npdgroupblog.com. Follow us on Twitter: @npdtech and @npdgroup.

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