© 2016 IHS Markit. All Rights Reserved. © 2016 IHS Markit. All Rights Reserved.
2016 Display component market review and 2017 projection
Irene Heo, Principal analyst
2016.11.2 for IHS Technology Korea Display Conference
© 2016 IHS Markit. All Rights Reserved.
Polarizer
Two digit decrease in polarizer price
Polarizer makers continue to be in red
Demand of Non-TAC to be increased due to LCD TV enlargement
Imbalanced Supply/Demand of polarizer and sub-films
Concentration of polarizer manufacturing lines in China
2
© 2016 IHS Markit. All Rights Reserved.
Decrease in TV polarizer price has reached 20%
3
26.07
20.15
-8.2%
-13%
-14.0%
-12.0%
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
0.00
5.00
10.00
15.00
20.00
25.00
30.00
Q1'1
4
Q2'1
4
Q3'1
4
Q4'1
4
Q1'1
5
Q2'1
5
Q3'1
5
Q4'1
5
Q1'1
6
Q2'1
6
Q3'1
6
Q4'1
6
Q1'1
7
Q2'1
7
Q3'1
7
Q4'1
7
Area P
ric
e (
US
$)
ASP TV area price ASP Q/Q TV Q/Q
0.6% 0.2%
-15.6%
-2.2% -1.9%
-2.8%
-1.0%
8.6% 7.7%
1.7%
6.5% 5.3%
3.4% 4.1%
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2014 2015 2016 2017 2018 2019 2020
Po
lariz
er r
even
ue (
Bil.U
S$
)
Revenue Revenue Y/Y Demand Y/Y
Source : IHS Report ‘Display Optical film market tracker’
© 2016 IHS Markit. All Rights Reserved.
LCD TV enlargement and Non-TAC polarizer
40.1
41.8
19.3%
19.7% 21.1%
23.4% 23.2%
25.8%
27.3% 28.5%
29.5%
16.0%
18.0%
20.0%
22.0%
24.0%
26.0%
28.0%
30.0%
35.0
36.0
37.0
38.0
39.0
40.0
41.0
42.0
43.0
44.0
Pan
el averag
e s
ize (
inch
)
TV panel average size(inch) Non TAC adoption rate(%)
4
TAC 62%
COP 21%
Acryl 16%
Others 1%
Compensation Film
77.7% 75.0% 71.8% 63.8%
22.3% 25.0% 28.2% 36.2%
0%
20%
40%
60%
80%
100%
2015 2016 2017 2020
No
n-T
AC
ad
op
tio
n r
ate
(%
)
TAC Non-TAC
TAC 88%
Acryl 6%
PET 5%
COP 1%
Surface treatment
TAC 75%
COP 10%
Acryl 12%
PET 3% Others
0%
Total
[Market share of PVA protection film usage]
Source : IHS Report ‘Display Optical film market tracker’ IHS Report ‘Large-area display market tracker’
© 2016 IHS Markit. All Rights Reserved.
Correlation between TV size and the adoption of Non-TAC polarizer
5
0.0
10.0
20.0
30.0
40.0
50.0
60.0
Majo
r p
an
el m
aker’s
averag
e T
V s
ize(in
ch
)
AUO BOE China StarInnolux Corp. LG Display SamsungSharp
Source : IHS Report ‘Display Optical film market tracker’ IHS Report ‘Large-area display market tracker’
0%
10%
20%
30%
40%
50%
60%
70%
80%
No
n T
AC
ad
op
tio
n r
ate
by p
an
el m
aker (
%)
AUO BOE CSOTInnolux Corp. LG Display SamsungSharp
© 2016 IHS Markit. All Rights Reserved.
Concentration of polarizer manufacturing lines in China
Investment plans of polarizer in China
Maker Location Film width (mm)
Capacity (Km2/month)
MP
Nitto Shenzhen 1,490 640 2018
Sumitomo Wusi 1,490 1,400 Q3’17
SDI Wusi 2,260 1,700 Q4’16
LGC Nanjing 2,260 2,700 Q1’16
CMMT Kunshan 1,490 720 Q2’17
Kunshan 2,260 1,200 1Q’18
Sunnypol Shenzhen 1,490 900 Q2’17
Hefei 2,260 1,000 Q1’18
SAPO Shenzhen 1,490 700 Q2’17
Source : IHS Report ‘Display Optical film market tracker’
6
44 54
82
145
200 207 207
-
50
100
150
200
250
2014 2015 2016 2017 2018 2019 2020
Po
lariz
er c
ap
acit
y b
y r
eg
ion
(M
il.s
qm
)
Taiwan Korea Japan China
© 2016 IHS Markit. All Rights Reserved.
Imbalanced Supply/Demand of polarizer-by region
2%
9% 11%
13%
19%
29%
12%
3%
12%
21%
14% 12%
0%
5%
10%
15%
20%
25%
30%
35%
-
5
10
15
20
25
30
35
40
45
50
S/
D i
n K
ore
a (
Mil.s
qm
)
Demand Supply Glut (S-D)/D
7
-53% -52% -56%
-60%
-54%
-46% -47%
-42% -38%
-21% -23%
-20%
-70%
-60%
-50%
-40%
-30%
-20%
-10%
0%
-
5
10
15
20
25
30
35
40
45
S/
D i
n C
hin
a (
Mil.s
qm
)
Demand Supply Glut (S-D)/D
Source : IHS Report ‘Display Optical film market tracker’
3%
9%
15% 15% 16%
24%
39%
335% 376%
428%
449%
449%
436%
367%
-21% -23%
-26%
-35% -32%
-26% -24%
-49%
-55%
-47%
-25%
-14%
-26%
-35%
18% 17% 18%
18% 21%
18%
14%
-
100
200
300
400
500
600
700
-60%
-40%
-20%
0%
20%
40%
60%
Wo
rld
wid
e s
up
ply
/d
em
an
d (
Mil.s
qm
)
Demand Supply Korea JapnaTiawan China Worldwide
2014 2015 2016 2017 2018 2019 2020
330%
~ ~
© 2016 IHS Markit. All Rights Reserved.
Imbalanced Supply/Demand of polarizer-by UV lines
8
8% 8%
2%
8% 7%
10%
2%
15% 16%
27%
16%
11%
17% 19%
18%
10%
14% 15%
6%
2%
7% 10%
0% 0%
12%
21% 19%
16%
21%
31%
15%
9%
14%
25%
18% 16%
21%
26%
20% 18%
21%
24%
16%
12%
16%
20%
10% 10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
-
10
20
30
40
50
UV
pro
cess s
up
ply
/d
em
an
d
(M
il.s
qm
)
UV Demand UV Supply UV Glut (S-D)/D Overall Glut
22% 22%
25%
31%
32% 32% 32%
34% 36%
15%
20%
25%
30%
35%
40%
45%
50%
-
100
200
300
400
500
600
700
800
2014 2015 2016 2017 2018 2019 2020
UV
cap
acit
y (
Mil.s
qm
)
UV capacity Overall capacityUV share UV share%
42%
29%
39%
49%
75%
0%
10%
20%
30%
40%
50%
60%
70%
80%
UV
cap
acit
y s
hare
by m
aker
Nitto Denko Sumitomo LG Chem. SDI BQM
0%
Nitto Denko
35%
Sumitomo
26%
LG Chem.
30%
SDI 9%
Source : IHS Report ‘Display Optical film market tracker’
© 2016 IHS Markit. All Rights Reserved.
Display Driver IC
Cost reduction - TRD, DRD, GOA
High resolution – Heat problem from DDIC
Changes in bonding technology
System on Film
9
© 2016 IHS Markit. All Rights Reserved.
Driver IC market forecast
• DRD and TRD will have a negative impact on the driver IC demand forecast, even though 4K products will grow
• Gate driver IC is expected to fall due to the increase in share of GOA.
• Almost small/medium panels use a single chip for driving.
10
Source : IHS Report ‘Display Driver IC market tracker’
5.3 5.3
4.6 4.3 4.2
4.0 4.0 3.8 3.8
51% 46% 45%
49% 52%
55% 55% 58% 59%
0%
20%
40%
60%
80%
100%
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2014 2015 2016 2017 2018 2019 2020 2021 2022
Driv
er I
C r
even
ue (
Bil.U
SD
)
Total Small/medium Large
5.2 5.5 5.1 4.8 4.9 4.9 4.9 5.0 4.9
1.4 1.3 1.1
0.9 0.6 0.2 0.1 0.0 0.1
-
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
201420152016201720182019202020212022
Driv
er I
C d
em
an
d (
Bil.U
nit
s)
Source IC Gate IC
© 2016 IHS Markit. All Rights Reserved.
GOA double rate/tri rate driving structure
• DRD: One s-channel accepts two signal of g-channel. (S-ICs 1/2)
• TRD: One s-channel gets to control three sub pixels at the same time. (S-ICs 1/3)
• GOA is necessary for DRD or TRD due to DRD/TRD asks large number of Gate ICs.
11
DRD Structure Conventional type, GOA
Gate IC on panel
TRD Structure
Source : IHS Report ‘Display Driver IC market tracker’
© 2016 IHS Markit. All Rights Reserved.
Cost reduction of DDIC
• DRD + GOA and TRD + GOA are good ways to reduce costs. Panel makers are aggressively applying DRD + GOA and TRD + GOA for 2016 TV models.
• Chinese VA panel makers have an interest on TRD, so they are focusing on Samsung’s TRD products.
12
Cost reduction of DDIC
Resolution Source pin Conventional GOA GOA+DRD GOA_TRD
HD 1366 x 768 720 6 + 2 = 8 6 + 0 = 6 4 + 0 = 4 2 + 0 = 2
1440 3 + 2 = 5 3 + 0 = 3 2 + 0 = 2 1 + 0 = 1
FHD 1920 x 1080 960 6 + 2 = 8 6 + 0 = 6 4 + 0 = 4 2 + 0 = 2
4K 3840 X 2160 960 12 + 4 = 16 12 + 0 = 12 8 + 0 = 8 4 + 0 = 4
8K 7680 X 4320 960 24 + 8 = 32 24 + 0 = 24 16 + 0 = 16 8 + 0 = 8
The driver IC interfaces are based on faster standards such as USI-T and EPI.
Source: IHS © 2016 IHS
Source : IHS Report ‘Display Driver IC market tracker’
© 2016 IHS Markit. All Rights Reserved.
4K Driver IC trends
8%
14%
24%
35%
41% 44%
47% 49%
52% 54%
1% 2% 2% 5% 6% 7% 8% 9% 10%
11%
1% 2% 2% 3% 3% 4% 4%
0%
10%
20%
30%
40%
50%
60%
Rati
o o
f h
igh
reso
luti
on
pan
el (o
ver 4
K)
LCD TV Desktop MonitorMobile PC Mobile phone
13
• Demand for 4K panels will increase across many applications. Demand for driver ICs will increase accordingly.
• 4K TV demand is growing rapidly and will become a major panel application in 2017.
• Panel makers want to reduce the number of driver ICs necessary for a 4K panel. And it can cause the heat problem from driver IC. Solving the heat problem may be critical success factors.
Source : IHS Report ‘Display long-term demand forecast tracker’
© 2016 IHS Markit. All Rights Reserved.
Driver IC for LTPS Notebook PC
14
• Driver IC for LTPS Notebook PC is as same as Smartphone Driver IC. Usually LTPS Driver IC one source channel supports RGB 3 colors. Some makers are trying 6 split driving for LTPS Driver IC.
• a-Si 4K NotePC panel needs 960channels 12 source Driver IC. 6 split driving of LTPS requires only 2 chips. (12*0.8 = 9.6$ vs. 2*1.8 = 3.6$)
a-Si Structure Normal LTPS Structure LTPS 6 Split Structure
Source : IHS Report ‘Display Driver IC market tracker’
© 2016 IHS Markit. All Rights Reserved.
Issues concerning heat problem from DDIC
• CPU Timing controller Driver IC
15
Proposed solution
Part Solution
Driver IC package Special resin • Special resin to absorb the heat is applied to the
part of Driver IC after mounting DDIC on COF
COF
Structural modification • To raise the thickness of Cu layer of COF can give DDIC package some space to emit the heat from Driver IC.
• Adoption of long COF can help to emit the heat from Driver IC through it’s long body.
Ultra low temperature COF • Add layers like Al and Cu which has the heat sink function onto COF
The heat sink film
• Very simple and effective, but expensive solution, some very large and expensive products for special usage like PID are adopting graphite sheet as role of the heat sink
Source: IHS © 2016IHS
© 2016 IHS Markit. All Rights Reserved.
Touch embedded driver IC and TDDI
2 13
50
131
225
346
468
595
0% 1%
2%
5%
8%
12%
16%
20%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
0
100
200
300
400
500
600
700
2015 2016 2017 2018 2019 2020 2021 2022
TD
DI d
em
an
d (
Mil
.Un
its)
TDDI Demand (Q2'16) TDDI Demand (Q3'16)
TDDI Ratio
16
Source : IHS Report ‘Display Driver IC market tracker’
• Synaptics, FocalTech, and Novatek are TDDI chip vendors.
• Synaptics was the only supplier until Q2’16, “One package two chips” has been generally used.
• As of Q3’16, Single chip solution was introduced, and panel makers started to apply it aggressively.
• Accordingly, IHS has increased TDDI forecast as compared to Q2’16.
© 2016 IHS Markit. All Rights Reserved.
Changes in bonding solution - Mobile phone
17
DIC
Conventional bezel
DIC COF
Slim bezel
DIC
Like bezel-less
Bonding technology of panel and DDIC
COG COF /COP
Merit • Able to connect DDIC to the panel glass without extra linking components
• Super slim light
• Chips and modules can be miniaturized • Able to folded and bended by the film’s
flexibility
Demerit
Requires sufficient space to place DDIC • Increase in cost due to extra film
• Limitation on resolution
Source: IHS © 2016IHS
[ Side view and bezel type by bonding technology ]
© 2016 IHS Markit. All Rights Reserved.
18
DDIC
PCB
Color filter TFT
Conventional bonding type
Changes in bonding solution - TV
d
© 2016 IHS Markit. All Rights Reserved.
Flexible OLED components trend
Polarizer
Touch sensor
19
© 2016 IHS Markit. All Rights Reserved.
Three types of On-cell for flexible touch
20
Flexible OLED Flexible OLED
Touch layer
Cover lens Cover lens Cover lens Cover lens
Circular polarizing film Circular polarizing film Circular polarizing film
Polarizer
Flexible OLED
Touch layer
On-cell for flexible touch Y-OCTA Integration with barrier
Polarizer Polarizer Polarizer
Flexible OLED
Integration with Polarizer
• Current development trends are based on the on-cell for flexible type, but they can be further categorized into three types by manufacturing process
© 2016 IHS Markit. All Rights Reserved.
Process comparison between “Y-OCTA” and “Integration with barrier film”
21
Y-OCTA
Overcoat Metal sputter for touch sensor Low temperature sensor patterning
Integration with barrier film, Transfer method
Carrier film
Carrier film
Metal sputter for touch sensor
Carrier film
Sensor patterning Transfer sensor pattern to barrier film
Flexible OLED Flexible OLED Flexible OLED Flexible OLED
Flexible OLED
Flexible OLED
Lamination barrier film on to TFE layer
Flexible OLED
Integration with barrier film, TCTF solution
ITO sputter on barrier film
Flexible OLED
ITO patterning Transfer AgNW layer AgNW patterning
AgNW patterning
Hitach TCTF** film
© 2016 IHS Markit. All Rights Reserved.
For ideal flexible OLED solution
22
Cover lens
Flexible OLED
On-cell touch’s stack up
OCA
TAC film PVA film TAC film Circular polarizing film
Polarizer
Coating polarizer Pol-less
Cover lens
Flexible OLED
OCA
Total # of film substrates: 0~1 substrate
Cover lens
Flexible OLED
OCA
TAC film
Total # of film substrates: 1~2 substrates
Coated pattern of PVA+ Circular polarizing film
Integration with Cover lens
Cover lens
Flexible OLED
OCA Coated polarizing layer
Total # of film substrates: 0~1 substrate
Antireflection
• Reducing the number of substrates used in OLED module is one of the most important factor for flexible display
CP