BEIJING, March 19 /Xinhua-PRNewswire/ -- CCID Consulting, China’s leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), recently released its 2007-2008 Annual Report on China’s Small/Medium LCD Panel Industry. This report shows that with the continuous rising demands from mobile phone, MP3, PMP, DC, DV, digital frame, mobile navigation system, onboard electrical system industries, global small and medium size LCD panel industry grows rapidly. Data reviews that the shipment of global small and medium size LCD panel industry reached 2.851 billion sets, up 17.7% over 2006; and revenue shipments reached $25.937 billion, up 17.3% over 2006.
Small and medium size LCD panel includes TN-LCD, STN-LCD, CSTN-LCD, TFT-LCD. TN/STNs are black and white display monitors for use in apparatus and instruments. CSTNs and TFTs are color display which are applied in mobile phone, portable digital products, digital frame and PDA.
Figure 1: The scale and growth of global small and medium size LCD panel shipment
http://www.ccidconsulting.com/upload/12811.GIF
Source: Jan. 2008, CCID Consulting
Figure 2: The scale and growth of global small and medium size LCD panel’s revenue shipments, 2007
http://www.ccidconsulting.com/upload/12812.GIF
Source: Jan. 2008, CCID Consulting
Small and Medium-sized LCD Panels Transform into Colorization and Modularization
Small and medium-sized LCD panels on cell phone screens are represented by CSTNs and TFTs techniques. In Japan, the most common technology for color screens is TFT-LCD, while South Korea mainly uses CSTN with a parameter of 65K. Markets beside Japan and Korea mainly uses CSTN that boasts a lower color parameter which benefit the promotion space of the products.
With the advance of 3C convergence and growing popularity of smart phones, new products now require higher color parameters and resolution of which CSTN cannot support due to its poor technique, hence its position in market is now threatened by the new introduction of TFT and OLED screens. However, CSTN does have its advantages in lower electricity consumption and unit price. New competitors force CSTN to transform its position from the recent medium and low price products into low price ones, which motivates whole of the small and medium-sized liquid crystal panels transform into colored and modeled ones.
In addition, with the further development of the market, the cost of production will slowdown and the modularization is becoming more obvious.
TFT-LCD Becomes Main Trend of Small and Medium-sized LCD Panels
According to its evolution path, LCD can be basically classified into TN-LCD, STN-LCD, CSTN-LCD and TFT-LCD. Compared with TN, TFT-LCD is much lighter and thinner with better resolution and clarity. The capability of medium and small-sized TFT-LCD products is increasingly improved; the technology on large-scaled manufacturing of TFT-LCD is mature; the high production rate and the degree of automation in production are reaching to a higher level.
With the development of network techniques and technology of manufacturing which is much “lighter, thinner, shorter and smaller”, the demands of mobile terminals will increase rapidly in the future. In the market of medium and small-sized display terminals, TFT-LCD products obviously play the role of CSTN-LCD products, and TFT-LCD will gradually take a dominant role.
OLED Technique Threatens LCD Technique
OLED is organic light-emitting diode which gives off light of its own, unlike LCD which depends on backlighting. OLED, with the same size of LCD and half of its thickness, can save 40% of the electricity and can also produce vivid image, applying to intelligence handset, game machines and pocket media player, etc.
Most manufacturers are beginning to focus on the D&R and quantity production of OLED. Manufacturers, such as Samsung Electronics, CMEL and Sony, are actively devoting themselves into the D&R and production of OLED. In the future, OLED perhaps will take place of LCD which is heavier and consume more electricity. OLED, at present, applies to pocket device that are smaller in volume, such as music player produced by Korea Samsung Electronics and Reigncom company, and the mobile phone produced by Kyocera company. Sony also plans to take the initiative in selling the small-sized television with OLED technique. OLED and another quite potential bi-stable technique, in the future, will definitely challenge the dominate trend of LCD.
Small and Medium-sized LCD Panel Industry Has Good Prospect
At present, the TN/STN-LCD industry in China has been matured to a point that China has already become the main production base of TN/STN-LCD panels, ranking first in the production volume of the whole world. However, the industry of TFT-LCD panels are developing comparably at a slower speed, mainly because it is industry with high-technique and high-capital and its core technology is grasped by Japanese and Korean manufacturers. In addition, business chain in China is not completely developed, and the key materials need to be invested, which hampered the further development of the industry. In the year of 2007, the production volume of the medium and small-sized liquid crystal panels is 925 million, up 31.4%.
Figure 3: The scale and growth rate of China’s small and medium size LCD panel’s shipment in 2007
http://www.ccidconsulting.com/upload/12813.GIF
Source: Jan. 2008, CCID Consulting
Figure 4: The scale and growth of the small and medium size LCD panel’s shipment in China mainland, 2007
http://www.ccidconsulting.com/upload/12814.GIF
Source: Jan. 2008, CCID Consulting
CCID Consulting forecasts that China’s TFT-LCD production capacity will grow rapidly in 2008. The major reasons are that manufacturers will rebuild a product line: Tianma Shenzhen will put 4.5-generation into production; Truly Semiconductor Ltd. will establish 2.5-generation in China mainland.
With the capacity of complete sets of installations in industry further strengthened, the production ability of TFT-LCD industry in China will further broadened; the influence on policies of greatly reducing the cost of production by technological upgrading will be greatly decreased; while the influence on the total cost from the transport cost of reaching the end of market will be gradually obvious. The above aspects will make contributions to the rapid development of TFT-LCD panels industry in China.
Figure 5: Forecast on the shipment scale of China’s small and medium size LCD panel, 2008-2012
http://www.ccidconsulting.com/upload/12815.GIF
Source: Jan. 2008, CCID Consulting
About CCID Consulting
CCID Consulting Co., Ltd. (hereinafter known as "CCID Consulting"), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is directly affiliated to the China Center for Information Industry Development (hereinafter known as "CCID Group"). Headquartered in Beijing, CCID Consulting has set up branch offices in Shanghai, Guangzhou, Shenzhen, and Harbin, with over 300 professional consultants and industry experts. The company’s business covers over 200 large and medium-sized cities in China. Apart from home market development, CCID Consulting establishes international cooperation links across the United States, the Asia-Pacific region and Europe with agents in the U.S., Japan, South Korea, Australia, Singapore, Italy and Russia, with the aim of going global.
Based on four major competitive areas: powerful data channels, industrial resources, intense knowledge and a deep understanding of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategic planning, IT applications, marketing strategies, human resources and information technology outsourcing. Customers range from industrial IT users, telecommunications companies, energy companies, finance companies, and automobile companies, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to be the number 1 consultant in strategy consulting, the number 1 advisor for enterprise management and the number 1 consultant for government decision-making.
For more information, please contact:
Cynthia Liu
Coordinating Manager
CCID Consulting Co., Ltd.
Tel: +86-10-8855-9080
Email: liuyan@ccidconsulting.com
