Large-Sized TFT-LCD Industry Report, 2006

Publication Date	April 2006
Publisher	Research in China
Product Type	Report
Pages	200
ISBN Number	not applicable
Product Code	RIC00009

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Summary

The labor cost only accounts for 6% of the total cost, while the cost of raw materials accounts for 70%. To reduce the cost of 17-Inch TFT-LCD panel production, the key is to reduce the cost of raw materials. This is the reason why TFT-LCD panel manufacturers must have perfect the supply chain.

The raw materials cost of 32-inch LCD-TV accounts even higher of 79% of the total cost. TFT-LCD industry is an upstream-dominant industry. On the one hand, only a few manufacturers exist in the upstream market, less than 10 manufacturers in each field of colour filter, glass substrate, driver IC, backlight unit, polarized panel and liquid crystal. Moreover, Top 5 in each filed are having about 70% to 100% market shares. On the other hand, the photoresist for colour filter, CCFL lamp for BLU and TAC for polarized panel, are monopolized by less than five manufacturers. Therefore, this report mainly focuses on the upstream domain.

Although the revenues of AUO and CMO were far behind of Samsung and LG Philips, CMO and AUO's gross margin was 7 and 6 times more than that of LG Philips respectively. Nevertheless, almost all secondary-line manufacturers suffered a loss.

The high gross profit was mainly resulted from the good layout on raw materials, but not relying on low labor cost. Except for glass, AUO and CMO can produce all other upstream raw materials. Considering the cost of raw materials accounting for more than 70% of the total cost of LCD panel, manufacturers in Taiwan naturally make more profits than Samsung and LG Philips. Take AUO as an example, the Wellypower, affiliated with AUO, can provide CCFL lamps; the Daxon which was invested by AUO, can produce polarized panel. Moreover, AUO can self-provide colour filters, the Corning, locating in the same industrial park with AUO, can provide glass substrate, the Novatek, also affiliated with AUO, is the largest TFT-LCD Driver IC manufacturer in the world.

Compared to AUO and CMO, secondary manufacturers suffer great loss. BOE has a huge deficit of RMB 570 million, and its revenue is the least. SVA Group also suffers a lot. BOE takes 17-inch TFT-LCD panel as its knock out product, while SVA NEC regards 15-inch TFT-LCD panel as its leading product. Nevertheless, the market development of 15-inch TFT-LCD panel is quite limited, only having thin profit margin.

Except for glass substrate, Taiwan manufacturers can produce other raw materials by themselves, whose quality is better than original auxiliary components made by Korean manufacturers. Manufacturers can hold purchase right under the condition of mastering the core technology of TFT-LCD panel, as technical engineers finally decide the purchase of raw materials. As long as manufacturers reserve purchase right, they are able to compete in the upstream market. The technology of BOE comes from Hydis, while SVA's technology is from NEC. It is well-known that NEC has already completely withdrawn from LCD market. Therefore BOE's technology is stronger than that of SVA. The most important process for producing TFT-LCD panel is Array, similar with the process of wafer fabrication. What differs is that wafer is put on silicon chip while TFT-LCD on glass substrate. Taiwan manufacturers have rich experience in producing wafer as well as manufacturers in Korea and Japan. But mainland manufacturers pretty lack of experience in manufacturing wafer.

Additionally, establishing industry chain is not simply attracting manufacturers to move into its own industrial park. What the most important is that manufacturers must master its own technology and productivity, and then have power to occupy upstream market. Like AUO in Taiwan, it is the parent company of Daxon and Cando, big shareholder of Wellypower as well as an affiliated company of Novatek. Whereas, even if BOE or SVA NEC attracts overseas providers to move into China, these overseas providers will still transfer their profits to overseas markets. Since price given to BOE or SVA NEC won't be lower at all, the possibility of loss exists.

Manufacturers couldn't make huge profits unless they completely master technology and production capability, but it needs a long course and huge financial support.

Content

1. Brief Introduction to Large-Sized TFT-LCD Industry Chain
- 1.1 Analysis of Large-Sized TFT-LCD Panel Cost Structure
2. Upstream Industry Chain of Large-Sized TFT-LCD
- 2.1 Glass Substrate
  - 2.1.1 Overview of Glass Substrate
  - 2.1.2 Glass Substrate Market
- 2.2 Glass Substrate Manufacturers
  - 2.2.1 Coring Incorporated
  - 2.2.2 Nippon Sheet Glass Co. Ltd (NSG)
  - 2.2.3 Nippon Electric Glass Co., Ltd (NEG)
  - 2.2.4 Asahi Glass Co., Ltd (AGC)
- 2.3 Color Filter
  - 2.3.1 Overview of Color Filter
  - 2.3.2 Development Trend of Color Filter
  - 2.3.3 Color Filter Market
- 2.4 Color Filter Manufacturers
  - 2.4.1 Cando Corporation
  - 2.4.2 Dai Nippon Printing Co., Ltd (DNP)
  - 2.4.3 Sintek Photronic Corp.
  - 2.4.4 Toppan Printing Co., Ltd
  - 2.4.5 Allied Material Technology Corp.
  - 2.4.6 Sumitomo Chemical Co., td
- 2.5 Polarized Panel
  - 2.5.1 Overview of Polarized Panel
  - 2.5.2 Polarized Panel Market
- 2.6 Polarized Panel Manufacturers
  - 2.6.1 Nitto Denko Corporation
  - 2.6.2 Optimax Technology Corporation
  - 2.6.3 LG Chem, Ltd.
  - 2.6.4 Sann Lii Co., Ltd
  - 2.6.5 Sumitomo Chemical Co., Ltd
  - 2.6.6 Daxon Technology Inc.
  - 2.6.7 Ace Digitech
  - 2.6.8 Jinwei
- 2.7 Backlight Unit (BLU)
  - 2.7.1 Overview of Backlight Unit
  - 2.7.2 CCFL Market Overview
  - 2.7.3 BLU Market Overview
- 2.8 CCFL Manufacturers
  - 2.8.1 Harison-toshiba
  - 2.8.2 Sanken
  - 2.8.4 Panasonic
  - 2.8.5 NEC
  - 2.8.6 Stanley
  - 2.8.7 Kumho
  - 2.8.8 Heesung
  - 2.8.9 Wooree ETI
  - 2.8.10 Wellypower
- 2.9 Backlight Unit Manufacturers
  - 2.9.1 Coretronic
  - 2.9.2 Forhouse
  - 2.9.3 Radiant
  - 2.9.4 Kenmos
  - 2.9.5 Forward
  - 2.9.6 K-Bridge
  - 2.9.7 Taesan LCD
  - 2.9.8 Wooyoung
  - 2.9.9 DS-LCD
  - 2.9.10 Hansol LCD
  - 2.9.11 Chilin
  - 2.9.12 Heesung Electronics
  - 2.9.13 Yuka
  - 2.9.14 L & F
- 2.10 Optical Film
- 2.10.1 Overview of Optical Film
- 2.10.2 Optical Film Manufacturers: 3M
- 2.10.3 Efun
- 2.10.4 Keiwa
- 2.10.5 Tsujiden
- 2.10.6 SKC
- 2.11 Driver IC
- 2.11.1 Principle
- 2.11.2 Overview of Driver IC
- 2.11.3 Features of Large-Sized TFT-LCD Driver IC
- 2.11.4 Large-Sized TFT-LCD Driver IC Package
- 2.11.5 Cost Structure
- 2.11.6 Foundry Services
- 2.11.7 Driver IC Market
- 2.12 Driver IC Manufacturers
- 2.12.1 MagnaChip
- 2.12.2 NEC
- 2.12.3 Samsung
- 2.12.4 DenMos
- 2.12.5 Novatek
- 2.12.6 Cheertek
- 2.12.7 Himax
3. Large-Sized TFT-LCD Panel Manufacturers
- 3.1 Fabrication Process of Large-Sized TFT-LCD Panel
- 3.2 AUO
  - 3.2.1 QDI
- 3.3 CMO
- 3.4 CPT
- 3.5 HannStar
- 3.6 InnoLux
- 3.7 BOE
- 3.8 IVO
- 3.9 SVA-NEC

inch TFT-LCD Panel Cost Structure (6G Line)
inch TFT-LCD Panel Cost Structure (5G Line)
BOM Structure of 17-inch TFT-LCD Panel (5G Line)
BOM Structure of 32-inch TFT-LCD Panel (6G Line)
Sketch of TFT-LCD Upstream Industry Chain
Price of Glass Substrate by size, Q4 2005-Q1 2006 (unit: yen)
Global Demand & Supply of TFT-LCD Glass Substrate, Q1 2005-Q4 2007
Market Shares and Forecast of Global Top 5 TFT-LCD Glass Substrate Manufacturers
Quality Characteristic of Corning EAGLE2000 Products
Corning Operating Performance, 2003-2005
Corning Operating Performance of Display Division, 2003-2005
Change of Corning Investment on R & D, 2001-2005
Corning Operating Revenue Distribution by Regions, 2003-2005
NSG Operating Performance, 2000-2004
NSG Information & Electronics Operating Performance, 2000-2004
NEG Operating Performance, 2001-2005
NEG Operating Performance of Plane & Photoelectrical Division, 2001-2004
AGC Global Business Distribution
Global Operating Networks of AGC Display Glass Substrate
Global Market Performance of AGC Display Glass Substrate
Current Production Expansion Plan of AGC TFT Glass Substrate, 2005-2007
Production Expansion Plan of AGC TFT Glass Substrate after Demand increases
Forecast of AGC Large-Sized Display Glass Substrate Output, 2004-2007
Forecast of AGC TFT Plane Aggregate Demand, 2004-2007
AGC TFT Glass Substrate Shipment, Q3 2004-Q4 2005
AGC Operating Performance, 1998-2006
Global Market Shares of AGC Flat Glass, Auto Glass and CRT Glass in 2005
Global Market Shares of AGC TFT Glass Substrate, PDP Glass Substrate & ETFE, 2005
AGC Operating Revenue Distribution by Division, 2004-2006
AGC Operating Revenue Distribution by Regions, 2004-2006
AGC Operating Revenue Distribution by Regions and Divisions in 2005
Change of ACG Investment on R & D, 2004-2006
Structure of Color Filter
Microstructure of Ink-Jet Color Filter
Contrast between Ink-Jet and Printing Color Filters
Ink-Jet Color Filter Chamber by Industrial Technology Research Institute of Taiwan
Forecast and Proportion of Purchased and Self-made Color Filters, Q3 2005-Q3 2008
Cando Operating Performance, 2002-2005
Market Shares of Global Color Filter Manufacturers in 2004
DNP Operating Performance by Divisions, 2003-2006
DNP Operating Revenue by Divisions in 2006
DNP Operating Revenue Distribution by Divisions, 2005-2006
Sintek Operating Performance, 2002-Q1 2006
Sintek Clients Distribution, 2004-Q1 2006
TOPPAN Operating Performance, 2002-2006
AMTC Operating Performance, 2002-2005
Market Shares of Color Filter Markers in Taiwan in 2004
Structure of Common Polarized Panel
Sketch of N-TAC Retardation Film Structure
Sketch of X-PLATE Retardation Film Structure
Cost Structure of Polarized Panel
Raw Materials Cost Structure of Polarized Panel
Market Scale and Forecast of Mainland Large-Sized TFT-LCD Polarized Panel
Sketch of BLU Structure
Contrast of CCFL, EEFL, LED, OLED and FEL
Market Shares of Global CCFL/EEFL Manufacturers, Q1 2006
Market Shares of Global CCFL/EEFL Manufacturers for Laptops and Computers, Q4 2005
Market Shares of Global CCFL/EEFL Manufacturers for LCD-TV, Q4 2005
Market Shares of Global Manufacturers to Produce CCFL/EEFL for Computer Display, Q4 2005
Forecast of CCFL Supply and Demand, Q3 2006-Q4 2007
Market Shares of Global BLU Manufacturers by Shipment in 2005
Market Shares of LCD-TV BLU Manufacturers by Shipment in 2005
Sanken Operating Performance, 2004-2006
Sanken Products Distribution, 2004-2006
Sanken CCFL Capacity Planning, 2006-2009
Forecast of Global TAC Supply and Demand, Q1 2005- Q4 2006
Equivalent Circuit of TFT-LCD Panel
Internal Frame of Large-Sized TFT-LCD Driver IC
Route Map of Driver IC Package's Development
Forecast and Revenue of Large-Sized TFT-LCD Driver IC (by Shipment), 2004-2009
Market Shares of Global Large-Sized TFT-LCD Driver IC Manufacturers (by shipment) in2005
MagnaChip Operating Performance, 2003-Q1 2006
Change of Magnachip Investment on R & D, 2003-Q1 2006
MagnaChip Major Products Distribution, 2003-2005
MagnaChip Regional Operating Revenue Distribution, 2003-2005
NCE Operating Performance, 2005-2007
NCE Operating Performance by Division, 2005-2006
Forecast of NCE Operating Performance by Division, 2006-2007
NEC Operating Performance, 2005-2007
NEC Operating Performance, Q1 2004-Q4 2006
NEC Products Distribution, Q1 2006-Q4 2006
NEC Products Distribution, 2005-2006
NEC Semiconductor Market Distribution, 2005-2006
Samsung Display Driver IC Production Planning
Market Application of Samsung LCD Driver IC
Novatek Operating Performance, 2002-2006
Novatek Products Distribution, Q1 2005-Q4 2006
Market Share of Global Large-Sized Driver IC
Global TFT-LCD Large-Sized Panel Driver IC Demand, 2003-2007
Global LCD-TV Demand, 2003-2006
Global NB Demand, 2003-2006
Global LCD Display Demand, 2003-2006
Cheertek Operating Performance, 2002-Q1 2006
Himax Operating Performance, 2003-Q1 2006
Change of Himax Investment on R & D, 2003-Q1 2006
Hixmax Operating Revenue Proportion by Product, 2003-2005
Hixmax Clients Distribution, 2003-2005
Sketch of Large-Sized TFT-LCD Structure
Flow Sketch of Array
Flow Sketch of Cell
Flow Sketch of Module
Monthly Capacity Planning of AUO Factories
AUO Operating Performance, 2003-Q1 2006
AUO Large-Sized TFT-LCD Panel Shipment Proportion by Application, Q1 2003-Q4 2005
AUO Operating Revue Proportion by Application, Q1 2003-Q4 2005
AUO Shipment and Average Sales Price of Large-Sized TFT-LCD Panel, Q1 2003-Q4 2005
AUO Shipment and Sales Price per unit area of Large-Sized TFT-LCD Panel, Q1 2003-Q4 2005
AUO Shipment Operating Revenue of Medium and Small-Sized TFT-LCD Panel, Q1 2003- Q4 2005
QDI Operating Performance, 2003-2005
Quarterly Capital Expenditure of Global Major Panel Manufacturers, 2004-2006
CMO Operating Performance, 2002-2005
CMO Shipment and Average Sales Price, Q1 2004-Q4 2005
CMO Operating Revenue Application Percentage by Product, Q1 2004- Q4 2005
Sales of CMO LCD Panel by Size, Q1 2004- Q4 2005
Capacity Plan of CPT Factories
Capital Expenditure Plan of CPT Factories
CPT Operating Performance, 2003-2005
CPT TFT-LCD Operating Revenue by Division, 2003-2005
CPT TFT-LCD Shipment and Average Sales Price, Q1 2003- Q4 200
CPT Large-Sized TFT-LCD Shipment by Application, Q3 2005- Q4 2005
CPT Large-Sized TFT-LCD Shipment by Size, Q3 2005- Q4 2005
Hannstar Operating Performance, 2003-2005
Hannstar Panels Shipment and Average Sales Prices, Q3 2004- Q4 2005
Hannstar Operating Revenue by Application, Q3 2004- Q4 2005
Hannstar Operating Revenue by Size, Q3 2004- Q4 2005
Physical Features of Corning E2000 Products
NSG Company Profile
Distribution of NSG Divisions
NSG Display Glass Substrate Products
NEG Company Profile
Profile of AGC
Contrast of the Four Color Filter Fabrication Methods
Shareholders of Cando
Cando Company Profile
DNP Company Profile
Toppan Company Profile
AMTC Company Profile
Color Filter Capacity of AMTC and Sintek
Sanken Company Profile
NEC CCFL Features
Driver IC Numbers by Resolution
Main global TFT-LCD Driver IC Package Manufacturers
Cost Structure of 384- Feet & 642 -Feet Driver IC
Relations between Large-Sized TFT-LCD Driver IC Manufacturers and Large-Sized TFT-LCD Panel Manufacturers
Global TFT-LCD Driver IC OEM wafer Manufacturers
MagnaChip Large-Sized 6Bit TFT Source Driver IC Products
MagnaChip Large-Sized 8Bit TFT Source Driver IC Products
MagnaChip Large-Sized TFT Gate Driver IC Products
MagnaChip Medium TFT Driver IC Products
NEC Company Profile
NEC Electronics Company Profile
NEC Electronics Digital Source Driver IC (CMOS I/F) Products
NEC Electronics Digital Source Driver IC (mini-LVDS I/F) Products
NEC Electronics Digital Source Driver IC (RSDS I/F) Products
NEC Electronics Analog Source Driver IC Products
NEC Electronics Gate Driver IC Products
Samsung LCD Driver IC Products
Samsung TFT Panel Driver IC Products
DenMOS TFT Source Driver Products
DenMOS TFT Gate Driver Products
Novatek Company Profile
Novatek Driver IC Products
Cheertek Multimedia IC Products
Cheertek TFT LCD Driver IC Products
Himax TFT-LCD Driver IC Products
AUO Company Profile
AUO Factory Profile
AUO Factory's Production Size and Sector Divided
AUO Products Distribution
Part AUO Large-Sized TFT-LCD Products
QDI Profile
QDI Panel Capacity Overview
QDI Electronic Products
CMO Capacity Plan
CMO monthly Sales Revenue & Shipment, Jan 2005-Mar 2006
CMO Products
CPT Company Profile
CPT Factory Profile
CPT Products
CPTF Monthly Revenue & Shipment, Jan 2005-Mar 2006
Hannstar Company Profile
Hannstar Products
Hannsta Core Technologies
Hannstar Operating Performance, Jan 2006-Mar 2006
BOE Operating Performance in 2005
BOE Operating Performance, Q1 2006