Taiwan small- to mid-size LCD
panels
DIGITIMES Research
FPD Report – 4Q 2012
Original Chinese: Jason Yang, DIGITIMES Research, January 2013
English edition: Nick Brown, DIGITIMES, February 2013
Introduction
Taiwan shipped 367.84 million small- to medium-size TFT LCD panels in the fourth
quarter of 2012, decreasing 2.5% sequentially and 0.1% from the same period one
year earlier.
Taiwan's small- to medium-size TFT LCD panel shipments are expected to decrease
11.1% sequentially but increase 5.8% on year to 327.08 million units in the first
quarter of 2013.
NOTE: Unless otherwise indicated, all figures and tables in this report refer to output
from Taiwan makers.
20%
Small- to medium-size TFT LCD panel
shipments, 4Q11-1Q13 (k units)
400,000
10%
350,000
300,000
0%
250,000
200,000
-10%
150,000
100,000
-20%
50,000
4Q11
1Q12
2Q12
3Q12
4Q12(e)
1Q13(f)
368,272
309,025
347,558
377,302
367,837
327,078
Q/Q
-4.0%
-16.1%
12.5%
8.6%
-2.5%
-11.1%
Y/Y
10.8%
-0.3%
5.2%
-1.7%
-0.1%
5.8%
Shipments
0
Small- to medium-size TFT LCD panel
shipments (1)
The fourth quarter is traditionally the slow season for small- to medium-size TFT LCD panels, and
the fourth quarter of 2012 was no exception, with Taiwan's panel makers seeing a 2.5% quarter-onquarter contraction in shipments to 368 million units. The weak global economy also contributed to
weak year-on-year growth, which actually saw a 0.1% contraction on shipment levels in the fourth
quarter of 2011, the second consecutive quarter with negative year-on-year growth rates.
Handset panel demand was significant in the fourth quarter of 2012 as major global handset
vendors launched a series of new models. Demand from the China white-box handset market also
remained largely unaffected by the seasonal slump, helping Taiwan-based panel makers to buck
the overall trend and achieve 0.5% quarter-on-quarter growth in the handset panel sector; the
handset sector's share of overall small- to medium-size panel shipments for Taiwan's panel makers
also increased by 2.4 points in the fourth quarter to 80.4%.
Shipments for other application sectors declined due to seasonal factors. Chunghwa Picture Tubes
(CPT) and E-Ink Holdings changed their production strategy and reduced the share of production
allocated to niche products, with shipments falling 23% on the previous quarter. The MP3 player
sector fell by 19.4%, while the digital camera sector shrank by 13.9%, largely due to the
replacement of such devices by smartphones; the onboard vehicle display sector also declined by
13.9% quarter on quarter.
Small- to medium-size TFT LCD panel
shipments (2)
Innolux (formerly Chi Mei Innolux, or CMI) benefitted greatly from large orders for handsets
placed by major handset vendors with Foxconn and Chi Mei Communication Systems (CMCS),
with which it is affiliated; as a result Innolux's small- to medium-size panel shipments overtook
CPT in the fourth quarter of 2012, making the firm the second largest Taiwan-based manufacturer
by shipments after HannStar Display.
The first quarter is the traditional slow season for small- to medium-size TFT LCD panels, and the
first quarter of 2013 will see Taiwan's small- to medium-size TFT LCD panel shipments fall 11.1%
quarter-on-quarter to a projected 327 million units. In terms of year-on-year growth, the continuing
close relationships between Taiwan panel makers and brands such as Nokia and Sony will boost
demand for handset display panel products higher than the level seen in the same period of 2012;
consequently, overall small- to medium-size LCD panel shipments will grow 5.8% on the figures
for the first quarter of 2012.
Small- to medium-size TFT LCD panel
shipments (3)
The effect of the slow season will cause a contraction in Taiwan-based manufacturers' shipments
for all application sectors for small- to medium-size panels during the first quarter of 2013. The
seasonal effect will be less pronounced in niche products, which are included in the "Other" sector
in this report; the "Other" sector will see shipments contract by just 1.0%, the lowest of any sector;
the low-end medium-size panel sectors will see the most severe decline with shipments for portable
DVD players falling 38.3% and shipments for digital photo frames falling 29.4% in the first quarter,
largely thanks to inventory adjustments and market share erosion from white-box tablets.
All Taiwan's major panel makers will see shipments contract due to the effects of the slow season.
AU Optronics (AUO) will be least affected as its shipments for major international tablet makers
increase, while Wintek will be hard hit as it continues to increase its touch panel shipment share, as
will E-Ink, as its major clients' tablet product ranges enter a period of transition. HannStar and
Innolux will remain the top two Taiwan-based manufacturers of small- to medium-size TFT LCD
panels by shipments.
Shipments by application, 4Q11-1Q13 (k
units)
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
4Q11
1Q12
2Q12
3Q12
4Q12(e)
1Q13(f)
Handset
DSC
Car-use display
Portable DVD player
Digital photo frame
Tablet
PND
MP3 player
Other
Shipments by application, 4Q11-1Q13 (k
units)
Handset
DSC
Car-use
display
Portable DVD
player
Digital photo
frame
Tablet
PND
MP3 player
Other
1Q13(f)
265,018
21,479
7,173
3,248
3,817
6,593
5,702
3,770
10,279
4Q12(e)
295,620
23,783
8,215
4,599
6,181
7,554
7,130
4,366
10,388
3Q12
294,198
27,625
9,542
4,738
6,238
8,344
7,699
5,420
13,497
2Q12
274,719
24,702
8,092
4,235
4,469
5,471
6,816
5,407
13,647
1Q12
243,366
22,764
6,779
3,406
3,806
4,419
6,698
5,256
12,531
4Q11
294,545
25,467
8,327
4,671
5,203
3,028
7,927
5,975
13,129
Shipment share by application, 4Q11-1Q13
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
4Q11
1Q12
2Q12
3Q12
4Q12(e)
1Q13(f)
Handset
DSC
Car-use display
Portable DVD player
Digital photo frame
Tablet
MP3 player
PND
Other
Shipment share by application, 4Q11-1Q13
Handset
DSC
Car-use
display
Portable DVD Digital photo
Tablet
player
frame
1Q13(f)
81.0%
6.6%
2.2%
1.0%
1.2%
4Q12(e)
80.4%
6.5%
2.2%
1.3%
3Q12
78.0%
7.3%
2.5%
2Q12
79.0%
7.1%
1Q12
78.8%
4Q11
80.0%
MP3 player
PND
Other
2.0%
1.2%
1.7%
3.1%
1.7%
2.1%
1.2%
1.9%
2.8%
1.3%
1.7%
2.2%
1.4%
2.0%
3.6%
2.3%
1.2%
1.3%
1.6%
1.6%
2.0%
3.9%
7.4%
2.2%
1.1%
1.2%
1.4%
1.7%
2.2%
4.1%
6.9%
2.3%
1.3%
1.4%
0.8%
1.6%
2.2%
3.6%
Applications
Taiwan-based manufacturers' small- to medium-size TFT LCD panel shipments for all
application sectors fell in the fourth quarter of 2012, except for the handset sector,
which saw 0.5% growth.
The digital camera application sector was badly hit with a 0.8 point drop in shipment
share during the fourth quarter, as smartphones replaced digital cameras and
compounded the effects of the seasonal slump.
The "Other" segment will contract by just 1.0%, while other application sectors will
all see shipments contract by 9% or more in the first quarter of 2013.
Overall shipments by technology, 4Q111Q13 (k units)
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
4Q11
1Q12
2Q12
3Q12
4Q12(e)
1Q13(f)
LTPS
60,619
48,153
48,863
52,754
52,396
56,515
a-Si
307,653
260,872
298,694
324,547
315,441
270,563
Overall shipment share by technology, 4Q111Q13
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
4Q11
1Q12
2Q12
3Q12
4Q12(e)
1Q13(f)
a-Si
83.5%
84.4%
85.9%
86.0%
85.8%
82.7%
LTPS
16.5%
15.6%
14.1%
14.0%
14.2%
17.3%
Technology: LTPS and a-Si
Taiwan-based manufacturers' LTPS TFT LCD handset panel shipments grew 1.3% in
the fourth quarter due to global smartphone demand.
LTPS TFT LCD's share of Taiwan-based manufacturers' small- to medium-size panel
shipments rose 0.2 points to 14.2% in the fourth quarter of 2012.
As international handset makers continue to focus on smartphones, demand for the
relevant panel products in the first quarter of 2013 will remain significant, despite the
effects of the slow season; demand for high-performance LTPS TFT LCD panels will
see shipments rise quarter on quarter..
Small- to medium-size LTPS TFT LCD panels' share of overall shipments for Taiwanbased panel makers will rise 3.1 points in the first quarter of 2013 to 17.3%.
Handset panel shipments by technology,
4Q11-1Q13 (k units)
300,000
250,000
200,000
150,000
100,000
50,000
0
4Q11
1Q12
2Q12
3Q12
4Q12(e)
1Q13(f)
LTPS
53,260
41,841
42,505
45,030
45,593
50,421
a-Si
241,286
201,525
232,213
249,169
250,027
214,598
Handset panel shipment share by technology,
4Q11-1Q13
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
4Q11
1Q12
2Q12
3Q12
4Q12(e)
1Q13(f)
a-Si
81.9%
82.8%
84.5%
84.7%
84.6%
81.0%
LTPS
18.1%
17.2%
15.5%
15.3%
15.4%
19.0%
DSC panel shipments by technology, 4Q111Q13 (k units)
25,000
20,000
15,000
10,000
5,000
0
4Q11
1Q12
2Q12
3Q12
4Q12(e)
1Q13(f)
LTPS
6,288
5,382
5,836
7,116
6,296
5,670
a-Si
19,179
17,382
18,865
20,509
17,487
15,809
DSC panel shipment share by technology,
4Q11-1Q13
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
4Q11
1Q12
2Q12
3Q12
4Q12(e)
1Q13(f)
a-Si
75.3%
76.4%
76.4%
74.2%
73.5%
73.6%
LTPS
24.7%
23.6%
23.6%
25.8%
26.5%
26.4%
Top-3 makers' shipments, 4Q11-1Q13 (k
units)
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
4Q11
1Q12
2Q12
3Q12
4Q12(e)
1Q13(f)
Top 1
101,128
96,375
118,542
117,902
114,129
96,788
Top 2
92,420
72,286
78,137
89,467
92,679
83,411
Top 3
89,242
67,651
75,178
86,455
90,362
79,970
Top-3 makers' shipment share, 4Q11-1Q13
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
4Q11
1Q12
2Q12
3Q12
4Q12(e)
1Q13(f)
Top 3
24.2%
21.9%
21.6%
22.9%
24.6%
24.4%
Top 2
25.1%
23.4%
22.5%
23.7%
25.2%
25.5%
Top 1
27.5%
31.2%
34.1%
31.2%
31.0%
29.6%
Top-3 makers, 4Q11-1Q13
4Q11
1Q12
2Q12
3Q12
4Q12(e)
1Q13(f)
1
HannStar
HannStar
HannStar
HannStar
HannStar
HannStar
2
CPT
Innolux
CPT
CPT
Innolux
Innolux
3
Innolux
CPT
Innolux
Innolux
CPT
CPT
Makers
HannStar's handset panel shipments were mainly targeted at the less seasonal China white-box
handset market in fourth-quarter 2012, helping the firm to remain the number one Taiwan-based
small- to medium-size panel maker by shipments.
Innolux saw shipments rise 7.2% against the prevailing market trend to overtake CPT as the second
largest Taiwan-based small- to medium-size panel maker, largely due to demand from new
handsets from major international brands, as well as normal levels of demand for China-based
white-box handsets.
The top three Taiwan-based small- to medium-size panel makers – HannStar, Innolux and CPT –
will all see shipments contract by more than 10% in first-quarter 2013 compared to the previous
quarter. Smartphone panel orders will help Innolux to offset more of the impact of the seasonal
slump than HannStar or CPT.
While AUO benefits from tablet panel demand from major international brands, Giantplus
Technology will benefit from restocking following a large drop in shipments in the fourth quarter
of 2012. This will reduce the concentration of Taiwan small- to medium-size panel shipments in
the first quarter of 2013, although HannStar and Innolux will remain the top two Taiwan-based
small- to medium-size panel makers.
80%
Taiwan's small- to medium-size TFT LCD
shipments and global share, 2010-2015 (k
units)
1,600,000
60%
1,400,000
1,200,000
40%
1,000,000
800,000
20%
600,000
400,000
0%
200,000
Shipments
2010
2011
2012(e)
2013(f)
2014(f)
2015(f)
1,187,955 1,392,301 1,401,721 1,422,000 1,433,000 1,438,000
Y/Y growth
54.6%
17.2%
0.7%
1.4%
0.8%
0.3%
Global share
54.3%
57.2%
55.9%
54.5%
53.1%
51.4%
0
Outlook till 2015
Looking ahead to 2013-2015, China-based BOE and Tianma, which both started to emulate the
success of CPT and HannStar from 2011 onwards, will erode Taiwan-based manufacturers' market
share in the low-end medium-sized TFT LCD panel sector. China-based brands' handsets will
continue to erode demand for white-box handsets, which will further threaten Taiwan-based
manufacturers' position in China's low-end small- to medium-size TFT LCD panel market.
In the high-end handset, digital camera and tablet application sectors, Japan Display is stepping up
production of high-end handset panels with 400ppi or higher pixel density, while Samsung Mobile
Display continues to increase AMOLED production. AMOLED will continue to replace TFT LCD
in the high-end small- to medium-size panel market. Taiwan-based panel makers will therefore see
increasingly fierce competition in the high-end panel market although their market position will be
stronger in the midrange smartphone panel market where pixel density stands at 250-300ppi.
Consequently, while the year-on-year growth rate for Taiwan's small- to medium-size TFT LCD
shipments will be higher in 2013 than in 2012, the growth rate is expected to begin to decline year
on year from 2014 as Japan Display and LG Display begin LPTS TFT LCD production using 6G
factories.