Panel expansion using Gen 8 fabs

As panel makers expand, they are increasingly using Gen 8 fabs for LCD TV panel production. According to the latest Quarterly Large-Area Production Strategy Report, 41% of LCD TV panels were produced on Gen 8 lines in Q3’10, a leap from 35% in Q2’10. The share is expected to grow to 42% based on panel makers’ plans. Meanwhile, 6% of notebook PC panels were made on Gen 6 lines in Q3’10, and will increase to 9%.

“The evolution of fab generations in the TFT LCD industry is not only a shift to larger glass substrates but also involves moves to increase production efficiency. For example, 32″ W LCD TV panels were originally designed to be made in Gen 6 fabs, but more than 70% of the 32″ W are currently produced in Gen 8 fabs and Gen 6 fabs have gradually shifted to LCD monitor panel production,” noted Shawn Lee, senior analyst for TFT LCD production strategy at DisplaySearch.

Gen 5 fabs dominate production of mini-note/slate PC panels, including 10.1-in mini-note and 9.7-in iPad panels, and 89% of notebook PC panels are made in Gen 5 fabs, from 11.6″ W to 18.4″ W. Gens 5-7 are currently the main fabs producing monitor panels, while 50% of TV panels are made in Gen 6 or Gen 7 fabs.

Another way to look at production strategy is by glass substrate input for each application. In area terms, panel makers allocated 5% of Gen 5, 25% of Gen 5.5, 65% of Gen 6, 78% of Gen 7, 97% of Gen 8 and 100% of Gen 10 for TV panel production.

TFT LCD production inputs were 34.1 million m² in Q3’10, a 10% decline from Q2, due to reduced capacity use. In Q4’10, panel makers are targeting 38.5 million square metres input, as they gradually increase use.

In unit terms, Korea dominated panel production with 52% share in Q3’10, up from 47% in Q2’10. Taiwan accounted for 38% in Q3’10, down from 42% in Q2’10. Japan had 6% and China 4% in Q3’10. The shares were expected to hold in Q4’10.

In Q3’10, LG Display dominated input area with 27%, followed by Samsung at 24%, Chimei Innolux at 16%, AUO at 14% and Sharp at 8%.

For LCD monitor panel production, area inputs in Q4’10 were dominated by LG Display with 27%, Chimei Innolux (26%), Samsung (18%), and AUO (15%). LG is producing 9.7″ slate PC panels on Gen 3.5 and 5, while Chimei Innolux and Samsung are using Gen 5. LG Display plans to produce 9.7″ panels on a Gen 6 line starting this year.

In Q3’10, accounting for capacity use, Gen 8 led in glass substrate input area, accounting for 27% of global capacity, followed by Gen 7 with 23%, Gen 6 with 20% and Gen 5 with 19%. Gen 5.5 accounted for merely 2% of input area and Gen 10 for 4%.