lcd panel price ihs manufacturer

(2 November, 2017) – A major decrease in manufacturing cost gap between organic light-emitting diode (OLED) display and liquid crystal display (LCD) panel is expected to support the expansion of OLED TVs, according to new analysis from

analysis estimates that the total manufacturing cost of a 55-inch OLED ultra-high definition (UHD) TV panel -- at the larger end for OLED TVs -- stood at $582 per unit in the second quarter of 2017, a 55 percent drop from when it was first introduced in the first quarter of 2015. The cost is expected to decline further to $242 by the first quarter of 2021, IHS Markit said.

The manufacturing cost of a 55-inch OLED UHD TV panel has narrowed to 2.5 times that of an LCD TV panel with the same specifications, compared to 4.3 times back in the first quarter of 2015.

“Historically, a new technology takes off when the cost gap between a dominant technology and a new technology gets narrower,” said Jimmy Kim, principal analyst for display materials at IHS Markit. “The narrower gap in the manufacturing cost between the OLED and LCD panel will help the expansion of OLED TVs.”

However, it is not just the material that determines the cost gap. In fact, when the 55-inch UHD OLED TV panel costs were 2.5 times more than LCD TV panel, the gap in the material costs was just 1.7 times. Factors other than direct material costs, such as production yield, utilization rate, depreciation expenses and substrate size, do actually matter, IHS Markit said.

The total manufacturing cost difference will be reduced to 1.8 times from the current 2.5 times, when the yield is increased to a level similar to that of LCD panels. “However, due to the depreciation cost of OLED, there are limitations in cost reduction from just improving yield,” Kim said. “When the depreciation is completed, a 31 percent reduction in cost can be expected from now.”

by IHS Markit provides more detailed cost analysis of OLED panels, including details of boards, arrays, luminescent materials, encapsulants and direct materials such as driver ICs. The report also covers overheads such as occupancy rate, selling, general and depreciation costs. In addition, this report analyzes OLED panels in a wide range of sizes and applications.

IHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 key business and government customers, including 85 percent of the Fortune Global 500 and the world’s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.

IHS Markit is a registered trademark of IHS Markit Ltd and/or its affiliates. All other company and product names may be trademarks of their respective owners © 2017 IHS Markit Ltd. All rights reserved.

(January 23, 2019) – Global shipments of large thin-film transistor (TFT) liquid crystal display (LCD) panels rose again in 2018 despite concerns of over-supply in the market. In particular, area shipments increased by 10.6 percent to 197.9 million square meters compared to the previous year, driven by TV and monitor panels, according to

Fierce price competition in large 65- and 75-inch display panels was ignited as Chinese panel maker BOE started the mass production of the panels in 2018 at its B9 10.5-generation facility. “With BOE operating the 10.5-generation line, panel makers have become more aggressive on pricing since early 2018 to digest their capacity,” said

Rising demand for gaming-PC and professional-purpose monitors boosted shipments of high-end, large panels. “Some panel makers have allocated more monitor panels to the fab, replacing existing TV panels, to make up for poor performance of that business,” Wu said.

Demand for other applications, which include public, automotive and industrial displays, recorded the highest growth rates of 17.5 percent by area and 28.6 percent by unit. “Panel makers view these applications as a new cash cow that can compensate for the sharp price erosion in main panels for TVs, monitors and notebook PCs,” Wu said.

LG Display led the area shipments of large display panels, with a 21 percent share in 2018, followed by BOE (17 percent) and Samsung Display (16 percent). BOE boasted the largest unit-shipment share of 23 percent, followed by LG Display (20 percent) and Innolux (17 percent), according to the

Large TFT LCD panel shipment growth is expected to continue in 2019. The preliminary forecast for unit shipments of three major products indicates that panel makers will continue to focus on the monitor and notebook PC panel businesses, increasing shipments by 5.3 percent and 6.6 percent, respectively, over the year, while shipments of TV panels are forecast to grow just 2.6 percent.

In 2019, three new 10.5-generation fabs – ChinaStar’s T6, BOE’s second fab and Foxconn/Sharp’s Guangzhou line – are expected to start mass production. All of them are assigned to manufacture TV panels, further boosting TV panel supply. “As the TV panel business is predicted to remain tough, panel makers, who enjoyed relatively better outcomes with monitor and notebook PC panels in 2018, will likely focus on the IT panel businesses,” Wu said.

IHS Markit provides information about the entire range of large display panels shipped worldwide and regionally, including monthly and quarterly revenues and shipments by display area, application, size and aspect ratio for each supplier.

IHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 business and government customers, including 80 percent of the Fortune Global 500 and the world’s leading financial institutions.

IHS Markit is a registered trademark of IHS Markit Ltd. and/or its affiliates. All other company and product names may be trademarks of their respective owners © 2019 IHS Markit Ltd. All rights reserved.

At least five LCD display factories at the epicenter of the coronavirus outbreak are suffering production slowdowns, which is turn is expected to have an effect on the supply and pricing of displays used in PCs and LCD TVs.

Five LCD fabs reside in Wuhan, China, which has basically been shut down to prevent the coronavirus from spreading. Informa Tech’s IHS Markit service said Friday that they expect that the capacity utilization for all LCD fabs in China could fall by at least 10 percent and by as much as 20 percent during February.

As a result, LCD panel prices are expected to rise. IHS said that preliminary estimates say that per-panel prices could rise $1 to $2, but could go as high as $3 to $5. That might not sound like much, but manufacturers typically tack on extra profit margins at each stage of production, potentially raising sale prices somewhat higher.

IHS estimates that about 55 percent of all LCD panels in the world will ship from China in 2020, meaning that the Chinese outbreak will have worldwide effects on the supply chain. Five fabs are in Wuhan itself, including two fabs owned by China Star Optoelectronics Technology, two owned by Tianma, and one BOE fab.

“Display facilities in Wuhan currently are dealing with the very real impacts of the coronavirus outbreak,” said David Hsieh, senior director of displays, at IHS Markit technology research, in a statement. “These factories are facing shortages of both labor and key components as a result of mandates designed to limit the contagion’s spread. In the face of these challenges, top display suppliers in China have informed our experts that a near-term production decline is unavoidable.”

IHS reported seeing panic buying, including doublebooking, where a buyer will buy as much as they need from two suppliers just to ensure that they’ll be able to get the supplies they require. Even if the supplies are there, IHS also said that production at several key third-party LCD module suppliers has now ceased, severely impacting panel production throughout the country.Besides the slowdown in production at fabs that are already operating, IHS said that it expects new fabs to not come on line as quickly as expected.

All this is expected to have a direct effect on LCD panel pricing, and possibly ripple effects through laptop manufacturing as well. It’s worth noting that while Intel and AMD did not cite coronavirus effects among their forecasts, Microsoft did, with a broader than usual forecast for the second half of the year.

A major decrease in manufacturing cost gap between organic light-emitting diode (OLED) display and liquid crystal display (LCD) panel is expected to support the expansion of OLED TVs, according to new analysis from IHS Markit, a world leader in critical information, analytics and solutions.

The OLED Display Cost Model analysis estimates that the total manufacturing cost of a 55-inch OLED ultra-high definition (UHD) TV panel – at the larger end for OLED TVs – stood at $582 per unit in the second quarter of 2017, a 55% drop from when it was first introduced in the first quarter of 2015. The cost is expected to decline further to $242 by the first quarter of 2021, IHS Markit said.

The manufacturing cost of a 55-inch OLED UHD TV panel has narrowed to 2.5 times that of an LCD TV panel with the same specifications, compared to 4.3 times back in the first quarter of 2015.

“Historically, a new technology takes off when the cost gap between a dominant technology and a new technology gets narrower,” said Jimmy Kim, principal analyst for display materials at IHS Markit. “The narrower gap in the manufacturing cost between the OLED and LCD panel will help the expansion of OLED TVs.”

However, it is not just the material that determines the cost gap. In fact, when the 55-inch UHD OLED TV panel costs were 2.5 times more than LCD TV panel, the gap in the material costs was just 1.7 times. Factors other than direct material costs, such as production yield, utilization rate, depreciation expenses and substrate size, do actually matter, IHS Markit said.

The total manufacturing cost difference will be reduced to 1.8 times from the current 2.5 times, when the yield is increased to a level similar to that of LCD panels. “However, due to the depreciation cost of OLED, there are limitations in cost reduction from just improving yield,” Kim said. “When the depreciation is completed, a 31% reduction in cost can be expected from now.”

The OLED Display Cost Model by IHS Markit provides more detailed cost analysis of OLED panels, including details of boards, arrays, luminescent materials, encapsulants and direct materials such as driver ICs. In addition, this report analyzes OLED panels in a wide range of sizes and applications.

Research firm IHS Markit says the large format LCD display market is booming at the moment, with panel shipments hitting a record monthly high in July 2018 in terms of unit and area shipment.

London-based IHS says unit shipments increased by 10 percent in July compared to a year ago, to reach 64.3 million units, while area shipments jumped 19 percent during the same period to 17 million square meters.

“New facilities from China, such as BOE’s Gen 10.5, CHOT’s Gen 8.6 and CEC-Panda’s Gen 8.6, started mass production in the first half of this year. The production at the fabs has increased since the second quarter of 2018 as their glass inputs and production yield rates have improved,”says Robin Wu, principal analyst with the research firm.“Despite the growing production, panel makers have maintained the utilization rate and instead tried to push out panel shipments by lowering panel prices in the first half of 2018. That’s one of the reasons that panel shipments are continuously growing.”

The Large Area Display Market Tracker report is primarily about the TV, and not the commercial panel market, but gives a broader sense of what is going on and who the big players are in LCD.

IHS says The LCD TV panel contributed to the record high shipments of larger-than-9-inch LCD panels in July. Unit shipments of LCD TV panels increased by 15 percent in July year on year to 24.6 million units and area shipments jumped 21 percent to 13.3 million square meters, according to the by IHS Markit.

Panel makers suffered from high TV panel inventories in the first half of 2018 due to growing production capacities. Panel prices have been weak for a year and panel makers’ profit margins have plunged. “Therefore, panel makers wanted to clear up the inventory before the third quarter, high-demand season, when they aim to raise the panel price back again,” Wu said. “That has led to the fast growth in TV panel shipments lately, which as a result pulled the total large panel shipments to a historical high in July.” As the panel makers hoped, LCD TV panel prices rebounded in July 2018.

Chinese panel maker BOE led the large TFT LCD market in July 2018 in terms of unit shipments with a stake of 24 percent, followed by LG Display with 19 percent. However, in terms of area shipments, South Korea’s LG Display continued to lead with a 20 percent share, followed by BOE with 18 percent.

Since the beginning of the year, LCD panel prices showed varying degrees of growth, IHS announced the latest international market panel price trend, Which the highest increase of more than 17 dollars. However, because the LCD panel in the cost of the total TV cost accounted for about 80%, so the price of the overall trend of television also has been affected.

According to statistical data, both small-screen or large-screen TV panels have appeared in varying degrees of gains, it can be said to cover the full size. In fact, in addition to 720P and 1080P panel, 4K ultra-high-definition TV panels have not escaped the wave of price increases. Among them, 49-inch 4K ultra-high-definition panel, the maximum increase of 13 dollars, Whose maximum offer is163 dollars. 55-inch 4K ultra-high-definition TV panel, the maximum increase of 8 US dollars, whose maximum offer is 205 dollars.

Throughout the TV market, After Letv decided on increasing the price of 100-200 yuan on the parts of 4th generation super Letv, Storm Group will also be the third quarter net profit fell sharply attributed to the TV panel and other raw material prices.

When it comes to the increasing reseaon,there are two main aspects.On the one hand,the fourth quarter of each year is the sales season of the panel,meanwhile,TFT Display TV manufacturers’ increasing demands.So that TV manufacturers can just accept the panel prices.On the other hand,the supply of TV panels is very tight because of capacity,which led to increasing price.

Year-over-year large-area display shipments are forecast to fall 5 percent, reaching 682 million units in 2015. This decline in unit shipments will be offset by an increase in large area thin-film transistor (TFT) liquid crystal display (LCD) shipment area, which is expected to grow 5 percent this year, according to IHS Inc., the global source of critical information and insight.

In addition to global currency issues that resulted in higher import prices for displays in most regions, slowing demand for information technology (IT) panels is driving down total unit shipments of large area TFT LCD displays. Combined year-over-year unit shipments for tablets, notebook PC and PC monitors will decline 12 percent. At the same time, TFT LCD TV panel unit shipments will increase by just 7 percent this year.

Similar to the unit-shipment trend, combined shipment area for displays used in PCs, notebooks and tablets is expected to decline 10 percent in 2015; however, year-over-year area shipments of TV panels is forecast to grow 9 percent this year. Increasing TV panel area shipment is leading to growth in the overall TFT LCD panel market, because TV displays comprise the vast majority (78 percent) of total panel area, according to the latest IHS Large Area Display Market Tracker.

“Maintaining television panel production is the most important factor in maintaining the display industry’s fab utilization,” said Yoonsung Chung, director of large area display research for IHS Technology. “Chinese panel manufacturers have focused on increasing Gen 8 fabs for some time now. To consume this added capacity, TV panel makers must produce more panels, which means the industry could end up adding excess panels to inventory, leading to sharp TV panel price erosion in the second half of this year.”

Although the average selling price (ASP) for TV panels has already dropped dramatically, as inventory issues remain, prices will likely continue to decline in the coming year. “Panel price erosion will lower the cost of 55-inch-and-larger TVs, which could end up stimulating consumer demand for larger televisions,” Chung said.

LONDON (June 21, 2018) – Despite better-than-expected first-quarter demand for thin-film transistor liquid-crystal display (TFT-LCD) TV sets and TV panels, market players would be well advised to adopt a more conservative outlook in demand growth for the coming quarters, according to IHS Markit (Nasdaq: INFO), a world leader in critical information, analytics and solutions.

Earlier market expectations assumed that demand would slow in the first quarter prompted by the observation that TV set makers would put a hold on panel purchases based on hopes that panel prices would drop further. Such a view was largely attributed by the development of Chinese panel makers planning aggressive investments over the next two to three years.

As it turned out, panel makers managed to sell more panels than originally forecasted in the first quarter because panel prices declined much faster than expected. According to IHS Markit, TV panel unit shipments increased by 13.3 percent in the first quarter compared to a year ago, while TV set shipments rose 7.9 percent during the same period.

“LCD TV panel shipments are expected to grow faster than the LCD TV set shipments, expanding the accumulated gap between the two even further,” said Ricky Park, director of display research at IHS Markit.

According to the latest Displaylong term demand forecast tracker by IHS Markit, the accumulated gap between LCD TV panel and set shipments in the second and third quarters of 2018 is expected to be higher than past 10 years, reaching 8.3 percent and 8.4 percent, respectively, from 7.9 percent in the first quarter. Furthermore, the gap is expected to remain high until 2019.

“The main reason for the higher gap is the aggressive investment in 10.5 generation fabs. TFT LCD capacity, in terms of area, will soar in the next four years,” Park said. “As capacity is expected to increase more than demand, panel suppliers will likely push to sell panels at lower prices while set makers are to hesitate buying panels expecting the price to drop even further.”

However, when the accumulated gap in panel-set shipments is high, an inventory correction should always follow. “TV makers should narrow the gap for healthy inventory control and reducing panel orders is a step in that direction,” Park said. “If TV set makers’ panel purchasing drops, it will likely cause a cash flow issue to panel suppliers, and they would need to reduce the utilization rate to control the supply.”