Taiwan AM OLED makers not competitive with Japan and Korea makers

Taiwan-based companies are lagging their counterparts in Korea and in Japan in their ability to develop active-matrix AM OLED (active-matrix organic light-emitting diode) display panels. They have also been slower to secure and license the related patents and expand their production, according to sources.

Japan-based OLED makers, such as SK Displays (SKD), Toshiba Matsushita Display Technology (TMDisplay) and Hitachi have begun volume production of AM OLEDs, but some Taiwan companies are postponing their schedules and will not start volume production until 2005. Of the projected 15 AM OLED production lines in Taiwan, Japan and South Korea in 2005, nine will belong to Japanese makers, the sources say.

Taiwan-based RiTdisplay, although not having a production line dedicated to AM OLEDs, is the most advanced AM OLED developer in Taiwan. The company shipped full-color AM OLED samples this June, but it will not begin volume production by year-end as it had formerly predicted. Production will be postponed until after the first quarter of next year since the company is having difficulty improving its AM OLED yields, sources indicated.

Nevertheless, Taiwan-based large-size panel makers are aggressively planning AM OLED panel production. AU Optronics (AUO) plans to volume-produce AM OLEDs in the first quarter of 2005, while Chunghwa Picture Tubes (CPT) has decided to use one of its third-generation (3G) plants to produce amorphous-silicon-(a-Si)-driven AM OLEDs. In addition, Chi Mei Optoelectronics (CMO) plans to set up an OLED production line by year-end and volume-produce LTPS (low-temperature polysilicon)-driven AM OLEDs in 2005.

Although PM OLEDs (passive-matrix OLEDs) currently account for more than 95% of total OLED shipments, sources expect AM OLEDs to soon overtake PM OLEDs and become the mainstream since AM OLED technology is becoming more mature. Although PM OLEDs generate higher yields and require less time to produce, the panels consume more power, have a shorter expected life span and are not suitable for large-size products.

Source: companies, compiled by DigiTimes, October 2004.

Article translated by Carrie Yu and edited by Michael McManus