Manufacturers of TFT LCD panels are increasingly using 8G fabs to manufacture tablet and smartphone panels. This is significantly increasing the available production and driving down prices for these displays. According to DisplaySearch, 8G accounted for 41% of the total TFT LCD input capacity in the third quarter of 2013. It is expected to reach 44% in third-quarter 2014, as panel makers continue to bring new G8 capacity online.
"8G fabs, which use very large glass substrates, were originally built to produce large-area TV panels. In order to have economical production of TFT LCD panels, each sheet moving through a fab needs to yield six or more individual panels," said David Hsieh, VP of Greater China market at DisplaySearch. "However, due to shifts in production strategies and capacity conversion, 8G now also makes sense for monitors, notebooks, and tablet displays."
A single 8G substrate can generate more than 300 7-inch tablet PC panels, or more than 600 5.5-inch smartphone panels. Even a small percentage of 8G production would greatly increase small- to medium-size LCD panel supply, and as such will also drive down small- to medium-size panel prices. At the estimated amount of 8G production, approximately 50 million additional tablet panels and 100 million additional smartphone panels will be produced.
Another impact of greater 8G production could be on the business model for mobile panels. "With a large glass substrate like 8G used for small- to medium-size panel production, we expect the open-cell business - shipment of panels without backlight or module assembly in an array-glass form factor - will prevail in the small- to medium-size LCD industry," Hsieh said.
The percentage of 8G production dedicated to small- to medium-size panels increased from less than 1% in first-quarter 2013 to 3% in fourth-quarter 2014. LCD TV still comprises the majority of 8G production, but has been decreasing gradually, falling from 90% in firs-quarter 2013 to 87% in third-quarter 2013. It is expected to decline to 84% by second-quarter 2014.
While the desktop monitor market is shrinking overall, larger sizes are trending upward, and panel makers are increasing the allocation of 8G production to LCD monitors, from 8% in first-quarter 2013 to 11% by third-quarter 2014. "BOE and Innolux are especially keen to shift 8G capacities to LCD monitor production," according to Hsieh.
Article translated by Alex Wolfgram
