Spending on equipment used to make low temperature polysilicon (LTPS)-based displays is expected to surge to an all-time high of US$2.4 billion in 2011, according to DisplaySearch.
LTPS-based flat panel displays have long been a technology looking for a "killer application," and the strong demand for high performance smartphone applications is now driving rapid expansion of LTPS-based LCD and AMOLED capacity.
"LTPS is an enabling display manufacturing technology, and currently is the only method of mass producing AMOLEDs. LTPS also enables high resolution LCDs with higher transmission and lower power consumption," explained Charles Annis, DisplaySearch VP of manufacturing research. "The success of Samsung's AMOLED-based Galaxy phones and Apple's LCD-based iPhone 4 have pushed the performance standard of high-end mobile displays to a level that currently only LTPS can meet."
In 2011, supply of both AMOLEDs and LTPS LCDs are forecast to be extremely tight. Although panel makers are rushing to build new factories as fast as possible, they cannot add capacity fast enough to fulfill demand this year. Much of this year's new LTPS capacity expected to be added in 2011 will not ramp to full mass production until next year.
"Not only is the number of new LTPS-related investments extraordinary, but leading panel makers are for the first time ever scaling LTPS technology to 5.5G and larger substrates. The higher cost of specialized tools used to fabricate LTPS on large glass is also a significant contributing factor to the spike in LTPS-related equipment spending," Annis added.
Looking ahead, LTPS capacity expansions and equipment spending will remain relatively high. How long the trend will continue will likely be determined by the next killer application and by whether LTPS will also enable AMOLEDs to penetrate the large-area TV market.
Article translated by Yvonne Yu
