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Applied Market Intelligence Mobile Displays - Market and Technology Trends Vinita Jakhanwal Principal Analyst Slide 2 iSuppli Corporation 2 Copyright 2000-2008 iSuppli Corporation. All Worldwide Rights Reserved. Confidential Patents Pending Overview Displays are a significant part of the device BOM Average display costs 15% to 20% of BOM If we add touch cost, BOM becomes larger A mix of display technologies continue to be used Specific display requirements determine display technology Market segment, regions, OS etc. Specially important when integration with touch is involved Supplier landscape is changing Shift in regional presence capacity, price, customers Emerging dominance of the ODM Touch is crucial for next phase of revenue growth Many different approaches Many nodes in supply chain Consolidation will be the trend Slide 3 iSuppli Corporation 3 Copyright 2000-2008 iSuppli Corporation. All Worldwide Rights Reserved. Confidential Patents Pending Small/Medium TFT LCD Shipment Large Market for small displays Growing Market for consumer devices Investment in larger generation fab has freed capacity for SMD displays Price declines Slide 4 iSuppli Corporation 4 Copyright 2000-2008 iSuppli Corporation. All Worldwide Rights Reserved. Confidential Patents Pending Mobile Handset Display Market Mobile Display industry does ok in 2009 Seasonality of 1Q is not so pronounced in 2010 Smartphone market continues to pull demand a-Si TFT LCD will be the dominant display technology Other technologies will coexist to support different regions, segments Slide 5 iSuppli Corporation 5 Copyright 2000-2008 iSuppli Corporation. All Worldwide Rights Reserved. Confidential Patents Pending AMOLED Update SMDs special support to Samsung Electronics size, touch tech SMD plans to add new larger gen fab likely to be Gen 5.5 Gen 8 line decision likely by 2012 AMOLED prices around 1.2x equivalent LTPS panel for wVGA AUO and TPO likely to start production in 2011. TPO may gain because of relationship with HTC Slide 6 iSuppli Corporation 6 Copyright 2000-2008 iSuppli Corporation. All Worldwide Rights Reserved. Confidential Patents Pending Mobile Handset Display Market by Size Mainstream display size is still 2.x-inches Smartphones are using larger than 3-inch displays Smartphones still a limited portion of the total handset market Slide 7 iSuppli Corporation 7 Copyright 2000-2008 iSuppli Corporation. All Worldwide Rights Reserved. Confidential Patents Pending Smartphone Market Smartphone market is growing rapidly at a CAGR of 22% Still a small portion of the total handset market Smartphones are mainly using wQVGA, wVGA, hVGA and VGA pixel formats Nexus 800x480, Motorola Droid 854x480 Slide 8 iSuppli Corporation 8 Copyright 2000-2008 iSuppli Corporation. All Worldwide Rights Reserved. Confidential Patents Pending Small/Medium TFT LCD Shipment Taiwan Taiwan accounted for 48% of total mobile display TFT LCD panel shipment in 2009 Most of the panel shipments are made to Chinese gray/clone market segment Slide 9 iSuppli Corporation 9 Copyright 2000-2008 iSuppli Corporation. All Worldwide Rights Reserved. Confidential Patents Pending Average Value of Displays purchased Handset OEM, 3Q09 Slide 10 iSuppli Corporation 10 Copyright 2000-2008 iSuppli Corporation. All Worldwide Rights Reserved. Confidential Patents Pending Ebook Market Slide 11 iSuppli Corporation 11 Copyright 2000-2008 iSuppli Corporation. All Worldwide Rights Reserved. Confidential Patents Pending TFT LCD area Supply Japanese losing capacity Closing older generation fabs Mergers and acquisitions TMD wants to convert Singapore fab for SMD production Inability to raise investment to do so Sold to AUO Slide 12 iSuppli Corporation 12 Copyright 2000-2008 iSuppli Corporation. All Worldwide Rights Reserved. Confidential Patents Pending TFT LCD area Supply Gen 4 Area capacity 2 Gen 1 fabs in operation, 13 Gen 2 fabs (5 in use), 9 Gen 3 (6 in use), 6 Gen 4 Japan - 50% of area capacity comes from smaller than Gen 4 fabs Gen 4 percentage is increasing because older gen fabs are being closed Total area capacity is decreasing Japanese share in Gen 4 fab area capacity is decreasing as Taiwan and China expand capacity for SMD Gen 4 Area capacity by Region Japan Capacity by Fab Gen Slide 13 iSuppli Corporation 13 Copyright 2000-2008 iSuppli Corporation. All Worldwide Rights Reserved. Confidential Patents Pending Mobile Touch Main Touch technologies for Mobile Resistive Capacitive In-cell/ On-cell touch Other Haptics, IR, Active digitizer Touch Technology Issues Within LCD there are differences in LCD drive technologies TN LCD, VA LCD, IPS LCD, AFFS LCD LCD vs AMOLED Projective capacitive sensitivity to signal noise for LCDs It has to be very finely tuned to eliminate the noise and fine tune the signal to noise ratio. While this is achievable it makes it more difficult when you want to add something such as a digitizer to the device components. Each additional source of signal noise has to be taken into account and worked around. AMOLED overcomes this issue as there is no LC material that needs to align for the drive AMOLED on-cell touch is faster to the market than LCD on-cell AMOLED innovatively uses the encapsulation glass as the touch glass surface No color filter layer improvers transmittance Taiwan Suppliers are leaders for mobile touch Capacitive suppliers using old LCD fabs to make ITO coated touch panels Resistive touch for mobile Japan, Taiwan, popular in Asia In-cell/On-cell touch in mostly coming out of Taiwan Slide 14 iSuppli Corporation 14 Copyright 2000-2008 iSuppli Corporation. All Worldwide Rights Reserved. Confidential Patents Pending Differentiation Will Be Key Need new approach to win Green LCD Innovation Product design Manufacturing Cost management Product Differentiation Thin form factor Low Power Integrated touch screen Collaboration Slide 15 iSuppli Corporation 15 Copyright 2000-2008 iSuppli Corporation. All Worldwide Rights Reserved. Confidential Patents Pending Small/Medium Display Service Small/Medium Displays Market Tracker (Quarterly) Small/Medium Supply Demand Tracker (Quarterly) Small/Medium Monthly Price Tracker (Monthly) Displays/Mobile Handset Market Tracker (Quarterly) Detailed look at the mobile handset display market All technologies OLED, EPD, LCD Finer size, pixel format and color segmentation OLED Market Tracker (Bi-annual)