Wide Viewing Angle Performance Remains Crucial In LCD TV; Vertical Alignment Continues To Dominate, Despite Competition From In-Plane Switching

[The following is a release from DisplaySearch]

October 16, 2008

DisplaySearch, the worldwide leader in display market research, has released its Q3’08 Quarterly Wide Viewing Angle Technology Shipment and Forecast Database, which states that 70% of the LCD TV panels shipped in 2008 on an area basis will be of the VA (vertical alignment) type. The share for IPS (in-plane switching) panels will be 24%, and the TN+WVF (wide viewing film) share will be 6%. VA suppliers include AUO, CMO, CPT, Samsung and Sharp. IPS Alpha and LG Displays are currently supplying IPS panels, and BOE in China is forecast to provide a type of IPS panel called FFS (fringe field switching) starting in 2011. Drawing on analysis of LCD TV panel supplier capacity expansion plans, as well as product development strategies for LCD TV panels, the report forecasts that VA will continue to dominate the LCD TV market, but the areal share will fall to 65% in 2012 while IPS share (including FFS) will increase to 28% in 2012, as shown in Table 1. Table 1: LCD TV Panel Wide View Angle Technology Share by Area 2006 2007 2008 2009 2010 2011 2012 TN+WVF 6% 7% 6% 5% 6% 6% 7% IPS/FFS 26% 26% 24% 26% 27% 28% 28% VA 68% 66% 70% 69% 67% 65% 65% Source: DisplaySearch Q3’08 Quarterly Wide Viewing Angle Technology Shipment and Forecast Database The DisplaySearch Quarterly Wide Viewing Angle Technology Shipment and Forecast Database is the only source that tracks wide viewing angle technologies by panel supplier, application, size, and resolution in unit and area terms, and provides a long-term forecast. Highlights of the Q3’08 Quarterly Wide Viewing Angle Technology Shipment and Forecast Database include * In LCD TVs smaller than 26”, IPS and VA types will disappear from 2009 due to the large adoption of TN+WVF LCD monitor panels such as 19”W (wide format), 22”W, and the coming 15.6”W, 18.5”W, 20”W and 21.6”W. * For 26” LCD TVs, TN+WVF type is forecast to grow rapidly to 81% in 2012 after starting with a 4% share in 2006, when it was first introduced. The reasons for the rapid growth are that TN+WVF panels have a cost and yield rate advantage and can now provide performance similar to the VA or IPS type. In 26”, IPS type will be phased out from 2010, and VA share will drop to 19% in 2012 on an area basis. * For VA type LCD TV panels in Q2’08, Samsung is the dominant supplier with 29% share, followed by 24% for AUO, 19% for Sharp and 15% for CMO. For IPS types, LG Display is leading with 82% share, and IPS-Alpha has 18% on an area basis in Q2’08. * For the LCD monitor application, 95% of the panel area shipped in 2008 will be TN+WVF type. The IPS and VA types are used on high-end LCD monitor models, with a 1% share each. * For LCD monitor applications, the TN+WVF type panels are growing rapidly in the 23-24” segment as panel makers continue to roll out products and reduce focus on the VA and IPS types. For 23-24” LCD monitors, the TN+WVF type has grown from 49% in 2007 to 82% in 2008 and its share is expected to grow to 95% in 2012. * In 2012, over 95% of notebook panels will be pure TN type, without WVF attached. According to Yoshio Tamura, Senior Vice President of DisplaySearch and the author of the Quarterly Wide Viewing Angle Technology Shipment and Forecast Database, “We continue to see the IPS and VA camps competing in terms of capacity, cost efficiency, yield rate and process technology improvements. With LG Display forming an IPS alliance to educate end users, and with several LCD TV brands starting to promote IPS or VA, consumer recognition of wide viewing angle technology and its benefits could be a feature consumers seek. Meanwhile, as new panel makers build Gen 6 and larger fabs in China and India targeted at LCD TV panel production, wide viewing angle technology development may influence the success of newcomers in TFT LCD.” For information on this DisplaySearch report, please contact your DisplaySearch sales representative for more details. If you need further information or assistance please contact us at +1.512.687.1511 or sales@displaysearch.com, or the local DisplaySearch offices in China, Japan, Korea, Taiwan and the United Kingdom.

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