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Company News >> AMOLED mobile phone panel production triple jump quickly narrowed the gap with the cost of the LCD panel 3rd,March,2018
                                         As more and more intelligent mobile phones using AMOLED panel, not only prompted the AMOLED panel shipments surge, the output value is also followed. At the same time, affected by the economies of scale, the cost gap between AMOLED and LCD mobile phone panels has been further narrowed. The personal hand-to-hand battles between the two sides have become even more heated while the market has apparently reversed to the AMOLED side.
AMOLED panel swept the mobile phone industry, slim advantages superior, significantly eat the existing LCD market, estimated 3 years later, AMOLED panel penetration in the smart phone market will approach 50%, almost half of it.
AMOLED panel in the field of high-end mobile phone layout, began to cross the lower resolution market, with a substantial increase in shipments, has caused AMOLED and LCD panel cost gap rapidly narrowed. According to IHS Markit, the 5.5-inch HD AMOLED panel costs $ 12.1 and the 5.5-inch HD LTPS LCD panel costs $ 12.2, both of which have been tipped.
In fact, because the AMOLED structure is simpler than the LCD panel, the material cost of the AMOLED should be lower than that of the LCD panel in principle. The higher cost of the AMOLED panel mainly falls on other expenses, such as depreciation and labor costs.
Due to the substantial increase in AMOLED panel production, the cost gap with the LCD panel has been drastically reduced under the influence of economies of scale. However, if the AMOLED panel still has higher manufacturing costs than the a-Si LCD panel technology, the current 5.5-inch HD A-Si LCD panel manufacturing costs only about 10.4 US dollars, still lower than the AMOLED panel.
However, LCD manufacturing costs still hold the upper hand in higher-resolution markets, with an estimated 30% cost gap between the 5.5-inch QHD AMOLED panel and the 5.5-inch QHD LTPS LCD panel, a-Si technology can not achieve the resolution of QHD.
It is worth mentioning that, with the introduction of flexible substrates, the cost of AMOLED is further increased, the current 5.5-inch QHD flexible display panel manufacturing costs about 24 dollars, with the same size, with the resolution of the rigid display panel, high About 25% of the rate.
In general, the flexible AMOLED panels are mainly produced in the 6th generation, while most commercially available rigid AMOLED panels are mainly produced in the 5.5 generation plant. Therefore, the 25% cost difference mainly comes from the 6th generation plant production flexibility And 5.5 generation plant rigid substrate generation caused by the difference between generations.
If rigid AMOLED panels are also produced on 6th generation, the cost is estimated to be reduced by about 20%. So, if rigid and flexible AMOLED panels are produced on the 6th generation, the manufacturing cost gap will be much larger than 25%.
In fact, AMOLED panel in addition to the smart phone applications swept the market, it also gradually rise in the field of television, television is currently the second largest AMOLED panel market, while the global leader in the LG Display (LG Display) second The AMOLED TV panel production line E4-2 is about to start production and is expected to open in the second half of 2017. Based on the increase in production capacity, it is estimated that the shipment of AMOLED TV panels will increase from 89,000 in 2016 to about 1.5 million in 2017.
Undoubtedly, smart phones and TV applications are the two driving forces driving the growth of AMOLED panels. In addition, the growth momentum of AMOLED panels also includes the demand for head mounted displays and mobile computers, which are also steadily rising.
Led by smartphones and TVs, IHS Markit estimates that global AMOLED panel shipments will increase by 63% in 2017 and output value is expected to reach 25.2 billion U.S. dollars in 2017. It is estimated that by 2021, AMOLED panels will be based on The compound annual growth rate of 22% of the rate of expansion, when the output value will be more than 40 billion US dollars.

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