TFT LCD Panels

The Hsin Chu Science Park has for a long time been the driving force of Taiwan’s electronics industry. Earlier the Park was the hotbed of the island’s semiconductor industry, but these days optoelectronics and fabless design houses dominate, subtly changing the spectrum of companies in the Hsin Chu Science Park. To encourage even more TFT LCD panel makers to move in, the Park was recently expanded to include two new bases—Chiu Nan and Lon Tan.



According to the Park’s financial report released in August, the total revenue for the first half of 2005 was $14.17 billion. The newer members of the Park, especially Innolux Display and Quanta Display, are estimated to generate revenues of over $1.27 billion, the Park’s management bureau revealed.







Leading TFT LCD panel makers prefer to establish themselves in Chiu Nan where “cutting-edge” R&D is done.

For instance, Toppoly and Univision are focusing on the next generation display technologies such as LTPS LCD, and active and passive OLED panels. Industry experts believe that panel applications either in new portable devices or to replace those found in traditional automobile displays are on the increase these days. “Currently the panel for handset usage is for 1.5- inch OLED and this will extend to 2 inches for other displays next year. Besides, we are currently sampling OLED panels for car-use monitors,” says Carl Chen, CEO of Univision. He adds that due to the demand for mobile phones, sub-displays and MP3 players,Univision expanded its monthly capacity for OLED panels to 12,000 from 5,000 substrates in July. “The third full-color production line will be implemented by the end of 2005,” he says.



Taking advantage of the excellent infrastructure afforded by the Park, some TFT LCD panel makers such as AUO, are eager to increase shipment and improve the IP capability against their Korean competitors. Recently, the company signed a patent assignment agreement with IBM. With this agreement, about 170 US patents relating to TFT-LCD technology would be transferred to AUO. Patents in the agreement cover almost all aspects of key TFT-LCD-related technologies, including TFT Array process (TFT structure production), Cell process, such as One Drop Fill Technology, RGB Color Filter, Backlight and TFT driving circuit. “We are not only satisfied with meeting the goal in shipment, but to reinforce the defense capability in TFT-LCD-related IP,” says Dr. Fan Luo, AUO’s chief technology officer.





With more panel makers moving in the Park it is becoming vital that a sufficient quantity of key components are available so as not to slow down the production process. “Until now the supply of TFT LCD drivers is quite sufficient, but this will last only till the end of this year,” says K.Y. Lee, president of AUO. The concern for a sufficient quantity of LCD drivers becomes all the more acute, since presently there are around 20 to 30 fabless IC design houses engaged in related IC design in the Park. “The new start-ups in Hsin Chiu Science Park engaged in LCD driver are increasing. But the key point for differentiation is to design the driver with capability of high integration and implemented in large size display,” says Eric Jain, analyst at IEK.



According to the Q2 report of MIC, shipments of large TFT LCD panels is estimated to be worth $15,500 million. That alone is sufficient to keep to electronics companies in the Hsin Chu Science Park in the limelight.