All contents of this file are copyright by the author and Displaybank Display Market Update August 29. 2007 August

All contents of this file are copyright by the author and Displaybank

Display Market UpdateDisplay Market Update

August 29. 2007

AugustAugust

All contents of this file are copyright by the author and Displaybank [2]

Index

Chapter 1. Latest Industry Issues

Chapter 2. Monthly Market Update

1. Large TFT-LCD Panel• Shipment Trend• Price Trend

2. Plasma Display Panel• Shipment Trend• Price Trend

3. OLED• Market Issues

4. Component & Materials• Display use ITO• PDP Material Market

5. SET Price Analysis• Flat TV SET Price Trend

Chapter 3. Report Introduction

1. PDP Module Manufacturing Cost Analysis & Forecast2. LCD TV Market Trend & Cost Analysis


Chapter 1Chapter 1Latest Industry IssuesLatest Industry Issues


Latest Industry Issues - Korea

Will SEC collaborate with SONY again for its 8G line investment?

As Samsung Electronics has embarked an additional investment in the 8th-generation LCD plant, whether Japan’s Sony Corp. would participate in the investment has attracted attention.

Industry sources said on August 20 that Samsung Electronics is currently planning to pour 1.8 trillion won ($1.92 billion) in the second-phase investment after the first-phase operation at the 8G No. 1 line.

Samsung Electronics, which has invested in the 7G No. 1 line and 8G No. 1 line jointly with Sony, has tapped into business opportunities with Sony for the 8G second-phase investment.

Given the fact that LCD market with a supply shortage from the second quarter of the year will continue into 2009, the outlook for the 50-inch and larger LCD TV market remains positive, overall. As Japanese LCD TV rival Sharp has officially announced its investment in the 10G line following the 8G one, stepping up its push into the 50-inch market, Sony is urgently needing to retain large-size LCDs to respond to this movement, experts indicate.

S-LCD Ships First LCD Panels from 8th Generation Line

S-LCD Corporation, a joint venture between Samsung Electronics Co., Ltd. and Sony Corporation, today announced the shipment of LCD panels produced from its 8th Generation Line. S-LCD's 8th Generation Line is capable of processing the world's largest mother glass substrates, measuring 2,200mm by 2,500mm.

LCD panels shipped from this 8G line marks a major turning point in the market for LCD TVs in the 50-inch (diagonally) class. With 7G line which is already in operation, S-LCD has sufficient capacity to meet demand for 40-inch panels. The 8G line is slated to supply 46-inch and 52-inch panels, and that plan was evident by the contents of the first shipment of 52-inch LCD panels for full-HD TVs.

The new line would reach its full monthly output of 50,000 panels by the end of the year.

?


Latest Industry Issues - Japan

Panasonic will sell 37” LCD TV in September

Panasonic will begin selling its largest LCD TV in September at 300,000 yen. The company ai

ms to sell 25 percent of the world's flat- panel TVs with screens measuring at least 37 inches

by the year ending March 2010, from 18 percent this March, Matsushita said in January.

In the next-generation flat screen TV market, the Japanese electronics maker has up until no

w only sold plasma TVs at sizes 37-inches and larger. Matsushita said in a press release the

TVs will go on sale in September.

Matsushita's IPS Alpha Technology Ltd. venture with Hitachi Ltd. and Toshiba Corp. will sup

ply panels for the new LCD sets. .

NEG adds additional investments to expand LCD and PDP glass output

Nippon Electric Glass (NEG) plans to invest an additional 35 billion yen (US$301 million) to

expand its TFT LCD glass substrate capacity by 10% before the end of fiscal year 2007 (end

ing in March 31, 2008), according to a recent report from the Japanese-language Nihon Keiz

ai Shimbun.

Meanwhile, the company also plans to invest 7 billion yen to increase capacity for PDP (pla

sma display panel)-use glass before the fiscal year of 2008 (ending in March 31, 2009), the

paper noted.

The glass supplier is also reducing glass output for CRT TV at its Malaysia facility, added t

he paper.


Latest Industry Issues – Taiwan

AUO set to ship 46-inch TV panels to Sony

AU Optronics (AUO) is set to ship 46-inch LCD TV panels to Sony.

Sony's 46-inch LCD TV panels used to only be supplied by S-LCD, a joint ve

nture (JV) between Samsung Electronics and Sony, from its seventh-genera

tion (7G) plant.

AUO began to volume produce 46-inch LCD TVs at its 7.5G plant in Februar

y 2007, according to the company. The panel maker already ships 20-, 26-, 3

2-inch TV panels to the Japan-based company.

In addition to AUO, Sony also purchases TV panels from Taiwan's Chi Mei

Optoelectronics (CMO) and Chunghwa Picture Tubes (CPT). Nearly 30% of

Sony's TV panels are sourced from Taiwan-based companies, noted industr

y sources.

CMEL to begin volume Production of 2.4-inch AMLED panels

Chi Mei EL (CMEL) will start volume production of 2.4-inch AMOLED (active

matrix organic light-emitting diode) panels this month, with one of its client

s expecting to begin marketing new handsets with the displays in Japan in

October.

If the production of 2.4-inch AMOLED panels goes smoothly, CMEL's total s

hipments of AMOLED panels are expected to top 200,000-300,000 units a m

onth in February 2008, which will help the company reach breakeven startin

g that month, Chen indicated.

Overall yield rates for the current production of 2-inch panels stands at 6

0%, with the yields expected to improve to 70% by the end of the year and u

p to 80% in 2008, Chen claimed.

HannStar to sell another 3G LCD plant to Wintek

HannStar Display today announced that the company will sell another third-

generation (3G) TFT LCD plant and an office building to Wintek for NT$9 bill

ion (US$273 million), according to a filing with the Taiwan Stock Exchange.

After the deal, HannStar's only plant will be its 5G plant.

Last September, the panel maker sold a 3G plant to Wintek. The transaction

price was around NT$6.1 billion (US$186 million), including land, building a

nd machinery, according to Wintek's announcement. At that time, HannStar

also said it will secure 3.1% of Wintek's outstanding shares and one seat on

Wintek's board of directors.


Latest Industry Issues – China

32-inch PDP TVs picks up in China

Demand for 32-inch PDP (plasma display panel) TVs reportedly is picking up in China, with L

G Electronics (LGE) becoming a major source of PDPs for the segment, and domestic vendor

s launching models more price competitive than LCD TVs of the same size.

Since the beginning of August, domestic TV vendors in China have begun launching 32-inch

PDP TVs carrying a price tag of around NT$20,000 (US$608), about NT$4-5,000 lower than 32-i

nch LCD TVs, according to media reports from China. The industry sources indicated that LG

E and the PDP TV vendors are taking advantage of tight supply of 32-inch LCD TV panels.

LGE is supplying 32-inch PDPs at an average price of US$270. The price is US$50 lower than

32-inch LCD panels, allowing PDP TVs to be marketed in China at prices lower than 32-inch L

CD TVs.

Philips withdraws from China’s PDP TV Market

Philips Electronics has basically withdrawn from China's plasma display panel (PDP) TV m

arket as local consumers prefer liquid crystal display (LCD) TV sets, a company official was

quoted as saying in a report carried by Beijing News.

Lu yao, general manager of the company's TV business department, was quoted as saying

that Philips will not go ahead with the launch of its new PDP TV set products in China, give

n that about 90 pct of the TV sets in that market are made with LCD panels.

Lu added that Philips will pay more attention to developing its own LCD TV in future.


Chapter 2Chapter 2Monthly Market UpdateMonthly Market Update

1. Large TFT-LCD PanelShipment TrendPrice Trend

2. Plasma Display PanelShipment TrendPrice Trend

3. OLEDMarket Issues

4. Component & MaterialsBLU Polarizer

5. SET Price AnalysisFlat TV SET Price Trend


Large TFT-LCD Panel Shipment by Application

May June July

LCD Monitor 15.7 16.0 15.7

NotePC 9.6 9.6 10.2

LCD TV 6.7 6.7 7.2

Others 1.1 1.0 1.0

Total 33.1 33.3 34.0

MoM 10.9% 0.8% 2.1%

(Unit: Mpcs)

The shipments of Large TFT-LCD recorded 34 million units in July

increased by 2.1% from previous month.

Still 17” showed the biggest demand in monitor panel shipments. While the

demand of 19”W and 22”W are growing in a rapid speed expanding the

share.

Wide NTPC panel demand accounted over 90% of share for the first time

ever.

32” accounted for 37.6% of total TV demand.

42” shipments exceeded 40” in July for two consecutive months.

LCD Monitor LCD Monitor LCD Monitor

NotePC NotePC NotePC

LCD TV LCD TV LCD TVOthers Others Others

MoM0

10

20

30

40

50

May June July

Mpcs

0%

2%

4%

6%

8%

10%

12%


Large TFT-LCD Panel Shipment by Maker(Unit: Mpcs)

SEC took over the first spot in volume in July after one year

followed by AUO and LPL.

In revenue base, also SEC maintain it’s top position with 22.8%

of share followed by LPL with 20.5% and AUO with 19.3%.

The top 3 accounted for 61% of market share in unit basis in

July.

May June July

Samsung Electronics 6,995 6,804 7,178

AU Optronics 6,573 6,814 7,000

LG.Philips LCD 7,053 6,756 6,671

CMO 3,743 3,857 4,144

CPT 2,355 2,416 2,375

HannStar 1,433 1,470 1,520

Sharp 1,057 1,070 1,130

BOE-OT 815 914 1,015

Innolux Display 977 950 845

SVA-NEC 860 1,010 812

TMDisplay 422 412 420

IVO 330 325 365

IPS Alpha 200 205 215

BOE-Hydis 27 104 118

Hitachi 85 80 80

EID 70 75 75

NEC 76 70 65

Total 33,071 33,332 34,028

MoM 10.9% 0.8% 2.1%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

May June July

Mpcs

SamsungElectronics

AUOptronics

LG.PhilipsLCD

CMO

CPT

HannStar

Sharp


Large TFT-LCD Panel Price Trend

(Unit: US$)

TVNoteBook Monitor

All IT panel prices are continuously increasing in August.

32” LCD TV panel price remained the same with previous month.

The price gap between 40” and 42” extended as 40” price fell heavier than 42”.

May Jun Jul Aug

H1 H2 H1 H2 H1 H2 H1

Monitor 17" 114 115 120 122 127 127 131

19"W 124 125 130 130 133 133 136

22"W 161 164 165 166 166 167 170

NoteBook 14.1"W 92 93 97 98 100 100 103

15.4"W 95 97 100 100 103 103 105

TV 32" 305 310 315 315 320 320 320

37" 440 440 440 440 440 440 440

42" 560 560 560 560 555 550 550

0

20

40

60

80

100

120

140

160

180

H1 H2 H1 H2 H1 H2 H1

May Jun Jul Aug

14.1"W

15.4"W

0

20

40

60

80

100

120

140

160

180

H1 H2 H1 H2 H1 H2 H1

May Jun Jul Aug

17"19"W22"W

0

100

200

300

400

500

600

H1 H2 H1 H2 H1 H2 H1

May Jun Jul Aug

32"37"42"


Plasma Display Panel Shipment by Size

(Unit: K pcs)

Increasing demand of PDP pull the shipment to 922 thousand units in July.

32” of LGE attracts the Chinese TV makers when it’s been difficult to

secure the 32” LCD panel due to the tight supply situation.

PDP demand in Europe looks healthy when N.A. demand shows still

weaker then expectation.

FHD shipment accounted for 13%, as Matsushita shows the most

aggressive strategy on FHD.

All of PDP makers launched 50” FHD PDP module.

30"~39" 30"~39" 30"~39"

40"~49"40"~49" 40"~49"

50"~59"

50"~59"50"~59"

60"~

60"~

60"~

MoM

0

100

200

300

400

500

600

700

800

900

1,000

May Jun July

Kpcs

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

May Jun July

30"~39" 46 67 66

40"~49" 407 492 521

50"~59" 246 270 317

60"~ 14 17 18

Total 712 846 922

MoM -15.9% 18.7% 9.0%


Plasma Display Panel Price

(Unit: US$)

May June July August

42"SD 405 395 390 380

42"HD 410 418 410 405

50"HD 685 665 640 630

Price falling but it’s been stabilized since May.

Once risen price of 42” declined again in August but in slow phase.

With the strong demand in Q3, price won’t be falling as much as previous quarter. It would rather be stabilized.

0

100

200

300

400

500

600

700

800

May June July August

42"SD

42"HD

50"HD


OLED Market Issue

• CMEL - AMOLED

AMOLED Sample Status

- Testing samples with 8 Major mobile phone makers: Passed 1st test in July and Final test in August.

- Supplying Samples: A Japanese Mobile Maker & a car navigation maker and two other mobile phone makers.

- Sample size: 2.2”, 2.4” & 2.6” QVGA

Line Status

- Vacuum Metallization line: Currently 5K of 3.5G, plan to add 10K (two times by 5K).

- LTPS line: Using CMO’s 3.5G LTPS line (5K presumed).

- Yield: Currently showing 70% of daily yield.

Product

- Initial products were 1.8”, 2.0” & 2.1” QCIF+ for sample production, however it withdrew those sizes due to lack of marketability.

- Currently it’s focusing on 2.0”.

- Planning to launch 3.9” model from 2008, the main model will be 4.2” car navigation use. (Intensively developing presently)

Price Strategy

- Willing to offer 20% lower price than competitors (Secure the cost competitiveness from the Bottom Emission Type)

- Once it realizes 80% of yield ratio, the price will get close to LCD with 110%.

- Targeting 5~10% of price premium over LCD by 2008, AMOLED would be competitive.


ITO Target Market Analysis

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2005 2006 2007

Mil.

Yen

Touch PanelOLEDTN/STN LCDPDPTFT-LCD

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2006 2007

Mil.

Yen

Touch PanelOLEDTN/STN LCDPDPTFT-LCD

Mitsui, 27.4%

SamsungCorning,18.3%

Others, 2.2%

Nikko,38.4%

Tosoh, 13.7%

ITO Target Demand Forecast by Revenue ITO Target Market Share by Maker in 2007

ITO Target market is expected 65.4 billion yen (US$ 532.82 Million) w

orth in 2007. CAGR from 2005~2007 is expected 17.9%.

TFT-LCD is taking 60% of share in total ITO target demand. TN/STN L

CD volume and share are shrinking since the demand of these device

has been declining.

Touch panel market is growing with very rapid speed, however it mai

nly concentrates on S/M size. Also the amount of ITO demand for touc

h panel is quite small, therefore the share it takes in total ITO market is

only 0.9% in 2007.

4 Major companies such as Nikko, Mitsui, Tosoh & Samsung Corning

take 97% of market share, and Samsung Corning is expanding its mar

ket share.


PDP Material Market Analysis

Core Material Key Players

Barrier Rib NEG, AGC, Daejoo, PDE, Yamamura

Dielectric Layer PDE, Daejoo, AGC, NEG, Noridake

Protective Layer LG Chem, Busan Chem, Kasei, Nichia, Nemoto

Phosphor C&Chem, MMC, Tateho

Electrode Noridake, DuPont, Toray, Taiyou, JSR, Cheil, LG RMC, Target

PDP Material Market Forecast Major PDP Makers

Market Share Status of Electrode

• PDP material market will be worth of US$ 600 million in 2007.

• Electrode Market accounts the biggest portion in PDP material market by

US$ 450 million. The core material for Electrode is AG. Although the amount

used looks apparently small, but the price is very high.

• Therefore many companies are entering the market in recent days, as well

as various new methods have been developed such as off-set in order to

reduce the material cost.

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2006 2007 2008 2009 2010

10

00

US

$

Barrier Rib Dielectric Layer Electrode MgO R,G,B

Key Players Market Share

Noritake 0%

Dupont 35%

Toray 13%

Taiyou 19%

JSR 2%

Cheil Indus. 10%

LG RMC 10%

Target 11%

Total 100%


0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Mar Apr May Jun Jul Aug

US

$

32"

37"

40"

42"

LCD TV SET Price Analysis


32" $1,025 $999 $971 $902 $891 $882

37" $1,297 $1,253 $1,192 $1,174 $1,177 $1,117

40" $1,621 $1,565 $1,500 $1,437 $1,430 $1,436

42" $1,729 $1,649 $1,566 $1,506 $1,467 $1,470

LCD TV Price Trend - Worldwide LCD TV Price Trend - US


32" $933 $916 $905 $826 $797 $777

37" $1,102 $1,066 $1,037 $1,033 $1,020 $932

40" $1,533 $1,466 $1,414 $1,344 $1,327 $1,328

42" $1,594 $1,511 $1,430 $1,364 $1,297 $1,284

Worldwide average LCD TV price in August remained almost same with July.

Price gap between 40” and 42” are narrowing.

In US market average 42” LCD TV price is cheaper then 40”.

Only 37” price fell sharply in August when other sizes remained steady.

In US market 37” price went below $1,000 in August.

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000


US$

32"

37"

40"

42"


PDP TV SET Price Analysis


42"HD $1,496 $1,462 $1,304 $1,289 $1,280 $1,286

50”HD $2,268 $2,209 $1,992 $1,957 $1,933 $1,920


42"HD $1,340 $1,311 $1,127 $1,122 $1,100 $1,099

50”HD $2,104 $2,067 $1,809 $1,796 $1,761 $1,727

PDP TV Price Trend - Worldwide PDP TV Price Trend - US

PDP TV price declined by 1.2% in August in Worldwide average.

Both Worldwide and US PDP TV price has been stabilized since May.

Average price of 42” HD PDP TV in US will go under $1,000 in September.

0

500

1,000

1,500

2,000

2,500


US$

42"HD

50"HD

0

500

1,000

1,500

2,000

2,500


US$

42"HD

50"HD


Chapter 3Chapter 3Report IntroductionReport Introduction

1. PDP Module Manufacturing Cost Analysis & Forecast2. LCD TV Market Trend & Cost Analysis


PDP Module Manufacturing Cost Analysis & Forecast

Strong Points :

1. Analysis of PDP module manufacturing cost by quarter.

2. Broken down to the detail components and parts for major sizes.

3. Enable to analysis future cost reduction trend with the forecast.

4. Tracing module price in every size.

5. Analysis of 50” FHD module cost structure.

Contents

1. Overview 1,1. EXECUTIVE SUMMARY 1.2. PDP market issues in Q2'07

2. PDP Basic Structure 2.1 Panel 2.2. Circuit 2.3 Chassis

3. PDP Cost Structure 3.1. PDP Cost Structure 3.2. Major Material & Component

4. PDP Module Price Trend 4.1. 30inch range PDP module price trend 4.2. 40inch range PDP module price trend 4.3. 50inch range PDP module price trend

4.4. 60inch range PDP module price trend

5. PDP Cost Analysis (Q1’07 ~Q2’08) 5.1. 42inch HD 5.2. 50inch HD 5.3. 50inch FHD

6. Major Component Price Status 6.1. Panel 6.2. Chassis 6.3. Logic 6.4. Driver 6.5. Circuit/IC 6.6. FILTER 6.7. POWER SUPPLY UNITS[ LIST OF FIGURE ][ LIST OF TABLE ]

13.9% 14.5% 13.4%

33.7% 35.2% 43.0%

9.9% 8.3%6.5%

42.5% 42.0% 37.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

42"HD 50"HD 50"FHD

ProcessingCost

PSU

Circuit &Driver

Panel

Cost Structure Comparison


LCD TV Market Trend and Cost Analysis

Contents

1. Introduction2. LCD TV Panel Shipment Trend Analysis by Type 2.1. LCD TV Panel Shipment Trend Analysis by Type 2.2. LCD TV Panel Shipment Trend Analysis by Company 3. LCD TV Panel Price Trends 3.1. 10", 20" range 3.2. 30", 40" range 4. LCD TV SET Shipment Trend Analysis by 4.1. LCD TV SET Shipment Trend Analysis by Type 4.2. LCD TV SET Shipment Trend Analysis by Company 5. LCD TV SET Price Trends 5.1. LCD TV SET Price Trends - 10" range 5.2. LCD TV SET Price Trends - 20" range 5.3. LCD TV SET Price Trends - 30" range 5.4. LCD TV SET Price Trends - 40" range 6. LCD TV SET Shipment Forecasts 6.1. LCD TV SET Shipment Forecasts by Type 6.2. LCD TV SET Shipment Forecasts by Region

LCD Panel Cost Structure

7. LCD TV Panel Cost Competitiveness Analysis

7.1. Introduction 7.2. 26" LCD TV PANEL 7.3. 32" LCD TV Panel 7.4. 37" LCD TV Panel 7.5. 40" LCD TV Panel 7.6. 42" LCD TV Panel 7.7. 46" LCD TV Panel

8. LCD TV SET Cost Competitiveness Analysis 8.1. Introduction 8.2. 26"WXGA LCD TV Cost Analysis 8.3. 32"WXGA LCD TV Cost Analysis 8.4. 37"WXGA LCD TV Cost Analysis 8.5. 40"WXGA LCD TV Cost Analysis 8.6. 42"WXGA LCD TV Cost Analysis 8.7. 46"WUXGA LCD TV Cost Analysis

9. Conclusion 10. Index

Strong Points :1. Enable to analyze LCD TV panel price trend.

2. Various methods of Analysis for all the details components in LCD TV.

3. Cost Forecast for one year.

4. Understand the LCD TV market trend by panel and SET shipment analysis.

5. Cost analysis of LCD panel and LCD TV SET in various sizes.

Glass

C/F

L/C

POL

Others

BLU

D-I CPCB

Labor

DEP.

O/HSG&A

LCD Panel Margin Analysis

LCD Panel Selling Price

LCD Panel Manufacturing Price


September Display Market Update

DateDate

September 27(Thur). 2007, 3:00pm(PST), 5:00pm(CST), 6:00pm(EST)

ProgramProgram

Chapter 1. Latest Industry Issues

•Issues in September

Chapter 2. Monthly Market Update

1. Large Area TFT-LCD Panel

•Shipment Trend (by August)

•Price Trend (by September)

2. Plasma Display Panel

•Shipment Trend (by August)

•Price Trend (by September)

3. OLED

•Market Issues

4. Component & Materials

•TFT-LCD use Metal Layer Market Analysis

•Touch Screen Market Analysis

5. SET Price Analysis

•Flat TV SET Price Trend

Chapter 3. New Report Introduction

Complemen

taryComp

lementary

SpeakerSpeaker

Sue Chung (Displaybank Introduction & Chapter 1): 10 minutes

Jusy Hong (Display Market Analysis): 20 minutes

Q&A: 5 minutes

Total: 35 minutes

Participate feeParticipate feeComplementary with Free Presentation Material

InquiryInquirySue Chung ([email protected])

Jusy Hong ([email protected])


Thank You~

• Presentation material will be delivered to you via e-mail after the Webinar.

• If you have any question about presentation, please contact the person below or you can visit Webinar Q&A board in our Website.

Sue Chung ([email protected])

Jusy Hong ([email protected])

Documents

All contents of this file are copyright by the author and Displaybank Display Market Update August 29. 2007 August