Stronger Demand for TFT LCD Module as AMOLED Supply Tightens

OLED is increasingly used in smartphones and televisions, but supply is tightening due to size issues and high production costs, making TFT LCD module demand stronger for the next 3 to 5 years. An organic light-emitting diode (OLED) refers to organic LED materials which light up in the presence of electric currents. OLED uses passive-matrix (PMOLED) or active-matrix (AMOLED). Most manufacturers use AMOLED.

OLED creates the deepest black, generating higher color quality than LCD displays. However, organic elements have lower lifespans than LCDs and AMOLED is not suitable for brightly-lit environments. Apple’s high demand has an impact on AMOLED production, among other factors, which has a subsequent positive effect on TFT LCD module demand.

TFT LCD Module in Smartphones, More Cost-Efficient than AMOLED Display

Tight AMOLED Supply

AMOLED demands gets stronger, due to the pursuit for the best color in smartphones and televisions, but its supply is limited because of production factors. Apple is projected to require 100 million AMOLED panels annually for the next three years. Apple’s requirement creates high AMOLED demand in the small and medium display market. Displays are 9-inch in size, which creates a dent on AMOLED supply.

OLED is particularly harder to make than LCD modules because of the complexity in involved in creating substrate materials. OLED manufacturing is costlier than LCD modules, which may also create long-term production issues.

Stronger Demand for TFT LCD module

As AMOLED supply remains uncertain, numerous consumer product manufacturers would rather rely on TFT LCD modules. Innovations in TFT LCD can make them more competitive, especially as they cost less than OLED. Stronger TFT LCD demand will come from high-resolution smartphones and consumer electronics with short life cycles.

Though some say that the demand for TFT LCD is likely to contract, they are not considering the increasing use of OLED which already puts greater pressure on its suppliers. Without reducing OLED production costs, they might experience bottleneck problems in the future. Uncertain of OLED supply, some manufacturers of automotive, smartphone, and medical monitors would still prefer TFT LCD over OLED.

While OLED promises deeper colors, TFT LCD module can offer a more reliable, cost-efficient supply. As a result, companies that do not emphasize the demand for high color saturation would opt for TFT LCD. For the next 3 to 5 years, unless OLED vastly improves manufacturing costs and speed, TFT LCD makers are poised for higher demand.

Sources:

“Apple and Samsung reinforce ties over iPhone’s OLED display,” Paul Buckley, EE Times Europe, April 18, 2016

“Strong Demand to Push Prices of LCD Panels for Smartphones, Says TrendForce,” CTimes, October 24, 2016