Taipei, Friday, September 4, 2015 05:36 (GMT+8)
partly cloudy
Taipei
27°C
Digitimes Insight: Earthquake impacts two major Japan LCD stepper makers
Jessie Lin, DIGITIMES Research, Taipei [Friday 18 March 2011]

Looking at TFT LCD equipment supply, although South Korea has improved its own equipment production capability in recent years, it still relies heavily on Japan for PECVD, sputter units and steppers.

Out of all the TFT LCD array equipment companies in Japan, Nikon and Canon, which dominate the stepper market, were particularly hit hard by the March 11 earthquake, and could send ripple through out the global TFT LCD equipment supply chain. Japan is the largest producer of LCD-use steppers.

Nikon represents 50-60% of the worldwide stepper market, and Canon about 40-50%. Nikon and Canon shipped 45 and 38 developers in 2009. The two companies have virtually monopolized the global market.

Nikon's and Canon's LCD stepper plants are located in areas stricken by the earthquake. The facilities have sustained structural damage and are experiencing power outage that has halted production operations. The two companies still have no precise schedules on when production can resume.

Nikon has subsidiaries across Japan. The subsidiaries affected by the earthquake are Sendai Nikon, Miyagi Nikon Precision, Tochigi Nikon and Tochigi Nikon Precision. Some buildings and equipment have sustained damage. Miyagi Nikon Precision and Tochigi Nikon Precision manufacture semiconductor and LCD stepper components.

Nikon is currently the leader in small- to medium-size LCD steppers. Its subsidiary Miyagi Nikon Precision supplies small-to-medium-size TFT LCD steppers for smartphones. It has previously planned to build a new facility nearby and commence production in July. However, due to the earthquake, the expansion plan has been moved back, and will likely impact the schedules of Japan and South Korea panel makers for expanding smartphone-use panel output.

Nikon shipped 62 LCD-use steppers in 2010, up from 45 units in 2009. In 2010, shipments of equipment for 7G or above totaled 33 units, about 53.2% of total shipments. The company is projected to grab a 60% share of the global developer market in 2012.

Canon also has production plants throughout Japan. The locations affected by the earthquake are the offices in Utsunomiya, Ami and Toride. Schedules for resuming operations are undetermined due to power outage, building damage and production shutdown.

The Utsunomiya office is responsible for the research and development of LCD steppers and houses a research center. The Ami office, which mainly produces steppers, will affect production and shipments. Toride mostly manufactures imaging business machines.

With LCD panel makers resuming capacity investments in the second half of 2009, Canon saw its stepper shipments rise from 38 units in 2009 to 56 unit in 2010. The company's target set prior to the earthquake was 38 units in 2011.

In addition, China now houses a large percentage of the world's new TFT LCD production lines. With many facilities based on 7G or above technologies scheduled to begin volume production in the second half of 2011 to 2012, Digitimes Research believes that TFT LCD companies that need steppers will likely see delays.

Major Japan LCD array equipment makers and South Korea's own production capability

Japan equipment makers

South Korea produces more than 50% on its own demand

South Korea produces less than 50% on its own demand

ULVAC

PECVD, sputter unit

Nikon

Stepper

Canon

Sputter unit, stepper unit

Tokyo Electron (TEL)

Developer

Dry-etching unit, photoresist coater,

DNS

Wet-etching unit, cleaner, stripping unit, developer

Photoresist coater, developer

Shibaura Mechatonics

Cleaner, developer, stripping unit

None

Source: Companies, compiled by Digitimes, March 2011

Damage to Nikon and Canon production plants

Plant locations

Earthquake scale

Damage

Nikon

Miyagi and Tochigi prefectures

5-6

Structural and equipment damage; schedules for resuming production undetermined

Canon

Miyagi and Ibaraki prefectures

6

Stepper plants shut down on March 14; schedules for resuming production undetermined; structural and equipment damage; affected by power outages

Source: Companies, compiled by Digitimes, March 2011

Source: Digitimes Research, March 2011

Source: Digitimes Research, March 2011

Source: Digitimes Research, March 2011

Topics: Page 2

Realtime news
  • Giga Solar Materials expects return of 10-12% on investment in PV station in Japan

    Before Going to Press | 7h 32min ago

  • Costs for new OLED lighting modules from Mitsubishi and Pioneer to drop 60%

    Before Going to Press | 7h 35min ago

  • Major Taiwan-based fabless IC firms likely to suffer revenue decreases in 2015

    Before Going to Press | 7h 36min ago

  • Taiwan IC designers expect orders to pick up in 1Q16

    Before Going to Press | 7h 36min ago

  • TPK revenues up in August

    Before Going to Press | 7h 37min ago

  • HTC sees decreased August revenues

    Before Going to Press | 7h 37min ago

  • Merger with Asustek unlikely, says Acer CEO

    Before Going to Press | 7h 39min ago

  • Laser to become next-generation lighting source, says 2014 Nobel laureate

    Before Going to Press | 7h 41min ago

  • Foxconn Interconnect reportedly to acquire equipment from Avago

    Before Going to Press | 7h 43min ago

  • Green Energy Technology sees increased August revenues

    Before Going to Press | 7h 43min ago

  • Taiwan market: BenQ launches 4G-connected action camera

    Before Going to Press | 7h 44min ago

  • LG expected to release 8K TVs in 1H16

    Before Going to Press | 7h 45min ago

  • Handset vendors decreasing touch panel orders for 4Q15

    Before Going to Press | 7h 45min ago

  • Aurora expects revenues of NT$300 million from 3D business in 2015

    Before Going to Press | 7h 46min ago

  • Sunrex Technology to buy back 1.65% stake

    Before Going to Press | 7h 47min ago

  • 10-20MWp PV systems damaged by Typhoon in Taiwan

    Before Going to Press | 7h 48min ago

Pause
 | 
View more

Display panels for wearable devices: Market overview and forecast through 2017

RESEARCH EXTRAS | Jul 23, 12:15

The wearables market is a growing focal point for many vendors and players in the display panel supply chain. This Digitimes Research Special Report looks at developments in panel applications in the wearable industry, with a specific focus on panel makers in...

Developments in the UV LED industry

RESEARCH EXTRAS | Jul 16, 18:28

As white LED applications are becoming more widely accepted and common in the market and China makers push more price-competitive solutions, the 2015 global high-brightness LED output value is expected to only grow 7.5% on year. It is not surprising that in a...

Taiwan LCD TVs – 2Q 2015

TAIWAN DISPLAY SYSTEM | Aug 21, 14:47

Taiwan-based LCD TV makers are seeing improving shipments. Among them, Foxconn Electronics (Hon Hai Precision Industry) will have the strongest shipment growth in the second half due to procurement orders from Mexico.

Global tablet market – 2Q 2015

GLOBAL TABLET | Aug 21, 12:11

Digitimes Research saw global tablet shipments fall to 45.76 million units in second-quarter 2015, showing a 10% decrease on quarter and representing more than a 15% decrease on year.

China smartphone market and industry – 2Q 2015

CHINA SMARTPHONE | Aug 18, 15:33

Smartphone sales in China no longer show any significant momentum for growth as the fast maturing market now increasingly relies on replacement demand from existing users.

Developments in the UV LED industry
Taiwan server shipment forecast and industry analysis, 2015
2015 global notebook demand forecast
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • 2015 global tablet demand forecast

    This Digitimes Research Special Report provides a 2015 forecast for the global tablet market and analyzes the strategies of key market players such as Google, Apple, Intel, and Microsoft.

  • 2015 China smartphone panel trend forecast

    This Digitimes Research Special Report analyzes the strategies of key China-based major panel makers BOE, Tianma and IVO for attacking the different market segments through technology and pricing, and their relationship to local vendors Huawei, Lenovo, ZTE, Xiaomi and Coolpad.