Taipei, Wednesday, May 27, 2015 22:00 (GMT+8)
mostly cloudy
Taipei
28°C
Digitimes Insight: Earthquake may impact entry-level OLED applications
Jessie Lin, DIGITIMES Research, Taipei [Monday 28 March 2011]

The massive earthquake and tsunami that struck the northeast coast of Japan have not had significant impact on OLED material supply, but may affect entry-level OLED panel applications, according to Digitimes Research.

Japan-based players have been developing OLED materials for a long time with Sumitomo Chemical and Showa Denko in the polymer materials segment, Idemitsu Kosan and Mitsui Chemicals in the small molecule segment and TDK Micro Device in the passive matrix OLED (PMOLED) panel segment.

TDK Micro Device's facilities located in Ibaraki Prefecture saw partial equipment damage due to the tremor. But the impact on the PMOLED market may be minimal, as Taiwan-based RiTdisplay is the leading PMOLED supplier worldwide.

Although the quake has had limited impact on the supply of polymer materials from Sumitomo, the company's R&D schedule is expected to be affected. Sumitomo has a total of nine plants in Japan, of which the Misawa and Chiba plants are closer to the disaster areas. Although no damage to building and equipment has been reported, production is expected to be affected by the rolling black-outs.

Sumitomo mainly produces OLED polymer materials at its Osaka plant, which is away from the disaster areas, and supply of OLED materials will be little affected.

Fellow polymer material supplier Showa has been hit more by the quake, and shipments to its clients may be affected.

Idemitsu is seeing more impacts from the transportation and power supply issues, while Mitsui has not been significantly affected by the earthquake. Although more players are adopting small molecule in the current OLED industry, the earthquake will only have limited effects on the supply, as there are other suppliers, such as US-based Universal Display Corporation (UDC).

Damage to Japan-based OLED suppliers

Supplier

Technology/production

Impact on production

Impact on industry

Panel

TDK Micro Device

PM OLED panel

Partial damage to equipment at Ibaraki Prefecture; production suspended

Production mainly for PMOLED; only affects to entry-level applications

Polymer Material

Sumitomo

Polymer materials for OLED, mainly for lighting and display application;
acquisition of UK-based fellow supplier CDT in 2007

Osaka production plant away from the disaster area;
partial damage to plant at Tsukuba research center in Ibaraki Prefecture

Limited impact on material supply;
to affect its own OLED R&D schedule

Showa

Polymer materials for OLED;
In addition to display application; cross-licensing with US-based UDC for white OLED lighting technology

Chiba plant suspended from March 14-16, resumed production on March 17; to prioritize production for basic chemical products

Shipments to polymer material users to be affected; but small molecule material is more popular in the industry

Small molecule

Idemitsu

Small molecule OLED materials;
cooperation with Sony in OLED display

No equipment damage at Chiba plant despite level-5 quake; to be affected by transportation and power supply issues

Company is estimating its material inventory, and may suspend production if material inventory is insufficient

Mitsui

Small molecule OLED materials;
cooperation with Idemitsu for OLED material development

Osaka plant is away from disaster areas and not affected

none

Source: Companies, compiled by Digitimes, March 2011

Earthquake impact on TDK's OLED subsidiaries

Plant

Location

Production

Situation as of March 15

Narita

TDK

Narita, Chiba Prefecture

Metal magnet

Ready to restart production, but may be affected by rolling black-outs

Kofu

TDK

Minami-Alps, Yamanashi Prefecture

Thin film and silicon component

Ready to restart production, but may be affected by rolling black-outs

Technical Center

TDK

Ichikawa, Chiba Prefecture

Component development

Operation continues, but may be affected by rolling black-outs

Media Tech

Subsidiary

Chuo, Yamanashi Prefecture

Magnet tape for data backup, video for TV broadcasting company

Ready to restart production, but may be affected by rolling black-outs

TDK Micro

Subsidiary

Kitaibarai, Ibaraki Prefecture

OLED

Suspended for damage inspection

Source: Company, compiled by Digitimes, March 2011

Topics: Page 2

Realtime news
  • MediaTek to expand workforce in 2015

    Bits + chips | 1h 38min ago

  • UMC holds technology forum in Japan

    Bits + chips | 1h 57min ago

  • Sharp to launch smartphones in Indonesia, says report

    Mobile + telecom | 1h 59min ago

  • Semi-equipment component maker Calitech applies for OTC listing

    Before Going to Press | 7min ago

  • Sony launches flagship Xperia Z3+ smartphone

    Before Going to Press | 8min ago

  • Panasonic to add BLU production lines at plants in Mexico and Brazil

    Before Going to Press | 9min ago

  • HTC to block media from attending shareholders meeting

    Before Going to Press | 10min ago

  • Taiwan becomes major revenue contributor to Google

    Before Going to Press | 12min ago

  • GIS expects 2Q15 revenues to fall 15-20% sequentially

    Before Going to Press | 2h 11min ago

  • CSOT starts producing 55-inch Full HD TV panels at 2nd 8.5G factory

    Before Going to Press | 2h 14min ago

  • LCD monitor panel prices in May fall sequentially, says WitsView

    Before Going to Press | 2h 16min ago

  • GIS to list on TSE

    Before Going to Press | 2h 22min ago

  • Solar cell maker TSEC to be listed on TSE in 3Q15

    Before Going to Press | 2h 23min ago

Pause
 | 
View more

Taiwan server shipment forecast and industry analysis, 2015

RESEARCH EXTRAS | Apr 10, 15:57

The server market did not perform well in 2014 though rising demand from Internet data centers (IDCs) and China brands helped global shipments (measured by motherboards) grow 7.1% to 10.4 million. Using this as the base for growth, in 2015 the market is expected...

How China is shaping the LTE/TD-LTE market in 2015

CHINA SMARTPHONE | Apr 9, 15:42

Digitimes Research estimates that the global LTE market doubled in size to 445 million users in 2014 and we further forecast that annual growth in the number of LTE users will remain above 70% between 2015-2016, with the overall market reaching 1.466 billion...

Taiwan LCD TVs – 1Q 2015

TAIWAN DISPLAY SYSTEM | May 22, 15:51

Taiwan's LCD TV makers saw strong seasonal impacts in the first quarter of 2015. Shipments to North America saw a particularly sharp decline as a result of reduced procurement from Mexico and major client Toshiba quitting the North America market.

Taiwan handsets – 1Q 2015

TAIWAN MOBILE DEVICE | May 15, 15:58

Most of Taiwan's handset makers felt strong seasonal effects in the first quarter. Foxconn suffered particularly as a result of drastic drops in orders from Sony Mobile and Microsoft Mobile.

China smartphone market and industry – 1Q 2015

CHINA SMARTPHONE | May 13, 10:56

According to Digitimes Research's survey of the Mainland China smartphone supply chain, as well as other relative vendors, increased demand for Apple's new device models, Mainland China's high-end smartphone models experienced lackluster sales in the first quarter...

Innodisk at Computex Taipei 2015
Trends and forecasts for the China FPD industry, 2014-2017
Demand and supply trends in the global sapphire industry, 2014-2015
  • 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.