Taipei, Wednesday, July 30, 2014 11:01 (GMT+8)
partly cloudy
Taipei
32°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
  • Sales for mini versions of flagship smartphones short of expectations

    Mobile + telecom | 12min ago

  • Phison reports strong earnings for 1H14

    Bits + chips - Newswatch | Jul 29, 20:00

  • Hermes Microvision to see revenues stay flat in 3Q14

    Before Going to Press | Jul 29, 20:49

  • Delta Electronics 2Q14 gross margin, net profit hit records

    Before Going to Press | Jul 29, 20:48

  • Huawei ships 34 million smartphones in 1H14

    Before Going to Press | Jul 29, 20:36

  • Taiwan market: BenQ 1H14 LCD TV sales up 20% due to low-blue-light models

    Before Going to Press | Jul 29, 20:35

  • Commentary: China antitrust probe could affect Qualcomm performance

    Before Going to Press | Jul 29, 20:34

  • Demand for tablet touch panels decreasing, say Taiwan makers

    Before Going to Press | Jul 29, 20:12

  • Adlink develops 3D intelligent vision-aided positioning system in cooperation with ITRI

    Before Going to Press | Jul 29, 19:58

  • Digitimes Research: Smartphone AP shipments grow over 13% sequentially in China in 2Q14

    Before Going to Press | Jul 29, 19:41

  • China market: Colorful Technology poses competitive threat to MSI, ASRock

    Before Going to Press | Jul 29, 19:40

  • UMC to post single-digit revenue growth in 3Q14

    Before Going to Press | Jul 29, 19:39

  • Taiwan notebook ODMs to benefit from HP, Dell sales in North America

    Before Going to Press | Jul 29, 19:39

  • Huawei Device sees high growth in 1H14 handset shipments

    Before Going to Press | Jul 29, 19:38

  • Digitimes Research: Taiwan digital camera shipments in 2Q14 up 43.3% sequentially

    Before Going to Press | Jul 29, 19:36

  • Global market share for iPad may slip to below 25% in 2H14

    Before Going to Press | Jul 29, 19:35

  • Acer tops US LCD monitor retail market in 1H14

    Before Going to Press | Jul 29, 19:34

  • Huawei Device to launch Ascend Mate 3 4G smartphone, says report

    Before Going to Press | Jul 29, 19:33

Pause
 | 
View more

Analysis of China's revised domestic semiconductor industry goals

RESEARCH EXTRAS | Jul 16, 18:09

Facing a funding shortage for local IC manufacturers, the China State Council in June 2014 published guidelines to strengthen government support for China's semiconductor industry, while stating the short-, mid-, and long-term goals for the related industry supply...

The transition to 4k TV - UHD TV market forecast, 2014-2017

RESEARCH EXTRAS | Jun 26, 13:59

Ultra HD TV vendors are facing challenges due to an overall slowdown in the TV industry and are concerned whether relative supply chains can provide compatible Ultra HD content and services. However, trends show that content makers as well as panel and chip makers...

Taiwan handsets – 2Q 2014

TAIWAN ICT | Jul 30, 09:17

HTC's launch of its new smartphone models shot up both its own shipments and the overall shipments from Taiwan's handset sector in the second quarter. Although own-brand shipments were strong, ODM shipments were sluggish.

Taiwan digital cameras – 2Q 2014

TAIWAN ICT | Jul 30, 09:15

Taiwan makers saw a rare rise in their DSC shipments in the second quarter of 2014, thanks to strong orders from clients who were launching new models for the spring season. While their shipments stand little chance of returning to levels seen in the pre-smartphone...

Taiwan notebooks – 2Q 2014

TAIWAN ICT | Jul 23, 12:53

Taiwan's notebook makers saw an unexpected sequential rise in shipments in the second quarter after the end of Microsoft's support for Windows XP generated a wave of replacement demand. Compared to the same period of last year, their shipments still dropped....

Analysis of China revised domestic semiconductor industry goals
Greater China touch panel shipment forecast through 2015
  • 2014 global high brightness LED market, trends and shipment forecast

    For the global LED lighting market, the market size will reach US$25.82 billion in 2014 or a market penetration rate of 23.4%. This is attributable to exponential shipment growth for light bulbs, tubes, and directional lamps.

  • Greater China touch panel shipment forecast through 2015

    This Special Report provides forecasts through 2015 for Greater China touch panel shipments with breakdowns based on technology (glass, film, resistive), application (smartphone, NB and tablet) and by firm.

  • 2014 global tablet demand forecast

    This report analyzes the main players, their strategies and shipments forecasts for 2014, as well as other factors contributing to either growth or decline in various segments within the tablet market, with a particular focus on Apple, Google, Samsung, and Microsoft, along with whitebox vendors.