Taipei, Friday, October 31, 2014 13:00 (GMT+8)
partly cloudy
Taipei
30°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
  • Walton, Powertech to see slight drops in 4Q14 revenues

    Bits + chips | 27min ago

  • Contrel invests in PSS production using soft mask photolithography

    LED | 48min ago

  • Taiwan market: BenQ aims to sell 20,000 curved Full HD WCG TVs in 2015; Ultra HD TV penetration to reach 5%

    Displays | 57min ago

  • LCD TV sales expected to reach 5 million during holiday period in North America

    Displays | 2h 4min ago

  • Macronix posts net losses of NT$1.1 billion for 3Q14

    Bits + chips | 2h 25min ago

  • MLS, Unity Opto expand LED lighting capacities

    LED | 2h 34min ago

  • LG Display develops 5.3-inch Full HD LCD panel for smartphones with 0.7mm bezel

    Displays | Oct 30, 21:22

  • ASE nets NT$1.98 per share for January-September

    Bits + chips | Oct 30, 21:07

  • Taiwan ODMs, component makers eye orders from China mid-range, high-end smartphone vendors

    Mobile + telecom | Oct 30, 20:04

  • Hermes Microvision posts January-September net EPS of NT$25.13

    Before Going to Press | Oct 30, 20:59

  • Standards committees and industry consortia working through number of video standards to support Ultra HD

    Before Going to Press | Oct 30, 20:55

  • TDDI may push down touch IC, LCD driver IC prices in 2015

    Before Going to Press | Oct 30, 20:00

  • Innolux expects global Ultra HD TV shipments to reach 30 million in 2015

    Before Going to Press | Oct 30, 19:42

  • Innolux capex to reach NT$20 billion in 2014

    Before Going to Press | Oct 30, 19:31

  • Innolux will continue to invest in a-Si and IGZO panel technologies, says chairman

    Before Going to Press | Oct 30, 19:30

  • Digitimes Research: Global top-6 notebook vendors to share 81.7% of 2015 global shipments

    Before Going to Press | Oct 30, 19:13

  • Grand finals of MSI Beat IT 2014 Global to be held in Taipei

    Before Going to Press | Oct 30, 19:12

Pause
 | 
View more

Trends and forecasts for the China FPD industry, 2014-2017

CHINA FPD | Oct 6, 12:29

With China being the world's IT production center and a country with some of the strongest consumer demand, along with benefits on custom tax, funding, loans, and subsidies provided by the government, China's FPD industry continues to show strong growth. Local...

Taiwan servers and the global server market, 2014

RESEARCH EXTRAS | Oct 3, 12:19

Taiwan makers have successfully entered the supply chain of the Internet data center (IDC) industry and may contribute over 90% of the global server shipments in 2014. Combined revenues from related product lines such as motherboards, back-end assembly, storage...

Taiwan digital cameras – 3Q 2014

TAIWAN ICT | Oct 30, 15:40

The global digital still camera (DSC) market continued to decline in the third quarter of 2014, a trend reflected by Taiwan makers' significant on-year shipment drops. Worldwide DSC shipments are expected to drop almost 30% in 2014.

Taiwan notebooks – 3Q 2014

TAIWAN ICT | Oct 23, 11:55

US notebook brand vendors' stronger-than-expected sales fueled their Taiwan-based ODM partners' shipment growth in the third quarter. In general, the enterprise segment saw better shipment momentum than the consumer segment, as Microsoft's termination of support...

Taiwan LCD monitors – 2Q 2014

TAIWAN FPD | Aug 25, 14:48

Taiwan's monitor shipments grew 10% in the second quarter compared to a low first-quarter base. With panel makers reducing their supply of monitor applications and monitor vendors reluctant to increase their shipments, Taiwan's makers will only see a single-digit...

DIGITIMES Research Tracker Services
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.