MCG Reports

BACKGROUND

Viewing angle enhancement films will grow to $3.1 B by 2009.

Biaxial retarders and coated LC films will displace Fuji Film’s Wide View. The trend is driven by expansion in LCD-TV.

LCD front-of-screen performance has greatly improved. The stunning visual impression, combined with rapid cost reductions, has resulted in LCD emerging as a very strong contender with plasma for 40"- class flat panel TV’s. Advanced optical technologies and large scale fabs appear to have already won the battle for smaller FPD sizes.

Behind the optical improvement are still-evolving LCD modes such as in-plane-switching (IPS) and multidomain-vertical-alignment (MVA). These new modes require alternative viewing angle compensation films to achieve the +170o viewing angles the market expects in large entertainment displays. Demand for new films has supplied strong growth for film suppliers including Zeon Chemical, JSR, and Konica-Minolta and for liquid crystal coating companies such as Nippon Oil, LG Chemicals and Fuji Film, which is promoting OCB mode. As yet there is no dominant solution, and market needs such as tight color fidelity and high-speed video response remain areas for further improvement.

The compensation film market is forecast to grow revenues at 15.5% per year: from $2.1 billion in 2005 to $3.1 billion by 2009. The area volume for these new films is forecast to grow at 36% per year. All of the revenue growth, and most of the area growth is expected to come from the newer large screen modes as LCD makers gear up to begin the displacement of the CRT and to fight plasma and projection alternatives for large digital TV share.

This study is based on an industry survey of film manufacturers, polarizer/retarder film stack manufacturers, and LCD manufacturers in Japan, Taiwan and Korea. Some LCD branders in the US and Japan were also included for their perspective. The survey specifically addresses:

• product priorities
• new product adoption requirements
• design support requirements
• qualification cycle
• pricing expectations

Compensation solutions are discussed for monitor and TV applications for both IPS and MVA mode. There is also a discussion of OCB, a high-speed LCD mode.

There is a business discussion of:

• film supply chain
• specific supplier-customer relationships
• competitor profiles and reputation

The report concludes with suggested strategy for entry to the compensation film market. The 90 page report is supplemented by a 20 page product information appendix.

WHO SHOULD BUY AND WHY

The report is a comprehensive tool for marketing and supply chain professionals to understand the timing and scope of emerging opportunities and develop their company’s response to those opportunities:

• Television Branders – Understand the alternatives offered by different TFT panel makers, and the expected trends in component prices for IPS and MVA technologies
• LCD Panel Makers – Understand price and performance trends through 2009 for compensation films, a key driver of polarizer stack prices.
• Optical Film Makers – Anticipate the emerging film trends and position for success with growth opportunities in compensation films. Understand key technology, performance and cost trends. Understand the value chain and panel maker-polarizer maker relationships.

SCOPE AND QUESTIONS ADDRESSED

The study covers sales of compensation films for large area LCD displays for the period 2005-2009. Films include:

• uniaxial and biaxial oriented films
• coated liquid crystal (LC) films
• modified TAC films

The study also provides clear feedback from the LCD industry about the desired improvements and product requirements, including design-in support requirements. The study addresses questions such as:

• How will prices trend over time on films for VA, IPS and TN?
• How fast will market share shift to new competitors and why?
• What compensation film configurations are being used in each market segment?
• What compensation stacks are being used by each LC technology?
• How will optical film configurations shift over time?
• What key factors will affect the success of new competitive entrants?

Product Scope. The following optical films are included:

• Cyclic olefin polymer (COP) and Cyclic olefin copolymer (COC)
• Reactive mesogen (LC) coated films
• Cellulose acetate propionate (a modified TAC)
• Composite biaxial compensation film with an c plate base plus a coated or transferred layer (X-plate)

Film stacks composed of uniaxial oriented a and c plate films and their replacement by more sophisticated (but fewer) biaxial films are discussed.

Film input demand is discussed in the context of stack lamination yield, cutting losses, and inventory effects.

Market Scope. Global film sales and film use configurations now and in 2009 by:

• TVs and large public displays
• Monitors
• Notebooks
• Handhelds
• Industrial displays

CONTENTS

The 110-page study consists of 90 pages of analysis including text, color graphs and tables, plus 20 pages of product specifications, and includes:

• Compensation methods for TN, MVA, IPS and OCB modes.
• Forecast through 2009 for a plate, c plate, biaxial, modified TAC, LC coated films
• Forecast of film use configurations by market segment (TV, monitor, laptops, other TN)
• Forecast pricing and market shares for each film type
• Detailed film customer survey feedback about requirements for compensation films, present usage, needed improvements, and other issues that customers want to see addressed by new suppliers

To view the table of contents and report sample pages: mcgweb.com/reports/ret2006toc.htm

METHODOLOGY

The MCG study is based on a combination of sources. Information was gathered via an in-depth survey of polarizer manufacturers and compensation film makers as well as LCD panel makers and LCD branders regarding product performance requirements and desired improvements. Information from other industry sources, current literature, and interviews with industry experts was also incorporated.

FORMAT

PDF file with site license when purchased.

SUPPORT FOR PURCHASERS OF REPORT

Available from the study’s principal researcher, Carl Cobb (contact info shown below).

ABOUT THE AUTHORS

The report been developed with extensive technical and analytical support. Carl Cobb was the principal researcher and analyst. Steve Marsland was a supporting author and analyst in the study and conducted a number of interviews in Japanese. Charles McLaughlin acted as senior author and final editor.

For more information contact: Carl Cobb carlcobb@mcgweb.com +1-650-366-5999

SUBSCRIPTION

ORDER INFORMATION

Please use this PDF order form and fax it back to us as 650-319-1805 or contact Adrienne Hefter, info@mcgweb.com, telephone 650 323 1179. MCG office hours are 9-12 and 1-5 PST.