Flat Panel Display Price Erosion and Performance Improvements Drive Increased Demand

After struggling in 2011 with a challenging market environment due to sliding demand and price erosion, 2012 marks a year of recovery for the flat panel display (FPD) industry. According to the latest NPD DisplaySearch Quarterly Worldwide FPD Shipment and Forecast Report, worldwide FPD revenues will reach $120 billion in 2012, up 8% from $111 billion in 2011, and exceeding 2010 revenues. Among the various FPD technologies, TFT LCD accounts for the majority of revenues at $107.7 billion in 2012, up from $99.4 billion in 2011. However, AMOLED displays once again showed the strongest Y/Y growth, as manufacturing capacity and market players continue to expand. However, with the exception of LCOS (liquid crystal on silicon, a form of microdisplay) all other display technologies, including plasma and passive matrix forms of LCD and OLED, are declining in 2012. In a sharp reversal, AMEPD (active matrix electrophoretic display), which is used in monochrome e-readers, swung from strong growth in 2011 to even stronger decline in 2012, due to competition from TFT LCD-based tablet PCs.

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