3. Compensation Film - Displaybank

Polarizer & Optical Films 

Industry Trend Analysis 

Chapter 1. Polarizer Market 

Polarizer Market/Capacity/Demand&Supply 

Price/Polarizer Maker Trends 

Chapter 2. Market Analysis of 6 Types for Optical Films 

PVA Film/TAC Film / 

Compensation Films / Surface Treatment/ 

Protection Film / Release Film 

Jun.2009 

Displaybank’s Component Division 

TEL : +82-31-704-7188 | FAX : +82-31-704-7187 

URL : www.displaybank.com

Report Tile: Polarizer & Optical Films 

Date: 2009.06 

Polarizer & Optical Films 

Industry Trend Analysis 

Jun.2009 

Displaybank Co. Ltd. 

8F 810, Yatap Leaders Bldg. 342-1 1 Yatap-dong, Bundangp-gu, gu, Seongnam-si, 

Gyeonggi-do, Korea (463-828) 

Tel: (82) 31-704 

704-7188, 7188, Fax: (82) 32-704 

704-71877187 

E-mail: 

irene@displaybank.com 

Copyright C Displaybank Co., Ltd. All rights reserved (2)

Copyright 


Date: 2009.06 

Copyright © 2009 Displaybank Co., Ltd. 

All rights reserved. 

No material contained in this report may be reproduced in whole or in part without the express written permission of Displaybank Co., Ltd. 

This report is intended for the sole and exclusive use of the original purchaser and may not be distributed or transferred in any form to any 

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Displaybank Co., Ltd. provides the information in this report for informational purposes only and does not grant any express or implied 

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otherwise, does not necessarily constitute or imply its endorsement, recommendation, or favoring by Displaybank Co., Ltd. Neither 

Displaybank nor any of its affiliates shall be liable to you or any third party in damages of whatever kind that may result from any reliance on 

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this report shall be at your sole risk and that no representations have been made to you that are inconsistent with the foregoing. 


Contents 


Date: 2009.06 

Chapter 1. Polarizer Market and Industry 

1. Overview 

2. Polarizer Market Forecast 

3. Mid to Long-term Polarizer Demand Forecast 

4. Short-term Polarizer Demand Forecast 

5. Polarizer Capacity Analysis 

6. Major Polarizer Maker Trend (Sales and Shipment) 

7. Polarizer Supply Chain Status 

8. Polarizer Supply & Demand and Price Trend 

Chapter 2. Polarizer Optical Film Market and Industry 

1. PVA Film 

2. PVA Protection Film 

3. Compensation Film 

4. Anti-Reflective Film 

5. PET Protection Film and Release Film 


Contents 



Date: 2009.06 

1. Overview 

1.1. Research Purpose 

1.2. Research Method 

1.3. Research Range and Definition 


2.1. Overall Market(2008~2013) 

2.2. Market Forecast by Display Type 

2.3. Market Forecast by Application 

2.4. Market Forecast by Region 

3. Mid to Long-term Polarizer Demand 

Forecast 

3.1. Overall Demand Forecast (2008~2013) 

3.2. Demand Forecast by Display Type 

3.3. Demand Forecast by Application 

3.4. Demand Forecast by Drive Mode 

3.5. Market Forecast by Region 


4.1. Overall Demand Forecast (1Q'08~4Q'09) 

4.2. Demand Forecast by Display Type 

4.3. Demand Forecast by Application 


5.1. Mid-term Design Forecast (2005~2010) 

5.2. Short-term Supply Capacity Analysis (1Q'08~4Q'09) 

6. Major Polarizer Maker Trend (Sales and 

Shipment) 

6.1. Nitto Denko 

6.2. Sumitomo 

6.3. LG Chem 

6.4. Optimax 

6.5. ACE Digitech 

6.6. Sanritz 

6.7. Daxon 

6.8. Sales Result by Polarizer Maker 

6.9. Sales Growth by Polarizer Maker 

6.10. Sales Market Share by Polarizer Maker 

6.11. Shipment Result by Polarizer Maker 


7.1. Note PC 

7.2. Monitor 

7.3. TV 


8.1. Polarizer Supply and Demand Analysis 

8.2. Polarizer Price Trend 

8.3. Polarizer Cost Trend 


Contents 

Chapter 2. Polarizer Optical Film Market and Industry 


Date: 2009.06 


1.1. Overview 

1.2. PVA Film Market Forecast 

1.3. PVA Film Production Capacity 

1.4. PVA Film Supply & Demand Analysis 

1.5. Supply Chain Status 

1.6. Price Trend 


2.1. Overview 

2.2 PVA Protection Film Market Forecast 

2.3. PVA Protection Film Production Capacit 

y 

2.4. TAC Film Supply & Demand Analysis 




3.1. Overview 

3.2. Compensation Film Market Forecast 

3.3. Compensation Film Maker Trend 

3.4. Price Trend 


4.1. Overview 

4.2. Anti-Reflective Film Market Forecast 

4.3. Anti-Reflective Film Maker Trend 



5.1. Overview 

5.2. Protection Film and Release Film Market Forecast 

5.3. Protection Film and Release Film Production Capac 

ty 






Date: 2009.06 

1. Overview 





6. Major Polarizer Maker Trend (Sales and 

Shipment) 




1. Overview 

1.1. Research Objectives 


Date: 2009.06 

Polarizer is a key part in LCD panel and its market shows a rapid growth as a large-size LCD panel market rapidly grows. 

Polarizer makers competed against each other and increased their production capacity in order to correspond to the increasing 

LCD panel demand. Moreover, new polarizer makers emerged in Korean and Taiwan to make the competition in the polarizer 

market more severe. Accordingly, polarizer price has been declining average of 30 to 50% annually. Films like polarizer are 

designed by application sizes that their production cost are largely reduced upon the production volume and such characteristic 

can possibly have an effect on the polarizer price. The issue here is that there is a limit to reduce price by improving a process 

yield of the polarizer. Moreover, prices of films that compose the polarizer rarely changed for the past three years. 

In other words, the polarizer makers’ operating profit remained the same due to four disheartening factors including large-scale 

investment, rapid price decline, pressure of raw material price, and demand market shrinkage due to an economic slump. Last Q4 

especially showed a vicious circle of global economic recession, demand market shrinkage, panel makers’ production cut, and 

shipment decrease. Such phenomenon hurt Taiwanese panel makers badly. This report targets to analyze effects of Taiwanese 

panel makers’ slowed result and Korean panel makers’ good fights on the polarizer market. 

Moreover, polarizer plays a key role in adjusting LCD display product requirement (contrast ratio, brightness, and etc.) since it 

directly adjusts light source. In order to regulate such optical requirements, applying high specifications on various sub-film used 

in polarizer. Along with a hard fighting of the panel market, the polarizer market also suffers double from a price pressure by price 

decline and insecure sub-film supply factor of panel makers. Also, full HD market expands to require various performances from 

the related polarizer. Hence, the future polarizer market is expected to undergo lots of change. 

In a situation like this, Displaybank collected and analyzed market forecast, production line status by maker, supply chain, and 

price trend of the polarizer from 2008 to 2013. Displaybank attempts to provide an insight in a correspondence of the polarizer 

market after 2008 through a market industry analysis of key sub-films including TAC film, PVA film, PET protection film, release 

film, anti-reflective film, and compensation film. 


1. Overview 

1.2. Research Methodology 


Date: 2009.06 

The data from this report was collected and analyzed by various methods. The most important and basic data from a supplier’s 

perspective was collected through Q&A with major suppliers. Displaybank collects information at all times through various 

conference data, display industry related exhibition data, corporation result data and analysis data, press release data, and 

internet search. Q&A with suppliers surely is am important foundation data as well. 

Displaybank collects information by various methods mentioned above and estimates supply & demand through the information. It 

forecasts future supply and demand to present price trend and cost analysis accordingly. 

Displaybank is a market research company specialized in display and possesses broad research range from materials and 

equipments to finished products including LCD panel, PDP panel, OLED panel, parts, equipment, LCD TV, PDP TV, CRT TV, 

monitor, and notebook PC. It secures about 20 kinds of periodical reports regarding display related industry. Displaybank 

analyzed and forecasts market more organically and accurately through professional data accumulated in various fields. 

Moreover, it organized and holds international conferences such as KDC, Korea Display Conference, and domestic display 

industry issue forums more than 10 times per year in Korea, a center of global display industry. Through this, Displaybank closely 

observes the persistent industry flaw and contributes to rich infra and human network of the related industry. 

* Demand of Polarizer and Optical Film 

This was prepared on a basis of panel makers’ shipment result and future plan of production capacity 

enlargement. It was researched through various methods and courses of data collection targeting panel 

makers and polarizer makers. 

* Supply of Polarizer and Optical Film 

This was prepared on a basis of panel makers’ shipment result and future plan of production capacity 

enlargement. It was researched by collecting data through shipment result and supply chain of polarizer 

optical film makers. 

* Market and Price of Polarizer and Optical Film 

This researched global polarizer and optical film market prices by quarter. It collected polarizer shipment 

volume by quarter and supply price by product to estimate an average price and total price market. 


1. Overview 

1.3. Research Scope and Definition 


Date: 2009.06 

* Research Range: Polarizer is offered in a shape of film that all market was estimated based on dimension. 

* Research Item: Polarizer 

* Research Company: Companies that manufacture above item and its raw material 

* Research Period: From 4Q’08 to 1Q’09 

* Long-term Forecast: From 2008 market to 2013 market 

* Supply Chain: Calculated based on 4Q’08 

* Unit: 

- Ksqm: thousand square meter 

- Msqm: million square meter 

- Mil. USD million 

- Yen: Japanese Yen 

- Mil. Yen: million Japanese Yen 

- Y/Y Growth: annual growth rate 

- Q/Q Growth: quarter growth rate 

- CAGR: average annual growth rate 

* Abbreviation: 

- L.TFT: Large TFT (10.4” and larger) 

- S/M TFT: S/M TFT 

- Dongwoo: Dongwoo Fine Chem. 

- LGD: LG Display 

- SEC: Samsung Electronics 

- CMM: Chie Mei Material Technology 

- DCC: DC Chemical 



2.1. Overall Market (2008~2013) 


Date: 2009.06 

7,000 

50% 

6,000 

30% 

5,000 

18% 

Mil.USD 

4,000 

3,000 

-3% 

1% 

1% -1% -1% 

10% 

-10% 

2,000 

-30% 

1,000 

0 

2008 2009 2010 2011 2012 2013 

-50% 

Market 6,321 6,131 6,204 6,265 6,196 6,159 

Y/Y Growth 18% -3% 1% 1% -1% -1% 



2.3. Market Forecast by Application _ 10.4” and Larger Large TFT-LCD 


Date: 2009.06 

6,000 

100% 

5,000 

5,348 

5,201 

5,191 

5,195 

5,036 4,913 

90% 

80% 

Mil.USD 

4,000 

3,000 

2,000 

1,000 

0 

2008 2009 2010 2011 2012 2013 

Others 54 51 52 61 64 63 

NotePC 651 573 567 567 567 559 

Monitor 1,951 1,786 1,601 1,428 1,279 1,163 

LCD TV 2,702 2,791 2,971 3,140 3,127 3,128 

70% 

60% 

50% 

40% 

30% 

20% 

10% 

0% 

2008 2009 2010 2011 2012 2013 

Others 1% 1% 1% 1% 1% 1% 

NotePC 12% 11% 11% 11% 11% 11% 

Monitor 36% 34% 31% 27% 25% 24% 

LCD TV 50% 54% 57% 60% 62% 64% 



3.1. Overall Demand Forecast (2008~2013) 


Date: 2009.06 

450,000 

50% 

400,000 

350,000 

24% 

30% 

Ksqm 

300,000 

250,000 

200,000 

15% 

18% 

19% 

15% 

12% 

10% 

-10% 

150,000 

100,000 

-30% 

50,000 

0 

2008 2009 2010 2011 2012 2013 

Demand 192,618 221,028 260,179 309,107 355,269 397,314 

Y/Y Growth 24% 15% 18% 19% 15% 12% 

-50% 



3.2. Demand Forecast by Display Type (2008~2013) 


Date: 2009.06 

450,000 

100% 

Ksqm 

400,000 

350,000 

300,000 

250,000 

200,000 

150,000 

192,618 

221,028 

260,179 

309,107 

355,269 

397,314 

90% 

80% 

70% 

60% 

50% 

40% 

30% 

100,000 

20% 

50,000 

10% 

0 

2008 2009 2010 2011 2012 2013 

TN LCD 1,548 1,471 1,350 1,206 1,062 937 

STN LCD 1,013 748 736 644 562 476 

S/M TFT-LCD 8,112 8,288 9,378 10,307 11,613 12,879 

OLED 53 77 94 141 207 325 

Large TFT-LCD 181,892 210,444 248,620 296,809 341,825 382,696 

0% 

2008 2009 2010 2011 2012 2013 

TN LCD 0.8% 0.7% 0.5% 0.4% 0.3% 0.2% 

STN LCD 0.5% 0.3% 0.3% 0.2% 0.2% 0.1% 

S/M TFT-LCD 4.2% 3.7% 3.6% 3.3% 3.3% 3.2% 

OLED 0.0% 0.0% 0.0% 0.0% 0.1% 0.1% 

Large TFT-LCD 94.4% 95.2% 95.6% 96.0% 96.2% 96.3% 



4.1. Overall Demand Forecast (2Q’08~1Q’10)_Area 


Date: 2009.06 

70,000 

50% 

60,000 

50,000 

33% 

30% 

Ksqm 

40,000 

30,000 

1% 

4% 

-3% 

9% 

5% 

10% 

-9%-10% 

-16% 

20,000 

-30% 

10,000 

0 

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 

2008 2009 2010 

Demand 49,349 51,310 43,112 41,670 55,558 60,455 63,344 57,516 

Q/Q Growth 1% 4% -16% -3% 33% 9% 5% -9% 

-50% 


5. Polarizer Production Capacity Analysis 

5.1. Line and Production Capacity Status 


Date: 2009.06 


5. Polarizer Production Capacity Analysis 

5.2. Mid-term Production Capacity Forecast (2005~2010) 


Date: 2009.06 

‣ Production Capacity by Polarizer Maker 

600000 

546,280 

Sumitomo 

Sumica 

100% 

90% 

500000 

455,280 

STHC 

Skypolar 

80% 

Ksqm 

400000 

300000 

301,880 

360,480 

410,280 

Shinwha- 

Opla 

Sanritz 

QIAOYE 

Polatechno 

Other 

70% 

60% 

50% 

212,580 

Optimax 

40% 

200000 

166,380 

Nitto Denko 

LG Chem. 

30% 

100000 

0 

2004 2005 2006 2007 2008 2009 2010 

DAXON 

CMO 

Ace 

Digitech 

20% 

10% 

0% 

2004 2005 2006 2007 2008 2009 2010 

The above described production capacity by maker correspond to capacity based on year-end. Based on the end of 2008, Nitto 

Denko secure over 32% capacity globally followed by Taiwan-based Optimax in No.2 ranking with 15% share globally. But 

Optimax plans to only operate Pingzen line from June 2009. LG Chemical secures about 15% share and as the graph illustrates, 5 

high ranking makers (No.1 – No.5) combined share exceeds 80% suggesting large dependence on supply capacity from leading 

makers. 


6. Major Polarizer Maker Trend (Revenue/Shipment) 

6.1. Nitto Denko 


Date: 2009.06 

‣ Shipment Trend 

60,000 

50% 

50,000 

39% 

36% 

31% 33% 34% 

31% 

36% 36% 

30% 

Ksqm 

40,000 

30,000 

20,000 

10,000 

10% 

-10% 

-30% 

0 

2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 

2007 2008 2009 

Shipment (Ksqm) 16,002 16,382 16,107 16,019 16,733 15,943 15,407 14,815 

W/W Demand 40,515 45,890 51,735 48,846 49,349 51,310 43,112 41,670 

Share (Shipment/Demand) 39% 36% 31% 33% 34% 31% 36% 36% 

-50% 

Based on the results, we calculated approximate polarizer shipments in area basis. Polarizer price gap widens as to the method of 

processing remaining scrap and it corresponds to each maker’s technological ability such that comparison is made by adjusting 

into same area. The shipments in area basis is under assumption of WV polarizer manufactured in 1330mm width line. For 

reference, current WV price per 1m is about JPY 3000. 

Nitto Denko shipped 47 mil. square meter in 2006, 61 mil. square meter in 2007 and 64 mil. square meter in 2008. For each 

quarter, Nitto Denko has secured over 30% of global demands. 


6. Major Polarizer Maker Trend (Revenue/Shipment) 

6.9. Revenue Growth Trend by Polarizer Maker 


Date: 2009.06 

5.0 

4.5 

4.0 

3.5 

3.0 

2.5 

2.0 

1.5 

ACE Digitech 

Daxon 

LG Chem 

Nitto Denko 

Optimax 

Sanritz 

Sumitomo 

1.0 

0.5 

0.0 

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 

2006 2007 2008 2009 

Growth rate for each quarter was analyzed as base time being 1Q, 2006. Last 2 years show massive changes to polarizer makers 

including ACE Digitech, LG Chem., DAXON and Optimax. 



7.1. Note PC 


Date: 2009.06 

SEC LGD Hydis TMD AUO CMO CPT IVO Hannstar Sharp 

Nitto Denko 35% 27% 45% 38% 26% 44% 50% 

Sanritz 25% 30% 

Sumitomo 15% 38% 30% 51% 98% 20% 

LG Chem 35% 100% 2% 28% 

ACE Digitech 50% 37% 

Optimax 11% 20% 

DAXON 11% 63% 56% 15% 

CMMT 

Skypolar 

Note PC 

Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 

Sumitomo 

34% 

ACE 

Digitech 

16% 

CMMT 

0% 

Daxon 

4% 

LG Chem 

12% 

The market share by NotePC polarizer maker for 1Q is led by Sumitomo with 

34% share followed by Nitto Denko with 31% at No.2 ranking. Nitto Denko 

and Sumitomo comprises over 60% of NotePC polarizer market. Also, ACE 

Digitech moved up to No.3 ranking with 16% global market share by 

supplying 50% of Samsung’s total demand. 

Sanritz 

2% 

Optimax 

1% 

Nitto 

Denko 

31% 



8.2. Polarizer Price Trend (Under 20”) 


Date: 2009.06 

12.0 

10.0 

8.0 

USD/Set 

6.0 

4.0 

2.0 

0.0 

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 

2008 2009 2010 

14.1" HC 4.0 3.8 3.6 3.5 3.3 3.3 3.1 2.9 

14.1" HC/Thin 5.2 5.0 4.8 4.6 4.4 4.2 4.0 3.7 

15.4" HC 4.6 4.4 4.2 3.9 3.7 3.5 3.4 3.2 

17" AG,WV 8.3 8.0 7.8 7.6 7.2 6.9 6.6 6.2 

18.5"W AG,WV 10.0 9.4 8.9 8.6 8.2 7.8 7.5 7.0 

19" AG,WV 9.7 9.4 9.2 9.0 8.5 8.1 7.8 7.4 


Chapter 2. Polarizer Optical Film Market and 

Industry 


Date: 2009.06 









Date: 2009.06 

3.1. Overview 

3.1.1. Basic Characteristic and Process 

3.1.2. Compensation Principal upon Polarization Axis Adjustment 

3.1.3. Compensation Principal by Mode 

3.1.4. Type of Compensation Film 

3.2. Compensation Film Market Forecast 

3.2.1. Total Market Forecast 

3.2.2. Base Film Market Forecast by Type 

3.2.3. Market by Mode 


3.3.1. Production Capacity and Line Trend by Maker 

3.3.2. Compensation Film Usage Status by Maker 

3.3.3. Market Share 

3.3.4. Supply Chain Status 




3.2. Compensation Film Market Forecast – Large-area Compensation Film (IPS, VA Mode use) 


Date: 2009.06 

‣Market Forecast by Film – Area base 

Ksqm 

350,000 

300,000 

290,538 

254,254 

250,000 

215,773 

200,000 

173,053 

150,000 

139,446 

112,123 

100,000 

50,000 

0 

2008 2009 2010 2011 2012 2013 

Z-TAC 33,301 39,045 48,109 54,375 59,495 65,371 

Zeonor 16,733 19,941 22,324 27,403 30,256 33,993 

N-TAC 56,609 66,934 79,085 92,783 109,329 126,093 

J-Plate 0 1,394 3,461 8,199 12,077 14,527 

ESSINA 919 1,116 1,384 1,510 2,543 2,615 

B-TAC 3,434 9,761 17,305 30,208 39,409 46,486 

Arton 1,127 1,255 1,384 1,295 1,144 1,453 

100% 

90% 

80% 

70% 

60% 

50% 

40% 

30% 

20% 

10% 

0% 

2008 2009 2010 2011 2012 2013 

Z-TAC 30% 28% 28% 25% 23% 23% 

Zeonor 15% 14% 13% 13% 12% 12% 

N-TAC 50% 48% 46% 43% 43% 43% 

J-Plate 0% 1% 2% 4% 5% 5% 

ESSINA 1% 1% 1% 1% 1% 1% 

B-TAC 3% 7% 10% 14% 16% 16% 

Arton 1% 1% 1% 1% 0% 1% 

Looking at by Film, Konica Minolta’s N-TAC that are utilized by Samsung, AUO and CMO as VA Compensation Film is expected to 

record 48% market share followed by Z-TAC used in IPS at 28% and Zeonor used by Sharp and IPS-Alpha at 14%. As Fuji Film’s 

B-TAC aggressively trying to penetrate market, its market share is expected to grow to 7% in 2009. 





Date: 2009.06 

‣ Production Capacity & Line Trend by Maker – WV Film 

Ksqm/Year 

Film Company Nation Location Start 2004 2005 2006 2007 2008 2009 

Odawara L1 2,004 12,000 12,000 12,000 12,000 12,000 12,000 

Odawara L2 200508 12,000 12,000 12,000 12,000 12,000 

WV 

Fuji Film 

Odawara L3 200606 12,000 12,000 12,000 12,000 

Yosida L4 200705 12,000 12,000 12,000 

Yosida L5 200803 12,000 12,000 

Yosida L6 09/1Q 15,000 

Total 12,000 24,000 36,000 48,000 60,000 75,000 

The capacity of TAC based on Compensation Films(B-TAC, Z-TAC, N-TAC) are included in Normal TAC Capa. 





Date: 2009.06 

‣ Compensation Film Usage Trend by Panel Maker 

2009,Q1 

AU Optronics CMO CPT HannStar IPS Alpha LG Display Samsung Electronics Sharp 

Arton 0% 0% 0% 0% 28% 0% 0% 0% 

B-TAC 16% 11% 3% 0% 0% 0% 1% 0% 

ESSINA 0% 0% 0% 0% 0% 2% 0% 0% 

J-Plate 0% 0% 0% 0% 0% 1% 0% 0% 

N-TAC 42% 42% 21% 0% 0% 3% 68% 0% 

WV 36% 40% 76% 100% 0% 29% 31% 2% 

Zeonor 7% 6% 0% 0% 0% 0% 0% 98% 

Z-TAC 0% 0% 0% 0% 72% 65% 0% 0% 

Above is Compensation Film penetration rate by panel makers. (based on large-area) 

Fuji Film began aggressively marketing B-TAC. And in 2009, one can see growing usages for B-TAC gradually and if Samsung Electronics takes “2 

Vendor” route for compensation film, fierce competition between B-TAC and N-TAC is expected. 





Date: 2009.06 

1,600 

1,400 

1,200 

Yen/Ksqm 

1,000 

800 

600 

400 

200 

0 

2008 2009 2010 2011 

Arton 822 748 700 680 

B-TAC 935 600 520 470 

ESSINA 714 614 570 540 

J-Plate 400 360 340 331 

N-TAC 710 600 520 474 

Zeonor 783 720 690 662 

Z-TAC 837 693 645 599 

WV 1,374 1,261 1,165 1,074

3. Compensation Film - Displaybank

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