LCD TV Panel roadmap - Displaybank

Large Area TFT-LCD Panel DevelopmentStrategies and Roadmap AnalysisPART I . TV & PID PanelJuly 2009Displaybank Co., Ltd.8F 810, Yatap Leaders Bldg. 342-1 Yatap-dong,Bundang-gu, Seongnam-si, Gyeonggi-do, Korea 463-828Phone: (82) 31-704-7188, Fax: (82) 31-704-7187e-mail: ricky@displaybank.com

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 toany other person or entity.Displaybank Co., Ltd. provides the information in this report for informational purposes only and does not grant any express or impliedwarranty, guaranty, or representation concerning the information contained in this report, its merchantability, or its fitness for a particularpurpose or function. Any reference to any specific commercial product, process, or service by trade name, trademark, manufacturer, orotherwise, does not necessarily constitute or imply its endorsement, recommendation, or favoring by Displaybank Co., Ltd. NeitherDisplaybank nor any of its affiliates shall be liable to you or any third party in damages of whatever kind that may result from any relianceon (or use of) any information contained in this report. By receiving this report, you acknowledge that any reliance on informationcontained in this report shall be at your sole risk and that no representations have been made to you that are inconsistent with theforegoing.Displaybank Co., Ltd.8F 810, Yatap Leaders Bldg. 342-1 Yatap-dong,Bundang-gu, Seongnam-si, Gyeonggi-do, Korea 463-828Phone: (82) 31-704-7188, Fax: (82) 31-704-7187e-mail: ricky@displaybank.comC Displaybank Co., Ltd. 2009, Confidential

Contents 1. LCD TVLCD TV Trend• Market Trend• Technology TrendLCD TV Panel Trend• Industry Trend• Technology Trend• LCD TV Panel Roadmap by Size• LCD TV Panel Roadmap by Panel MakersLCD TV Panel Technology Roadmap• LCD TV Panel Technology Roadmap by Makers• LCD TV Panel Technology Strategy by Maker• LCD TV Panel Technology Comparison- LED BLU Panel/240Hz / Low Power / 3D / EtcC Displaybank Co., Ltd. 2009, Confidential

Contents 2. Public Information DisplayDefinition of PID•Definition of PID•Size & Resolution Positioning of PID•PID ApplicationPID Market•PID Market Demand Forecast•PID Market Demand Forecast by ApplicationPID Line Up• SEC / LGD / AUO / Sharp / PanasonicPID Panel Road Map•22, 29” / 32”, 37“ / 40” / 42”•46” / 47” / 52”, 55” / 57”, 65” / 82”, 108” /4K2KPID Technology Road Map•PID Technology Trend•SEC / LGD / AUOAppendix. LCD Related Exhibition•CEATEC Japan 2008•IMID Korea 2008•FPD International Japan 2008•SID 2009 USAC Displaybank Co., Ltd. 2009, Confidential

Chapter 1.LCD TV Trend• Market Trend- Global TV Market (1) ~(2)- 3rd Wave Flat Panel Display Evolution- LED TV Market growth• Technology Trend- Next LCD TV Technology- Next LCD TV (1) ~ (7)C Displaybank Co., Ltd. 2009, Confidential

Global TV Market (2)• DTV will evolve into Platform oriented TV and Evolution Speed is faster than beforeDigital + Network TV broadcastingColor TV BroadcastingUSJapanUKKoreaUK(DVB-T)US(ATSC)New PlatformBlack TV BroadcastingUKUSKorea§ Big Size Panel§ High Definition§ Flat Digital Panel§ Natural Colors§ Full Digital Broadcasting (2012)§ Various Display Panel( CCFL, LED, OLED )§ Platform Oriented TV- Add on System Internet , MobileHome network10 years 3 years20092012C Displaybank Co., Ltd. 2009, Confidential

Next LCD TV TechnologyLarge SizeMove to Large Panel Size- 40”/42” 46”/47” 52”/55” 70" 62” 82"(TBD)Enhance Image QualityMoving Image Quality & Ultra high resolution 60Hz HD'08 CES Show82" Size120HzMPRT 8msFHD240HzMPRT 4msUDSlimGreen & Low PowerSlim Design & LightLED BLUGreen Concept IGreen Concept II-Pb, Hg, As Free178 w'08 FPD Japan40" 7.8mm129 wC Displaybank Co., Ltd. 2009, Confidential

Chapter 2.LCD TV Panel Trend• Industry Trend- Next Line for LCD TV(G10/11)- Panel Cut by Generation(1) ~(3)- LCD TV Panel Maker production (Fab. allocation by Size)- LCD Makers TV Panel line up by Fab- LCD TV Demand forecast• Technology Trend- TV Panel makers technology Roadmap(’08~’13)- Panel maker Roadmaps for 120 Hz/240 Hz- LED TVs – Set Mainstream strategy• LCD TV Panel Roadmap by Size- LCD TV Panel roadmap- (18.5”HD) (21.5/6”HD) (26”HD) (32”HD 1-1, 1-2) (32”FHD)- (37”HD) (37”FHD) (40”HD, 40”FHD) (42”FHD: 1-1, 1-2) (46”FHD)- (47”FHD) (52”FHD) (55”FHD: 1~2) (Above 60”FHD)• LCD TV Panel Roadmap by Panel Makers- Major panel maker Products Line-up (LGD, SEC, AUO, CMO)- LCD TV panel specs trend (LGD, SEC, AUO, CMO)C Displaybank Co., Ltd. 2009, Confidential

Panel Cut by Generation(1)Small Size LCD TV(17” ~ 24”W)• Panel makers and brands employed LCD monitor for small size LCD TV segments and it calledMTV which causes to increase TV demand rapidly.• Samsung produced 18.5”, 21.6”W LCD TV panels in Gen 8 fabs from 1H’09.Gen Glass Size LCD Maker1000x1200LGDAspect Ratio16:10 16:1017"W 19'W 20'W 22"W 24"W 15.6"W 20W 22"W 23"W 24"W 24"WG51100x12501100x13001200x1300Samsung, AUOSamsung, AUO,CMO,BOE,SVA-NEC,IVOHannStarG5.5 1300x1500 CMOG6G7G81500x18001500x18001870x22001950x22502160x24602200x2500SharpLGD, AUO,CMO,CPT,InnoulxSamsung, S-LCDLG Display, AUO CMOSharpSamsung, LGD,CMO,AUOC Displaybank Co., Ltd. 2009, Confidential

LED TVs – Set Mainstream strategyMainstream strategy2006 ~ 2007 2008 ~ 20092010 ~Premium Picture• RGB, LED• 40”, 46”, 70”Picture• RGB, LED• 40”, 46”, 52”, 70”Slim + Picture + New Feature• 30mm under(LED, RGB, Direct Type, 240Hz)Slim• CCFL• 44.4mm, 45mmSlim + Picture• 30mm under(LED, White, Direct Type,240Hz)Step-up White LEDSlim• 30mm under(LED, White, Edge Type)• 40”, 46”, 55”Slim• 30mm under(LED, White, EdgeType)Slim + Picture• 30mm under(LED, Direct Type, 240Hz)MainstreamNon Slim + Picture + Price(LED, White, Direct)• Price 10%~20% Gap with CCFL• LED Chip 30% reducing• 40”, 46”, 52”, 57” 40”, 46”, 55”Slim• 30mm under(LED, Edge Type)Entry MainstreamNon Slim + Picture + Price(LED, White, Direct)• Price 10%~20% Gap with CCFLC Displaybank Co., Ltd. 2009, Confidential

LCD TV Panel roadmap (18.5”HD)• 18.5”W adopts 18.5”Monitor panel(MTV) for low-end and second TV.• LGD has a plan to adopt Edge LED and S-IPS panel in 09Q3.• LGD, Innolux will adopt LED backlight in this segment.MP DV PlanMaker 08H2 09Q1 09Q2 09Q3 09Q4LGDS-IPS LCD185WXE S-IPS LCD185WXL300nits/72%,5ms300nits/1000:1/72%,5msS-IPS, RGBS-IPS, Edge LEDAUOCMOCPTInnoulxC Displaybank Co., Ltd. 2009, Confidential

Chapter 3.LCD TV Panel Technology Roadmap• LCD TV Panel Technology Roadmap by Makers- Samsung- AUO- CMO- BOE-OT• LCD TV Panel Technology Strategy by Maker• LCD TV Panel Technology Comparison- LED BLU Panel (SEC, LGD, CMO)- 240Hz (SEC, LGD, AUO, CMO)- Low Power (SEC, LGD, CMO)- Etc (SEC, LGD, AUO)C Displaybank Co., Ltd. 2009, Confidential

Chapter 4.Definition of PID• Definition of PID• Size & Resolution Positioning of PID• PID Application- PID Application 1 (Advertisement)- PID Application 2 (Transportation_Signage)- PID Application 3 (Transportation_On Board Display)- PID Application 4 (Others)- PID Application 5 (Hybrid)- Next PID ApplicationsC Displaybank Co., Ltd. 2009, Confidential

PID ApplicationTransportation• Time Board (Airport, Bus terminal, Railway station, etc.), On BoardDisplayAdvertisement• Shopping Mall, Department Store, Discount Mart, Shop & Store, Bus stop,Street Board, Sign Board, Elevator, KioskEntertainmentTransportationPoint On Sales• Electronic Menu Board, Vending Machine, Point on SalesFinancialAdvertisementEducation• Class room use for AVEvent & RentalPublicInformationDisplayPoint on SalesControl Center• Fire, Electricity, Airport Control, Traffic Control, Military, etc.Office Board(Digital Signage)EducationOffice Board(Digital Signage)• Conference Room, Video conference, Meeting Room, in office useControl CenterEvent & Rental• Concert, Exhibition, Conference, Convention, Show & Trade showFinancial• Bank, Financial Exchange, Stock ExchangeEntertainment• Museum, Hotel Lobby, Bars, Restaurant, VIP room, Health Club, SportsCenter(Source: Displaybank Report, ‘PID Market Trend Analysis & Forecast’)C Displaybank Co., Ltd. 2009, Confidential

Chapter 5.PID Market•PID Market Demand Forecast•PID Market Demand Forecast by ApplicationC Displaybank Co., Ltd. 2009, Confidential

PID Market Demand Forecast• Including OBD (On Board Display), PID market is expected to grow 4.1 million units in 2009 up only 10% from theprevious year. However, the market is expected to grow rapidly to 10.6 million units in 2012 which is more than 2times bigger than 2008.• 40” segment is taking the biggest share accounting 45% of the total demand.• In terms of revenue, PID market is expected to grow $12 billion by year 2012.Panel Unit by SizeRevenue by Size12,00014,00010,00012,0008,00060"~10,00060"~Kpcs6,0004,00050"~59"40"~49"30"~39"20"~29"10"~19"Mil. US$8,0006,0004,00050"~59"40"~49"30"~39"20"~29"10"~19"2,0002,00002007 2008 2009 2010 2011 201202007 2008 2009 2010 2011 2012(Source : Displaybank, Q2’09)(Source : Displaybank, Q2’09)C Displaybank Co., Ltd. 2009, Confidential

Chapter 6.PID Line Up• PID Panel Lineup (SEC 1-1)• PID Panel Lineup (SEC 1-2)• PID Panel Lineup (LGD: 1-1)• PID Panel Lineup (LGD: 1-2)• PID Panel Lineup (AUO)• PID Panel Lineup (Sharp)• PID Panel Lineup (Panasonic)C Displaybank Co., Ltd. 2009, Confidential

PID Panel Lineup (SEC 1-1)OutdoorHigh Brightness (E-DID)StreetFurnitureBillboardQ1’09 Launched(70”, 2,000nits)Light UseP-DIDHeavy UseEntry ModelB-DIDRetailHotelRestaurantFIDSuper Narrow (E-DID)Multi-ScreenControl RoomIndoorDigital ADQ1’09 Launched(46”, 7.3mm)IndoorClassification Meaning RemarkE-DID(Exclusive DID)P-DID(High Performance DID)B-DID(Basic DID)Differentiated product from conventional DID:SEC's own innovative product(Super Narrow, High Brightness)DID with high brightness and reliable characteristics: Mainstream DID for advertisement, information and entertainmentapplicationsDID with basic public display function (Portrait usage)Advanced ProductHeavy-use ProductLight-use Product* Source: SECC Displaybank Co., Ltd. 2009, Confidential

Chapter 7.PID Panel Road Map• PID Panel roadmap(22, 29”)• PID Panel roadmap(32”, 37")• PID Panel roadmap(40”)• PID Panel roadmap(42”)• PID Panel roadmap(46”)• PID Panel roadmap(47”)• PID Panel roadmap(52”, 55”)• PID Panel roadmap(57”, 65”)• PID Panel roadmap(70”, 72”)• PID Panel roadmap(82”, 108”)• PID Panel roadmap(4K2K)C Displaybank Co., Ltd. 2009, Confidential

PID Panel roadmap(32”, 37")•32”~37” PID panels still use HD as the main resolution type with no roadmaps indicating FHD for PID.32”32”MP Developing PlanningLTA320AA05H2'08 Q1'09 Q2'09 Q3'09 Q4'10SEC1366x768/500nit4000:1/72%LTI320AA02LGDAUO37”37”H2'08 Q1'09 Q2'09 Q3'09 Q4'10CPTC Displaybank Co., Ltd. 2009, Confidential

Chapter 8.PID Technology Road Map• PID Technology Trend• PID Technology 1-1 (SEC)• PID Technology 1-2 (SEC)• PID Technology 1-3 (SEC)• PID Technology 1-4 (SEC)• PID Technology 1-5 (SEC)• PID Technology 2-1 (LGD)• PID Technology 2-2 (LGD)• PID Technology 2-3 (LGD)• PID Technology 2-4 (LGD)• PID Technology 2-5 (LGD)• PID Technology 2-6 (LGD)• PID Technology 3-1 (AUO)• PID Technology 3-2 (AUO)• PID Technology 3-3 (AUO)• PID Technology 3-4 (AUO)• PID Technology 3-5 (AUO)• PID Technology 3-6 (AUO)• PID Technology 3-7 (AUO)• PID Technology 3-8 (AUO)C Displaybank Co., Ltd. 2009, Confidential

PID Technology Trend•PID requires higher spec and feature than conventional TV panel.•As it is used to be located in the tougher circumstance and heavier usage application, reliability isthe most priority among the other requirements.2009 2010ResolutionBrightnessContrast RatioColor GamutSpecial FunctionTVPIDTVPIDTVPIDTVPIDPIDC Displaybank Co., Ltd. 2009, Confidential

Chapter 9.Appendix. World wide LCD Related Exhibition• CEATEC Japan 2008• IMID Korea 2008• FPD International Japan 2008• SID 2009 USAC Displaybank Co., Ltd. 2009, Confidential

CEATEC Japan 2008(1)Japanese FPD TV Makers’ Highlights at CEATEC 2008FPD TV HighlightsAQUOS XS1 SeriesContents52” & 65”, with High CR, Wide Color Gamut, Ultra Slim & Low PowerConsumptionSharpPanasonicSonyToshibaHitachiC Displaybank Co., Ltd. 2009, Confidential

Introduction of DisplaybankDisplaybank Co. Ltd. is the world’s top-notchdisplay & photovoltaic research firm.Since its foundation in 1999, Displaybank has provided the industrywith the company’s own broad range of database and outstandinganalysis and forecasts through prompt and accurate informationsurvey.Currently, Displaybank is proceeding with research activities coveringall display and photovoltaic industries, as well as going with a widevariety of worldwide customers including corporations, governmentalbodies, academic societies, and banking industry insiders.C Displaybank Co., Ltd. 2009, Confidential