LCD modules focus on true color display, clarity

China’s extensive range of LCD modules serves all markets, from low-end electronic toys to high-end TVs and entry-level mobile phones to upscale laptops. LCD modules come in three primary types and combinations thereof—TN, STN and TFT. TN/STN-LCD modules support b/w display mode suited to low-end watches, electronic counters, telephones and electrographs. STN-LCD modules are often used in industrial equipment, instruments and meters, in-car electronics, medical devices and consumer electronics. TFT-LCD modules are mainstream in full-color display mobile phones, portable DVD players, laptops, monitors and TVs. The diversity of applications alone ensures the sustainability and growth of the industry, makers say.
With the TN/STN/CSTN LCD module line entering maturity and competition from TFT-LCD modules and OLED displays reaching critical levels, a growing number of makers in China are rethinking their production focus and gravitating toward TFT-LCD modules. Declining costs and improving display quality are additional factors pushing interest in TFT-LCD modules, enabling makers of this LCD module type to slowly encroach into the market of CSTN-LCD modules, which has been strong in low-end to midrange mobile phones, MP3 and MP4 players, and PDAs with full-color displays. About 60 China companies now produce small- and medium-sized TFT-LCD modules and at least 20 offer large TFT-LCD modules.
China’s LCD module industry is composed of about 180 primary manufacturers, about 100 of which produce TN/STN/CSTN LCD modules and at least 80 turn out TFT-LCD modules. Most module manufacturers have in-house LCD panel production lines numbering more than 160. Companies that produce their own LCD panels also market these independent of their LCD modules, mostly to domestic companies.
Aside from primary LCD module makers, several small-scale companies outsource LCD panel production and engage only in LCD module assembly. These companies purchase TFT-LCD panels mostly from suppliers in Taiwan, South Korea and Japan and, thus, have less control over cost and delivery time than larger companies. Mainland China companies usually make their own TN, STN and CSTN or source from local makers. However, small companies can accommodate production on demand, flexible minimum orders and multiple models per order batch—selling points that large companies do not have.
The bulk of TFT-LCD module makers in mainland China are foreign-invested enterprises with manufacturing capability that easily outpaces that of locally owned companies. However, local makers are positive that continued capacity transfer from Taiwan, South Korea and Japan will lure more local suppliers into entering the line.