Taipei, Jan. 15, 2010 (CENS)--Demand for thin film transistor-liquid crystal display (TFT-LCD) optical films is expected to grow from 543 million square meters in 2009 to 606 million square meters in 2010, up 11% year-on-year (YoY), according to DisplaySearch`s recently-released quarterly optical film report.
The major display market research firm said that price erosion and cost reduction pressure from TFT-LCD makers are having strong impacts on the optical film market.
Due to price declines, TFT-LCD optical film revenues are expected to stay flat at US$9.1 billion. On the other hand, growing interest in green LCD TV panels and LED backlights are driving new backlight designs to add more prism films, reflective polarizers or micro-lens films, creating new opportunity for film makers who can provide improved technology.
DisplaySearch defines TFT-LCD optical films to include polarizers and backlight optical films, which include optical-film types include normal and multi-functional prism sheets, and micro-lens, reflective polarizer, diffuser and reflector films. While polarizers represent approximately one-third of total area, they account for approximately two-thirds of revenues.
Increased demand in display area is leading polarizer and backlight films to grow by 13% and 11% YoY, respectively. But while polarizer revenues will benefit from LCD TV, resulting in 2% YoY growth, backlight films are facing price pressure and are expected to decline by 5% in 2010, DisplaySearch said.
"Polarizers are essential for LCD panels, especially in wide viewing angle applications, while films that improve the brightness of the backlight and the LCD module are very important for cost reduction and green panel design; both grow with panel demand," noted Brian Chen, DisplaySearch TFT-LCD & materials research director.
| TFT-LCD Optical Films Shipments and Revenues (Millions of Square Meters, Millions of Dollars) |
| Film | Type | Shipments
2009 | Shipments
2010 | Y/Y | Revenues
2009 | Revenues
2010 | Y/Y |
Polarizer
Films | | 186.4 | 210.3 | 13% | $6,336 | $6,458 | 2% |
Backlight
Films | Reflector | 93.8 | 105.9 | 13% | $346 | $352 | 2% |
| Diffuser | 121.4 | 130.4 | 7% | $465 | $451 | -3% |
Reflective
Polarizer | 18.5 | 20.0 | 8% | $629 | $618 | -2% |
| Micro Lens | 50.3 | 55.5 | 10% | $357 | $296 | -17% |
Multi-Function
Prism | 12.0 | 12.8 | 6% | $181 | $173 | -5% |
| Normal Prism | 61.4 | 71.1 | 16% | $792 | $752 | -5% |
| Sub-Total | 357.4 | 395.8 | 11% | $2,770 | $2,643 | -5% |
| Total | | 543.8 | 606.1 | 11% | $9,106 | $9,101 | 0% |
| Source: Q4’09 Quarterly Display Optical Film Report |
(by Quincy Liang)
