What is a Display Fab: Key Players and Investment Opportunities

Explore the evolution of display fabs, from LCD to OLED and MicroLED technologies

Introduction

Display fabrication plants, or “display fabs,” play a crucial role in producing the screens used in smartphones, TVs, tablets, and other devices.

These plants carry out essential processes, such as thin-film transistor (TFT) deposition and color filter formation.

With the growing demand for high-quality displays, display fabs are becoming more important in the semiconductor industry.

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Overview of Display Fabs in 5 Key Points

Specialized Manufacturing: Display fabs produce panels for consumer electronics, automotive displays, and more.

Variety of Display Technologies: Technologies like LCD, OLED, MicroLED, and MiniLED offer distinct advantages in various applications.

Generational Classifications: Fabs are categorized by their substrate sizes, with higher generations enabling larger and more efficient panels.

  1. Global Leaders: Companies like Samsung, LG, BOE, and AUO dominate the display fab market.
  2. Future Trends: The industry is moving toward OLED and MicroLED, with China expanding rapidly and localization becoming a trend.

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Display Fab Generations: Unlocking Greater Efficiency

Display fabs are categorized by “generations” (Gen), which refer to the size of the glass substrate they handle.

Higher generation fabs can produce larger displays, improving efficiency and reducing costs.

Gen 10.5 fabs, for example, handle large substrates that allow for the production of larger TV panels and other devices.

Display Technologies: The Shift Towards OLED, MicroLED, and More

LCD: LCDs use backlighting to illuminate liquid crystals. They are common in TVs, monitors, and smartphones but fall short in contrast and energy efficiency compared to newer technologies.

OLED: OLED panels don’t need backlighting, offering better contrast and energy efficiency. They are commonly used in premium devices.

MicroLED: This emerging tech offers superior brightness, energy efficiency, and longevity. It is ideal for large-scale displays and high-end electronics.

MiniLED: MiniLED provides improved backlighting over traditional LCDs, offering better contrast at a more affordable price than OLED.

Quantum Dot: Quantum Dot enhances color and brightness in both OLED (QD-OLED) and LCD (QLED) displays.

E-Paper & Flexible Displays: E-paper displays are energy-efficient and used mainly in e-readers. Flexible displays are used in foldable devices and innovative form factors.

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Leading Display Fab Companies

South Korea:
  • Samsung Display: A leader in OLED, QD-OLED, and MicroLED technologies.
  • LG Display: Specializes in large-format OLED panels, particularly for TVs.
China:
  • BOE Technology: The largest global supplier of LCDs and a rising player in OLED.
  • CSOT (TCL): Expanding its footprint in OLED and MiniLED production.
  • Visionox: Focuses on flexible OLED displays for smartphones and wearables.
Taiwan:
  • AU Optronics (AUO): A strong player in LCD, MiniLED, and AMOLED technologies.
  • Innolux: A major producer of LCD panels used in various electronics.
Japan:
  • Japan Display Inc. (JDI): Once a leader in LCD, now struggling to keep up with OLED.
  • Sharp: Known for its IGZO technology in high-end LCD displays.
Other Notable Companies:
  • Foxconn: Expanded its display business through the acquisition of Sharp’s display unit.
  • Apple: Developing MicroLED technology for future devices.

Future of Display Fabs: Key Trends

Shift to OLED and MicroLED: The demand for these technologies is rising due to their better efficiency and flexibility.

China’s Expansion: Chinese companies like BOE and CSOT are heavily investing in advanced Gen 10.5 fabs to compete with established players.

MiniLED Growth: As a cost-effective alternative to OLED, MiniLED is seeing increasing adoption in premium devices.

Localization of Supply Chains: Countries like India are exploring local display fabs to reduce dependence on imports.

Conclusion: Investment Opportunities in Display Fabs

The global display fab industry is growing rapidly, fueled by new technologies and rising demand for advanced screens.

Investors have a unique chance to profit from innovations in OLED, MicroLED, and other cutting-edge display technologies.

Samsung, BOE, and LG lead the market, while emerging companies from China and Taiwan present strong growth potential.

As the market shifts towards more efficient, flexible, and energy-saving technologies, the next generation of display fabs will be critical in meeting the needs of the evolving tech landscape.

Investors looking to enter the semiconductor and display industries should keep a close eye on these trends and the companies leading the charge.

Kumar Priyadarshi
Kumar Priyadarshi

Kumar Joined IISER Pune after qualifying IIT-JEE in 2012. In his 5th year, he travelled to Singapore for his master’s thesis which yielded a Research Paper in ACS Nano. Kumar Joined Global Foundries as a process Engineer in Singapore working at 40 nm Process node. Working as a scientist at IIT Bombay as Senior Scientist, Kumar Led the team which built India’s 1st Memory Chip with Semiconductor Lab (SCL).

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