Flat Panel DisplaysFlat Panel Displays

Jeffrey HartJeffrey HartIndiana UniversityIndiana University

Conference on Globalization and Conference on Globalization and InnovationInnovation

April 21, 2006April 21, 2006

Contact InformationContact Information

Jeffrey Hart, Dept. of Political Jeffrey Hart, Dept. of Political Science, Indiana University, Science, Indiana University, Bloomington, IN 47405Bloomington, IN 47405

Tel: (812) 855-9002Tel: (812) 855-9002 Email: Email: hartj@indiana.eduhartj@indiana.edu Web: Web: http://mypage.iu.edu/~hartjhttp://mypage.iu.edu/~hartj Flat panel web site: Flat panel web site:

http://php.indiana.edu/~hartj/FlatPanhttp://php.indiana.edu/~hartj/FlatPanl/fpdindex.html/fpdindex.htm

Flat Panel Display IndustryFlat Panel Display Industry

Major Flat Technology SegmentsMajor Flat Technology Segments Thin Film Transistor (TFT) Liquid Crystal Thin Film Transistor (TFT) Liquid Crystal

Displays (LCDs)Displays (LCDs) Single Twist Nematic (STN) Liquid Crystal Single Twist Nematic (STN) Liquid Crystal

Displays (also called passive LCDs)Displays (also called passive LCDs) Plasma Display Panels (PDPs)Plasma Display Panels (PDPs) Organic Light Emitting Displays (OLEDs)Organic Light Emitting Displays (OLEDs)

Competing TechnologiesCompeting Technologies Cathode Ray Tubes (CRTs)Cathode Ray Tubes (CRTs) Projection DisplaysProjection Displays

Growth of FPD Revenues (in Growth of FPD Revenues (in Billions of Current Dollars), Billions of Current Dollars),

1990-20061990-2006

Source: DisplaySearch.

Share of FDP Market by Share of FDP Market by Technology, 2005Technology, 2005

TFT,AMOLED

PDP

Passive LCD

Microdisplays

Passive OLED

Other

Source: DisplaySearch.

TFT-LCDTFT-LCD

Seven Generations of Glass Seven Generations of Glass SubstratesSubstrates

Source: Corning Glass.

66thth Generation TFT-LCD Fab Generation TFT-LCD Fab

Source: AUO.

Production Shares of TFT-LCDs Production Shares of TFT-LCDs by Country, 1993-2003, in by Country, 1993-2003, in

percentagespercentages

Source: Murtha, Lenway, and Hart, Managing New Industry Creation, andupdated by authors.

Major TFT-LCD Manufacturers, Major TFT-LCD Manufacturers, 20062006

JapanJapan KoreaKorea TaiwanTaiwan USUS ChinaChina

SharpSharp SamsunSamsungg

LG-LG-PhilipsPhilips

S-LCDS-LCD

AUOAUO

CMOCMO

HannStHannStarar

QuantaQuanta

CPTCPT

nonenone BOEBOE

SVASVA

Representative Geographic Representative Geographic Distribution of TFT-LCD Tool Distribution of TFT-LCD Tool and Glass Suppliers, 2006and Glass Suppliers, 2006

W.EurW.Eur..

JapanJapan KoreaKorea TaiwaTaiwann

USUS ChinaChina

UnaxisUnaxis CanonCanon

NikonNikonShimadzShimadzuu

Tokyo Tokyo ElectronElectron

AKTAKTPhoton Photon DynamicDynamicss

SchottSchott AsahiAsahi

NEGNEG

SamsunSamsung-g-CorningCorning

CorninCorningg

tools

glass

R&D Aspects of the IndustryR&D Aspects of the Industry The industry is highly research-intensiveThe industry is highly research-intensive Types of research requiredTypes of research required

Current and alternative display technologiesCurrent and alternative display technologies Current-generation production techniquesCurrent-generation production techniques Next-generation production techniquesNext-generation production techniques

Need to secure intellectual property Need to secure intellectual property rights (IPRs) for both product and rights (IPRs) for both product and process technologiesprocess technologies

Research Moves with Research Moves with Investment and ProductionInvestment and Production

General movement of investment and General movement of investment and production from Japan to Korea to Taiwan production from Japan to Korea to Taiwan and now to Chinaand now to China

R&D intensity of firms increases with each R&D intensity of firms increases with each move move

Participation of scientists and engineers in Participation of scientists and engineers in international meetings from new countriesinternational meetings from new countries

Increased patenting, licensing, and cross-Increased patenting, licensing, and cross-licensing activity accompanies movement licensing activity accompanies movement of productionof production

R&D Intensity of Display Firms R&D Intensity of Display Firms and Suppliers, 2005and Suppliers, 2005

FirmFirm IntensityIntensity

SharpSharp 14.314.3

Samsung Samsung ElectronicElectronicss

18.818.8

LG.PhilipsLG.Philips 51.751.7

AUOAUO 51.751.7

CPTCPT 24.324.3

CMOCMO 52.752.7

CorningCorning 31.431.4

CPT’s parent firm CPT’s parent firm Tatung has R&D Tatung has R&D intensity of 9.5intensity of 9.5

LG Electronics has LG Electronics has R&D intensity of R&D intensity of 16.816.8

Source: UK Dept. of Trade and Industry,The 2005 R&D Scorecard , Vol. 2, Company Data, 2005.

US LCD Patents by Firm, 2000-US LCD Patents by Firm, 2000-20042004

20002000 20012001 20022002 20032003 20042004

SharpSharp 9292 6969 6363 5555 4444

IBMIBM 1818 2222 1111 3434 2222LG.PhillipLG.Phillipss

44 2121 5959 114114 159159

SamsunSamsungg

1717 2626 1414 4343 5050

Chi Chi MeiMei

00 00 44 44 1414

HannStarHannStar 00 00 11 66 2222

Source: http://www.uspto.gov/go/taf/tecasg/349_tor.htm

Surnames of Elected Fellows of Surnames of Elected Fellows of the Society for Information Displaythe Society for Information Display

0

5

10

15

20

25

1963-69

1970-79

1980-89

1990-99

2000-05

US or European Japanese Chinese

Surnames

Source: SID

ConclusionsConclusions

R&D activity follows investment and R&D activity follows investment and production in this industryproduction in this industry

There is a lag with respect to top level There is a lag with respect to top level R&D and protection of intellectual R&D and protection of intellectual property in latecomer countries (E. property in latecomer countries (E. Asian tradition of not protecting IPRs Asian tradition of not protecting IPRs eroding?)eroding?)

Big question is whether China will Big question is whether China will follow the pattern of Korea and Taiwanfollow the pattern of Korea and Taiwan