第45回ディスプレイ産業フォーラム | 45th Display Japan Forum

2023年7⽉27⽇～28⽇ | バーチャル形式にて開催 | July 27-28, 2023

Display-based user interface:

Touch, FoD and market challenges

Calvin Hsieh
45th Display Japan Forum, Tokyo
July 28, 2023

DISPLAY | Omdia | Informa Tech

[email protected] Copyright © 2023. All rights reserved. Informa Tech, a trading division of Informa PLC
 第44回ディスプレイ産業フォーラム | 45th Display Japan Forum
2023年7⽉27⽇～28⽇ | バーチャル形式にて開催 | July 27-28, 2023

Smartphone: AMOLED & challenges

● Smartphone: AMOLED & challenges

● IT applications: Form factors & fusion
● Automotive: Touch display & size trend
● FoD market: Decline for phone demand

Copyright © 2023. All rights reserved. Informa Tech, a trading division of Informa PLC
 第45回ディスプレイ産業フォーラム | 45th Display Japan Forum
2023年7⽉27⽇～28⽇ | バーチャル形式にて開催 | July 27-28, 2023

Phone: Market stagnation for touch and display

• Slow inventory clean-up and macro-economic uncertainty result in the decline.
• 2023 market: Handset and display shipment decline continue. High-level factors are more critical than clean-up since 2H23.
• Technology: In-cell TFT LCD and on-cell AMOLED have each half. Display tech and form factors decide ASP and positioning.
• Feature’s elastic fatigue: LTPO, cover lens and display form factor are pricing factors, but not attractive for replacement again.
• Outlook: Wait for next replacement cycle. High-level factors and China economics (supply chain de-risking and debts) concern.

Mobile phone: Touch module shipment (000s) Mobile phone: Major technologies and structures
Shipment 2021 2022 2023 2024 2025 2026 Sensor structure 2021 2022 2023 2024 2025 2026
Touch module 1,567,117 1,367,954 1,315,708 1,344,682 1,398,613 1,426,258 In-cell LCD: Vcom Blocks 53.0% 51.6% 53.2% 53.8% 53.7% 53.3%
Growth YoY 16% -13% -4% 2% 4% 2% In-cell LCD: Vcom Pattern 1.3% 1.3% 1.1% 0.5% 0.0% 0.0%
All handsets 1,658,173 1,532,628 1,513,195 1,541,744 1,566,321 1,589,442 On-cell LCD: Single Layer 0.3% 1.0% 0.2% 0.0% 0.0% 0.0%
On-cell AMOLED: Rigid 17.7% 14.3% 12.3% 11.3% 10.3% 9.7%
Mobile phone: Major technology On-cell AMOLED: Flexible 20.2% 27.2% 30.6% 32.1% 33.0% 33.2%
Module size 2021 2022 2023 2024 2025 2026 On-cell AMOLED: Foldable 0.5% 1.5% 1.6% 2.1% 2.9% 3.8%
In-cell TFT LCD 54.4% 52.9% 54.3% 54.3% 53.7% 53.3% GF2 6.3% 2.5% 0.9% 0.0% 0.0% 0.0%
On-cell AMOLED 38.5% 43.0% 44.5% 45.6% 46.3% 46.7% GFF 0.5% 0.5% 0.2% 0.1% 0.0% 0.0%
P. Capacitive 6.9% 3.1% 1.0% 0.1% 0.0% 0.0% Note: GF2 and in-cell Vcom pattern are Apple’s proprietary structures.
Source: Omdia Touch Panel Market Tracker, published in 2Q23 © 2023 Omdia

3 Copyright © 2023. All rights reserved. Informa Tech, a trading division of Informa PLC
Information Classification: General
 第45回ディスプレイ産業フォーラム | 45th Display Japan Forum
2023年7⽉27⽇～28⽇ | バーチャル形式にて開催 | July 27-28, 2023

Phone: Display technologies and clear positioning

• In-cell TFT LCD for entry by HD+, flexible OLED for midrange and high by FHD+. Can foldable be the savior?

Mobile phone: Embedded touch display quarterly shipments (000s)

Technology 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 1Q YoY
In-cell TFT LCD 196,545 213,367 180,233 193,367 172,094 177,285 182,993 54.3% 55.5% 55.0% 59.3% 53.0% 51.1% 56.3% 2%
On-cell TFT LCD 2,510 2,313 9,344 2,100 870 0.7% 0.0% 0.0% 0.7% 2.9% 0.6% 0.3%
On-cell AMOLED 163,182 171,356 147,685 130,442 143,507 167,214 141,230 45.0% 44.5% 45.0% 40.0% 44.2% 48.2% 43.4% -4%
Grand total 362,237 384,723 327,918 326,122 324,945 346,599 325,093 100% 100% 100% 100% 100% 100% 100% -1%

Mobile phone: In-cell TFT LCD shipment by resolution level (000s)

Resolution 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 1Q YoY
HD+ 133,669 140,180 120,387 142,341 121,846 135,181 139,660 68.0% 65.7% 66.8% 73.6% 70.8% 76.3% 76.3% 16%
FHD+ 62,876 73,187 59,846 51,026 50,248 42,104 43,333 32.0% 34.3% 33.2% 26.4% 29.2% 23.7% 23.7% -28%
Grand total 196,545 213,367 180,233 193,367 172,094 177,285 182,993 100% 100% 100% 100% 100% 100% 100% 2%

Mobile phone: On-cell AMOLED shipments by sensor structure (000s)

Structure 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 1Q YoY
Glass Top 79,332 46,780 58,110 59,230 38,234 40,095 31,733 48.6% 27.3% 39.3% 45.4% 26.6% 24.0% 22.5% -45%
Thin Film Top 79,550 121,076 87,375 68,562 95,943 120,469 107,577 48.7% 70.7% 59.2% 52.6% 66.9% 72.0% 76.2% 23%
Foldable Type 4,300 3,500 2,200 2,650 9,330 6,650 1,920 2.6% 2.0% 1.5% 2.0% 6.5% 4.0% 1.4% -13%
Grand total 163,182 171,356 147,685 130,442 143,507 167,214 141,230 100% 100% 100% 100% 100% 100% 100% -4%
Source: Omdia Touch Panel Market Tracker, published in 2Q23 (more display sizes and resolutions found in the report) © 2023 Omdia

4 Copyright © 2023. All rights reserved. Informa Tech, a trading division of Informa PLC
Information Classification: General
 第45回ディスプレイ産業フォーラム | 45th Display Japan Forum
2023年7⽉27⽇～28⽇ | バーチャル形式にて開催 | July 27-28, 2023

Phone: Touch display module business and ASPs

• Panel makers’ business is selling touch display module assembly to increase ASPs for revenues.
• Business: Make “final display” ASPs higher by selling assembly of display, embedded touch, and cover lens bonding (low profit %).
• Flexible OLED: One is foldable for higher ASP, and the other is lowering ASP and profits to replace rigid OLED and TFT LCD.
• Rigid OLED: Squeezed by flexible, capacity is moved to notebook (5x area use), tablet PC and automotive uses. Will this work?

Smartphone display ASP, pricing factors and issues

ASP pricing factors Display ASP ranges & technologies Predicament of rigid AMOLED

LTPS or LTPO driving Foldable: 1.5%

• Foldable 6.x” + UTG: $90 Flexible OLED + cover lens Notebook PC
Display form factor • Flexible LTPO + 3D: $35-75 Flexible OLED: 27% Tablet PC
• LTPO + 3D: $68 (SDC)
• Flexible LTPS + 3D: $21-50 Automotive
Touch as essential • LTPO + 3D: $39 (China) Rigid OLED, 14% (SDC A2)
• Flexible LTPS + 2.5D: $18-45
• LTPS + 3D: $35-50 (SDC)
Cover lens form factor FHD+ LTPS LCD, 15% • Performance
• LTPS + 3D: $21-38 (China)
• Rigid on-cell OLED: $15-18 • Stack design
Peak brightness • LTPS TFT LCD: $9-13 • LTPS + 2.5D: $30-45 (SDC) HD+ level • Rising cost
• LTPS + 2.5D: $18-42 (China) a-Si TFT LCD, 38% • Gen 8 wanted
NRE or customization • a-Si TFT LCD: $6-9

ASPs (July 2023) including embedded touch and cover lens are related to specifications and brand’s buying power.
Source: Omdia Touch Panel Market Tracker

5 Copyright © 2023. All rights reserved. Informa Tech, a trading division of Informa PLC
Information Classification: General
 第45回ディスプレイ産業フォーラム | 45th Display Japan Forum
2023年7⽉27⽇～28⽇ | バーチャル形式にて開催 | July 27-28, 2023

Phone: IT-used OLED or assembly to raise ASPs

• AMOLED is limited in phone use, and no longer embedded sensor after touch. IT use is the hope?

Rigid Flexible Foldable or slidable Hybrid for IT QD-OLED

Polarizer Polarizer COE (or polarizer) Polarizer Polarizer
Form factors & IT use

On-cell touch (SITO) On-cell touch (metallic) On-cell touch? On-cell touch?
On-cell touch (metallic)
by in-house or outsourcing by Y-OCTA or MLOC Thin film encapsulation
by Y-OCTA or MLOC Color conversion for R/G
Encapsulation glass Thin film encapsulation Thin film encapsulation Duo-stacked evaporation by inkjet printing (C/F)
OLED material OLED material OLED material Blue OLED materials
evaporation (horizontal) evaporation (horizontal) evaporation (horizontal) (horizontal or vertical) (UDC phosphorescence, 2024)

Glass substrate Polyimide Polyimide Glass substrate Glass substrate

TFT LCD Rigid AMOLED Flexible or foldable Foldable with COE Under-display Face ID
Cover lens Cover lens Cover lens Cover lens Cover lens
Module & sensors

Polarizer Polarizer Polarizer COE Polarizer

Color filter glass On-cell touch (SITO) On-cell touch (metallic) On-cell touch (metal/organic) On-cell touch (metallic)
LCD Encapsulation glass Thin film encapsulation Thin film encapsulation Thin film encapsulation
In-cell (Vcom blocks) AMOLED AMOLED AMOLED AMOLED
Glass substrate Glass substrate Polyimide Polyimide Polyimide

Side-mounted CFP CFP or optical (CIS) FoD Optical or ultrasonic FoD CFP or ultrasonic FoD Material, λ and algorithm
Apple’s patent: US11592864
Source: Omdia Touch Panel Market Tracker

6 Copyright © 2023. All rights reserved. Informa Tech, a trading division of Informa PLC
Information Classification: General
 第45回ディスプレイ産業フォーラム | 45th Display Japan Forum
2023年7⽉27⽇～28⽇ | バーチャル形式にて開催 | July 27-28, 2023

Phone: Struggling for value recognized and price up

• Declining ASPs impact profitability. Form factor and module assembly are still the way to make money.

Handset market Display ASP decline Display value to be Display tech Module Sensor
decline or stagnation to be less profitable less visible to users & form factor assembly embedded

Attractive? Low margin None after touch

Latest embedded touch display technologies and trends for smartphones

Technology Foldable on-cell AMOLED Flexible on-cell AMOLED Rigid on-cell AMOLED LTPS in-cell TFT LCD a-Si in-cell TFT LCD
Form factor Foldable by X- or Y-axis Curve or flat edges (rising) Flat edges Flat edges Flat edges
Positioning Emerging but few volume Flagship, high-end or midrange Midrange Midrange or mid-low Entry, emerging market
ASP 3Q22 More than $110 (6.x-inch) $32-$55: LTPS + 3D cover lens $17-$24 by specification $15-$20 by specification $9.5-$14 by specification
ASP 1Q23 More than $110 (6.x-inch) $24-$55: LTPS + 3D cover lens $15-$19 by specification $10-$14 by specification $7-$10 by specification
ASP 3Q23 $90 (6.x-inch) $21-$50: LTPS + 3D cover lens $15-$18 by specification $9-$13 by specification $6-$9 by specification
Display features LTPO, COE, 120Hz, HDR LTPO, LTPS, 120Hz, HDR LTPS, 90-120Hz, HDR 90-144Hz refresh Mostly HD-level variations
Touch sensor On-cell on TFE (below COE) On-cell on TFE (below polarizer) On-cell SITO Self-sensing in-cell on TFT In-cell on TFT, mask saving
Touch features 180-360Hz report rate, (FoD) 180-480Hz report rate, FoD, (TDDI) 180-240Hz report rate, FoD TDDI (limited report rate) TDDI (limited report rate)
Display capacity Mostly SDC, (BOE, CSOT) SDC, LGD, BOE, CSOT, etc. SDC, mostly for phones Shifted to NB or automotive Over-supply concern
Growth risks Cover lens, reliability & price ASP decline for profitability Limited in phone use now Predicament for positioning HD+ for emerging markets
Note: Panel prices include cover lens (2.5D or 3D) and depend on suppliers (SDC or China). Meaningful MP: SDC A2 (2011-2012), A3 (2016-2017); BOE B7 (2018-2019)
Source: Omdia Touch Panel Market Tracker © 2023 Omdia

7 Copyright © 2023. All rights reserved. Informa Tech, a trading division of Informa PLC
Information Classification: General
 第44回ディスプレイ産業フォーラム | 45th Display Japan Forum
2023年7⽉27⽇～28⽇ | バーチャル形式にて開催 | July 27-28, 2023

IT applications: Form factors & fusion

● Smartphone: AMOLED & challenges

● IT applications: Form factors & fusion
● Automotive: Touch display & size trend
● FoD market: Decline for phone demand

Copyright © 2023. All rights reserved. Informa Tech, a trading division of Informa PLC
 第45回ディスプレイ産業フォーラム | 45th Display Japan Forum
2023年7⽉27⽇～28⽇ | バーチャル形式にて開催 | July 27-28, 2023

Tablet PC: From application to form factor option

• PC brands are eager with the upgrade from 10-inch to larger 11- and 12-inch for productivity.
• 2023 market: Due to set demand still weaker in 1H23, overall shipments will keep declining but the extent could be smaller.
• Technology: In-cell touch for entry and midrange, GF2 dominant for Apple, and metal mesh for specific active-pen-use market.
• Competition: 8.x-inch as a start of entry products, midrange 10.x-inch moves to larger sizes featuring multi-tasking productivity.
• Outlook: Apple (18m) and Microsoft (5m) occupy the high-end segment; both will not abandon GF2 and metal mesh too soon.

Tablet PC: Touch module shipment (000s) Tablet PC: Major technologies and structures
Shipment 2021 2022 2023 2024 2025 2026 Sensor structure 2021 2022 2023 2024 2025 2026
Touch module 158,315 129,157 123,098 124,877 130,082 133,477 In-cell LCD: Vcom Bocks 42.0% 36.9% 36.3% 37.4% 39.0% 40.1%
Growth YoY 17% -18% -5% 1% 4% 3% On-cell LCD: SL / SITO 5.0% 1.0% 1.3% 1.1% 0.8% 0.8%
On-cell AMOLED: Rigid 2.6% 3.2% 2.8% 3.0% 3.1% 3.2%
Tablet PC: Major module sizes GF2 44.6% 52.7% 53.7% 53.6% 52.2% 51.0%
Module size 2021 2022 2023 2024 2025 2026 GFF 1.2% 0.8% 0.5% 0.0% 0.0% 0.0%
Casual 7"-9.x" 20.4% 18.7% 14.9% 11.8% 9.9% 8.6% GG 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Casual 10"-11.x" 68.8% 68.8% 70.2% 72.2% 73.6% 74.5% OGS 0.6% 0.5% 0.4% 0.0% 0.0% 0.0%
Productive 12.0-13.x" 10.7% 12.1% 14.4% 15.4% 16.0% 16.3% Metal Mesh 4.1% 4.8% 4.9% 4.9% 4.9% 4.9%
Productive 14"-15.x" 0.0% 0.4% 0.4% 0.5% 0.6% 0.6% Note: GF2 is Apple’s proprietary structures for all iPad products.
Source: Omdia Touch Panel Market Tracker, published in 2Q23 © 2023 Omdia

9 Copyright © 2023. All rights reserved. Informa Tech, a trading division of Informa PLC
Information Classification: General
 第45回ディスプレイ産業フォーラム | 45th Display Japan Forum
2023年7⽉27⽇～28⽇ | バーチャル形式にて開催 | July 27-28, 2023

Tablet PC: Dazzling specs as smartphones

• In-cell TFT LCD and on-cell AMOLED have bigger sizes. Apple iPads still have higher positioning.

Tablet PC: Embedded touch display shipment by resolution (000s)

Technology Resolution 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 1Q YoY
In-cell TFT LCD ≤1920 x 1200 8,605 6,590 5,610 4,595 3,857 6,153 5,626 49.1% 42.4% 37.0% 36.3% 30.2% 49.1% 42.7% 0%
2000 x 1200 4,344 4,780 4,925 3,697 5,859 3,330 3,803 24.8% 30.7% 32.5% 29.2% 45.9% 26.6% 28.9% -23%
2160 x 1440 15 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.1%
2176 x 1600 110 200 4 0.6% 1.3% 0.0% 0.0% 0.0% 0.0% 0.0%
Complicated 2560 x 1600 2,170 2,020 3,045 3,125 1,920 1,547 1,938 12.4% 13.0% 20.1% 24.7% 15.0% 12.3% 14.7% -36%
sizes and 2800 x 1968 3 90 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.7%
resolutions
2800 x 2000 50 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.4%
just like
2880 x 1880 28 385 0.0% 0.0% 0.0% 0.0% 0.0% 0.2% 2.9%
smartphone
2944 x 1840 2 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
On-cell TFT LCD ≤1920 x 1200 1,160 1,180 485 244 251 275 475 6.6% 7.6% 3.2% 1.9% 2.0% 2.2% 3.6% -2%
On-cell AMOLED ≤2560 x 1080 0 0 0 0 240 465 273 0.0% 0.0% 0.0% 0.0% 1.9% 3.7% 2.1%
2560 x 1600 790 600 650 670 365 240 156 4.5% 3.9% 4.3% 5.3% 2.9% 1.9% 1.2% -76%
2800 x 1752 350 170 300 220 150 300 250 2.0% 1.1% 2.0% 1.7% 1.2% 2.4% 1.9% -17%
2960 x 1848 20 130 100 120 200 100 0.0% 0.1% 0.9% 0.8% 0.9% 1.6% 0.8% -23%
3000 x 1876 11 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.1%
Grand total 17,529 15,560 15,145 12,651 12,762 12,541 13,178 100% 100% 100% 100% 100% 100% 100% -13%
Source: Omdia Touch Panel Market Tracker, published in 2Q23 (size vs. resolution vs. panel maker found in the report) © 2023 Omdia

10 Copyright © 2023. All rights reserved. Informa Tech, a trading division of Informa PLC
Information Classification: General
 第45回ディスプレイ産業フォーラム | 45th Display Japan Forum
2023年7⽉27⽇～28⽇ | バーチャル形式にて開催 | July 27-28, 2023

Tablet PC: From confusion to fusion

• Larger tablet PCs are competing with Ultrabook and convertible notebook PC?
• Positioning: Large = productivity, ease of use, (touch and active pen), good portability, and form factor option other than clam-shell.
• Market as 1+1 < 2: Productive tablet PCs are less possible to create new market; instead, grabbing shares from notebook PCs.
• From confusion to fusion: Users just select form factor options (tablet, convertible or clam-shell) and OS platforms for needs.

Tablet PCs moving to productive computing use

Android-based Apple iPad Windows tablet Windows convertible

Pricing ≤ $300-500 Mostly ≥ $600 ≥ $900 ≥ $900

Touch ≥ 10.1-inch, ≥ 220 ppi, ≥ 10.9-inch, ≥ 264 ppi, ≥ 12-inch, ≥ 260 ppi, ≥ 13-inch, ≥ 160 ppi,
display optional 120Hz Pro Motion 120Hz (iPad Pro) mostly 60Hz and few 120Hz mostly 60Hz and few 120Hz

Major user Mostly in-cell touch, GF2 for pen performance, Mostly metal mesh, OGM or metal mesh,
interfaces optional: ext. keyboard, pen featuring: ext. keyboard, pen ext. keyboard, pen as a must int. keyboard, pen as a must

Platforms Android 12 or 12L, iPadOS w/ Stage Manager, Windows 11 (desktop GUI) Windows 11 (desktop GUI)
& segments mostly entry or midrange mostly midrange or high-end mostly midrange or high-end mostly midrange or high-end

Biometric ID Very few for cost saving Touch ID or Face ID Windows Hello (+ haptic trackpad and active pen by Microsoft)

Source: Omdia Touch Panel Market Tracker Note: Samsung Galaxy Tab S series features EMR-based active pen with on-cell AMOLED or in-cell TFT LCD.

11 Copyright © 2023. All rights reserved. Informa Tech, a trading division of Informa PLC
Information Classification: General
 第45回ディスプレイ産業フォーラム | 45th Display Japan Forum
2023年7⽉27⽇～28⽇ | バーチャル形式にて開催 | July 27-28, 2023

Notebook PC: Waiting for next replacement cycle

• Certain with inventory clean-up finished in 2Q23, but uncertain with the future for high-level factors.
• 2023 market: Most ODM makers predicted lower shipment decline YoY in the whole year but expected a better second half.
• Technology: Add-on touch for high-end segment were less impacted than embedded touch focused on lower positioning in 2022.
• Touch: Brands clearly have convertible touch lines, but touch as nice-to-have to others. This make touch penetration stagnated.
• Outlook: If high-level factors are relieved in the end of 2023, growth could be back in 2H24 or 2025 due to replacement demand.

Notebook PC: Touch module shipment (000s) Notebook PC: Major technologies and structures
Shipment 2021 2022 2023 2024 2025 2026 Sensor structure 2021 2022 2023 2024 2025 2026
Touch module 55,137 37,624 34,990 36,861 39,853 42,229 In-cell LCD: Vcom Blocks 7.8% 5.5% 6.0% 7.6% 12.6% 17.1%
Growth YoY 12% -32% -7% 5% 8% 6% On-cell LCD: ITO / metal 43.2% 32.8% 30.2% 29.6% 27.8% 25.7%
Penetration % 21.1% 18.8% 18.1% 17.8% 17.4% 17.5% On-cell AMOLED: Rigid 0.0% 0.3% 1.4% 4.7% 6.5% 8.2%
GFF 1.1% 0.8% 0.5% 0.0% 0.0% 0.0%
Notebook PC: Major module sizes OGS (ITO / metal) 28.8% 39.0% 40.5% 37.5% 33.1% 29.7%
Module size 2021 2022 2023 2024 2025 2026 Metal Mesh (GF2-like) 18.9% 21.6% 21.4% 20.6% 20.0% 19.3%
10.0-11.x" 10.8% 6.2% 4.8% 3.7% 3.2% 2.3% Note:
12.0-13.x" 23.4% 22.9% 22.7% 22.9% 21.9% 21.2% Some OGS and on-cell TFT LCD displays adopt metallic sensor materials.
14.0-15.x" 63.1% 67.8% 67.5% 66.7% 66.8% 68.2% Most metal mesh sensors (popular in convertible notebooks) have GF2-like stack.
16.0-19.x" 2.7% 3.1% 5.0% 6.7% 8.1% 8.3% Source: Omdia Touch Panel Market Tracker, published in 2Q23 © 2023 Omdia

12 Copyright © 2023. All rights reserved. Informa Tech, a trading division of Informa PLC
Information Classification: General
 第45回ディスプレイ産業フォーラム | 45th Display Japan Forum
2023年7⽉27⽇～28⽇ | バーチャル形式にて開催 | July 27-28, 2023

Notebook PC: In-cell transition coming late

• In-cell TFT LCD product ramp-up is slower due to the weak market and uncertainty in 2023.
• In-cell TFT LCD: After big shipments in 2020-2021 and clean-up in 2022, in-cell TFT LCD 16:10 will have notable shipments in 2024.

Notebook PC: Embedded touch display shipment by resolution (000s)

Technology Resolution 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 1Q YoY
In-cell TFT LCD 1536 x 1024 720 450 100 140 200 100 20 10.3% 8.3% 2.3% 3.7% 5.8% 3.4% 0.7% -80%
1920 x 1080 595 585 355 346 443 245 485 8.5% 10.8% 8.3% 9.0% 12.8% 8.2% 16.3% 37%
1920 x 1200 21 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.7%
2560 x 1440 31 15 140 6 0.4% 0.3% 3.3% 0.2% 0.0% 0.0% 0.0% -100%
2560 x 1600 1 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
16:10 options
3072 x 1440 1 1 1 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
surging to
3840 x 2160 3 1 0.0% 0.0% 0.0% 0.1% 0.0% 0.0% 0.0%
replace 16:9
3840 x 2400 12 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.4%
On-cell TFT LCD 1366 x 768 1,537 428 631 622 652 423 622 21.9% 7.9% 14.7% 16.2% 18.8% 14.2% 20.9% -1%
1366 x 912 70 25 38 10 1 5 2 1.0% 0.5% 0.9% 0.3% 0.0% 0.2% 0.1% -95%
1920 x 1080 4,035 3,906 2,983 2,580 2,040 1,745 1,378 57.6% 72.0% 69.4% 67.4% 58.9% 58.7% 46.3% -54%
1920 x 1200 16 10 45 100 116 355 315 0.2% 0.2% 1.0% 2.6% 3.3% 11.9% 10.6% 600%
On-cell AMOLED 2880 x 1800 100 117 0.0% 0.0% 0.0% 0.0% 0.0% 3.4% 3.9%
2048 x 1536 7 6 20 10 0.0% 0.1% 0.1% 0.5% 0.3% 0.0% 0.0% -100%
Grand total 7,004 5,426 4,298 3,828 3,464 2,973 2,974 100% 100% 100% 100% 100% 100% 100% -31%
Source: Omdia Touch Panel Market Tracker, published in 2Q23 (size vs. resolution vs. panel maker found in the report) © 2023 Omdia

13 Copyright © 2023. All rights reserved. Informa Tech, a trading division of Informa PLC
Information Classification: General
 第45回ディスプレイ産業フォーラム | 45th Display Japan Forum
2023年7⽉27⽇～28⽇ | バーチャル形式にて開催 | July 27-28, 2023

Notebook PC: Touch must-have only in convertible

• PC brands no longer think of touch, cover lens and active pen as general must.
• Touch display: Except convertible (with active pen) and some touch models, touch is optional or nice-to-have to other segments.
• OLED: Fewer demand (4-5m in 2023), and most models are still non-touch to saving extra costs (touch, cover lens and coating).
• Rising in-cell: PC brands consider in-cell TFT LCD (FHD+ & QHD+) without cover lens to make touch attractive and affordable.

Notebook PC product segments and touch-favoring use

Gaming Creation Business Education Consumer Convertible

Pricing ≥ $800 ≥ $1,000 ≥ $1,000 ≤ $700 ≥ $500 ≥ $900

Performance Good CPU & GPU Good CPU & GPU Good CPU Entry to midrange Entry to high Midrange to high

Display High refresh rate, High resolution, Prices and segments by display specifications 160-220ppi, AG / AR,
featuring ≥ sRGB 100% DCI-P3 or Adobe (ex. resolution, color gamut, TÜV Method 2…) sRGB 100%

Optional, nice-to-have finger touch, Nice-to-have finger touch, Must-have,

Touch
or even not necessary optional active pen use active pen use

Display AMOLED featuring colors, In-cell (normal or flip type) replacing on-cell TFT LCD TFT LCD, OLED
strategy on-cell touch not urgent Few AMOLED use (mostly consumer high-end) OGM or metal mesh

Source: Omdia Touch Panel Market Tracker

14 Copyright © 2023. All rights reserved. Informa Tech, a trading division of Informa PLC
Information Classification: General
 第44回ディスプレイ産業フォーラム | 45th Display Japan Forum
2023年7⽉27⽇～28⽇ | バーチャル形式にて開催 | July 27-28, 2023

Automotive: Touch display & size trend

● Smartphone: AMOLED & challenges

● IT applications: Form factors & fusion
● Automotive: Touch display & size trend
● FoD market: Decline for phone demand

Copyright © 2023. All rights reserved. Informa Tech, a trading division of Informa PLC
 第45回ディスプレイ産業フォーラム | 45th Display Japan Forum
2023年7⽉27⽇～28⽇ | バーチャル形式にて開催 | July 27-28, 2023

Automotive: In-cell TFT LCD growing in ≥ 10-inch

• Shipments of 10-14.x-inch segment are reaching near 50% share soon.
• 2023 market: Besides higher penetration (car units at 82m) reached, supply chain is moving from add-on touch to panel makers.
• Technology: ≥ 10-inch by both add-on (47.8%) and in-cell TFT LCD (47.8%) equally; < 10-inch by add-on touch (95.8%) in 2022.
• Size: In-cell TFT LCD grabbed 30.5% (2021) and 47.1% (2022) in 10-14.x; 23.7% (2021) and 52.6% (2022) in 15-19.x segment.
• Outlook: ≥ 10-inch with embedded touch and display module integration is panel makers’ strategy like smartphone application.

Automotive monitor: Touch module shipment (000s) Automotive monitor: Major technologies and structures
Shipment 2021 2022 2023 2024 2025 2026 Sensor structure 2021 2022 2023 2024 2025 2026
Touch module 69,073 70,526 71,342 74,129 77,632 79,274 In-cell LCD: Vcom Blocks 11.7% 25.0% 31.9% 37.8% 43.7% 50.3%
Growth YoY 17% 2% 1% 4% 5% 2% On-cell LCD: SITO 0.5% 2.0% 1.5% 1.0% 0.7% 0.5%
On-cell AMOLED: Rigid 0.1% 0.2% 0.4% 0.6% 0.8% 1.1%
Automotive monitor: Major module sizes On-cell AMOLED: Flexible 0.4% 0.5% 0.8% 1.6% 2.7% 4.0%
Module size 2021 2022 2023 2024 2025 2026 GFF 5.9% 5.6% 5.2% 4.9% 4.3% 3.7%
<10" 63.0% 50.2% 43.2% 39.0% 35.3% 31.3% PFF 0.2% 0.1% 0.0% 0.0% 0.0% 0.0%
10.0-14.x" 34.2% 43.8% 47.6% 48.3% 49.0% 49.7% GG 49.9% 40.9% 37.1% 32.8% 28.6% 24.1%
15.0-19.x" 2.8% 5.8% 8.8% 11.9% 14.4% 16.5% OGS 29.9% 25.2% 23.2% 21.3% 19.1% 16.3%
20.0-29.x" 0.0% 0.1% 0.3% 0.6% 1.0% 1.8% Resistive 1.2% 0.5% 0.0% 0.0% 0.0% 0.0%
30.0-49.x" 0.0% 0.0% 0.1% 0.1% 0.3% 0.6% Source: Omdia Touch Panel Market Tracker, published in 2Q23 © 2023 Omdia

16 Copyright © 2023. All rights reserved. Informa Tech, a trading division of Informa PLC
Information Classification: General
 第45回ディスプレイ産業フォーラム | 45th Display Japan Forum
2023年7⽉27⽇～28⽇ | バーチャル形式にて開催 | July 27-28, 2023

Automotive: Displays, adhesives and CSD form factors

Touch CSD, cover lens bonding and car segments

Entry segment Mainstream and premium segments

Flat form factor Flat and curve form factors Curve form factor for aesthetics and ergonomics

VFD or ≤ 7 - 8-inch ≤ 10 - 20-inch, single display ≥ 20-inch (by mechanical ≥ 20-inch

TN LCD a-Si TFT LCD VA or IPS TFT LCD (a-Si or LTPS) ICD + CSD integration) longer single display

Mechanical buttons Touch Touch with GUI, speech, (gesture sensing)

Indicators CSD application for Switchable GUI-based visualization

for interior functions media & navigation for ADAS, telematics and interior functions

Display: Bracket removed OCA: Area, bubble, pressure in auto-clave Cover glass: Anti-reflection, hot or cold bending, adhesive peeling

Cover glass Cover glass

Bracket OCR OCA or OCR
OCR or air gap OCA or OCR
≤ 10 rigid display ≤ 15-inch or 20-inch rigid display Rigid display

OCR filling the gap FOG (cell + DDI), optical bonding then LCM Adhesive use & display performance Rigid or flexible display

Source: Omdia Touch Panel Market Tracker

17 Copyright © 2023. All rights reserved. Informa Tech, a trading division of Informa PLC
Information Classification: General
 第45回ディスプレイ産業フォーラム | 45th Display Japan Forum
2023年7⽉27⽇～28⽇ | バーチャル形式にて開催 | July 27-28, 2023

Automotive: In-cell rising in bigger display sizes

• CSD touch displays likely stay at < 20-inch for years due to cost and uncertain necessity.
• Touch: In-cell TFT LCD will grow in ≥ 10-inch, then replace on-cell TFT LCD and add-on (< 10-inch), or <10-inch will disappear.
• Display: 10-19.x-inch has been the most critical segment and grabs shares from < 10-inch. > 20-inch is still uncertain.
• High-level: Geo-political conflict (China as > 30% car market share), semiconductor, battery issues and demographical transition.

CSD display size segments and touch technologies

Entry, 50% Mainstream, 35% Premium, 15%

Size range ≤ 10-inch 10.0 – 14.x-inch 15.0 – 19.x-inch ≥ 20-inch

Add-on touch (67% in ≤ 10”, 30% in 10-14.x”) Growth trend uncertain

Touch tech
for its customization,
Future target In-cell TFT LCD (83% in 10-14.x”, 12% in 15-19.x”)
necessity, malfunction,
On-cell AMOLED (49% in 10-14.x”, 44% in 15-19.x”) and related costs soaring

Display trend TFT LCD by edge- or mini-LED B/L AMOLED capacity dumping and reliability ADAS moving from CSD to AR HUD

High-level Geo-political conflict on supply chain Semiconductor cost & competence Battery charging & recycling Demographics

Note: Shares above are by 2022 shipments; in-cell LCD (17.6m), on-cell LCD (1.4m), on-cell OLED (501K), and add-on (51m).
Source: Omdia Touch Panel Market Tracker

18 Copyright © 2023. All rights reserved. Informa Tech, a trading division of Informa PLC
Information Classification: General
 第44回ディスプレイ産業フォーラム | 45th Display Japan Forum
2023年7⽉27⽇～28⽇ | バーチャル形式にて開催 | July 27-28, 2023

FoD market: Decline for phone demand

● Smartphone: AMOLED & challenges

● IT applications: Form factors & fusion
● Automotive: Touch display & size trend
● FoD market: Decline for phone demand

Copyright © 2023. All rights reserved. Informa Tech, a trading division of Informa PLC
 第45回ディスプレイ産業フォーラム | 45th Display Japan Forum
2023年7⽉27⽇～28⽇ | バーチャル形式にて開催 | July 27-28, 2023

FoD adoption trend from 2022 to 1H23

• Non-Apple brands reduced CFP in LCD or rigid OLED, and increased OLED + FoD use in 1H23.
Smartphones (212 models) and the biometric ID solutions in 1H23
Password Face ID Capacitance FoD
29 0 104 (160 in 1H22) 79 (80 in 1H22)
13.7% 0% 49.1% 37.3%
None Structured light Front-mounted Rear-mounted Side-mounted Optical lens Microlens Ultrasonic
29 0 0 11 93 71 2 6
100% N/A 0% 10.6% 89.4% 89.9% 2.5% 7.6%
LCD R-OLED F-OLED LCD LCD LCD R-OLED F-OLED Foldable R-OLED F-OLED F-OLED 8x8mm 20x30mm
29 0 0 0 11 76 (100) 8 (30) 3 (8) 6 9 62 2 5 1
100% 0% N/A N/A 100% 81.7% 8.6% 3.2% 6.5% 12.7% 87.3% 100% 83.3% 16.7%
“(xxx)” models in 1H22
Smartphones (487 models) and the biometric ID solutions in 2022
Password Face ID Capacitance FoD
49 4 276 158 (2022)
10.1% 0.8% 56.7% 32.4%
None Structured light Front-mounted Rear-mounted Side-mounted Optical lens Microlens Ultrasonic
49 4 2 31 243 132 12 14
100% 100% 0.7% 11.2% 88.0% 83.5% 7.6% 8.9%
LCD R-OLED F-OLED LCD LCD LCD R-OLED F-OLED Foldable R-OLED F-OLED F-OLED 8x8mm 20x30mm
46 3 4 2 31 173 45 14 11 55 77 12 6 8
93.9% 6.1% 100% 100% 100% 71.2% 18.5% 5.8% 4.5% 41.7% 58.3% 100% 42.9% 57.1%

Source: Omdia Display Fingerprint Technology and Market Report 1H23, published in 3Q23

20 Copyright © 2023. All rights reserved. Informa Tech, a trading division of Informa PLC
Information Classification: General
 第45回ディスプレイ産業フォーラム | 45th Display Japan Forum
2023年7⽉27⽇～28⽇ | バーチャル形式にて開催 | July 27-28, 2023

FoD long-term shipments and technical trends

• Lack of Apple’s and FoD for LCD, FoD shipments will depend on non-Apple AMOLED portions.
CIS-based optical lens & TFT-based ultrasound
Mobile phone: FoD shipment, share and growth (000s)
Technology Structure 2021 2022 2023 2024 2025 2026 2027 2021 2022 2023 2024 2025 2026 2027
Optical Microlens (CIS) 24,640 10,170 3,837 0 0 0 0 6.5% 2.9% 1.1% 0.0% 0.0% 0.0% 0.0%
Imaging Optical Lens (CIS) 316,757 304,227 307,634 320,801 334,082 340,497 345,434 83.9% 85.8% 86.9% 87.6% 87.9% 88.0% 88.1%
Optical Layer (TFT) 0 0 480 880 1,447 1,876 2,166 0.0% 0.0% 0.1% 0.2% 0.4% 0.5% 0.6%
Ultrasound Copolymer (TFT) 35,970 40,250 42,138 44,428 44,707 44,486 44,671 9.5% 11.3% 11.9% 12.1% 11.8% 11.5% 11.4%
Grand total 377,367 354,647 354,090 366,109 380,236 386,859 392,271 100% 100% 100% 100% 100% 100% 100%
YoY growth 9% -6% 0% 3% 4% 2% 1%

Mobile phone: Biometric ID module shipment and penetration (000s) Higher YoY than handset
Shipment (000s) 2021 2022 2023 2024 2025 2026 2027 2021 2022 2023 2024 2025 2026 2027
Biometric ID Display fingerprint (FoD) 377,367 354,647 354,090 366,109 380,236 386,859 392,271 9% -6% 0% 3% 4% 2% 1%
Discrete fingerprint (CFP) 639,137 585,723 542,320 591,073 621,565 633,974 642,690 8% -8% -7% 9% 5% 2% 1%
3D-based Face ID 226,690 212,720 223,739 228,281 233,394 238,015 239,824 32% -6% 5% 2% 2% 2% 1%
All biometric ID 1,243,194 1,153,090 1,120,149 1,185,464 1,235,195 1,258,849 1,274,785 12% -7% -3% 6% 4% 2% 1%
Bio-ID % FoD penetration % 28.2% 29.4% 31.0% 30.7% 30.7% 30.7% 30.7%
Stagnated FoD %
CFP penetration % 47.7% 48.5% 47.4% 49.6% 50.1% 50.2% 50.3%
Face ID penetration % 16.9% 17.6% 19.6% 19.2% 18.8% 18.9% 18.8%
Smartphone forecast 1,339,668 1,207,185 1,143,811 1,191,160 1,240,554 1,261,732 1,277,020 3% -10% -5% 4% 4% 2% 1%

Source: Omdia Display Fingerprint Technology and Market Report 1H23, published in 3Q23

21 Copyright © 2023. All rights reserved. Informa Tech, a trading division of Informa PLC
Information Classification: General
 第45回ディスプレイ産業フォーラム | 45th Display Japan Forum
2023年7⽉27⽇～28⽇ | バーチャル形式にて開催 | July 27-28, 2023

Applications, displays and FoD solution uses

• Bottleneck of FoD growth includes feasibility for display, Apple’s adoption, and application.
• Application: FoD uses are concentrated to smartphones. Biometric ID is rare in non-Apple tablets. CFP is more popular in notebooks.
• Module ASPs in June 2023: Side-mounted CFP at $0.7, optical lens FoD at $1.2, microlens FoD at $3, and ultrasonic FoD at $5-$10.

Biometric ID solutions and penetration in applications

Smartphone (96% in 2022)
Entry Mid-low Midrange and high-end High-end High-end mostly

a-Si TFT LCD LTPS TFT LCD Rigid OLED Flexible OLED Foldable OLED Apple’s (OLED mostly)
CFP or password Side-mounted CFP CFP reduced CFP reduced, mostly FoD solutions Side-mounted CFP Face ID

$6-9 / $0.7 $9-13 / $0.7 $15-18 / $1.2 $21-$38 (LTPS+3D lens in China) / $1.2-$10 $90 (6.x”) / $0.7

Tablet PC (58% in 2022)

TFT LCD TFT LCD Rigid OLED, less Apple’s TFT LCD
Password only Side-mounted CFP CFP or optical lens FoD Face ID or Touch ID

Notebook PC (41% in 2022)

TFT LCD TFT LCD (rigid AMOLED, less) Apple’s TFT LCD
Password only Windows Hello camera or CFP (Secured-Core PC) Touch ID (CFP)

Source: Omdia Display Fingerprint Technology and Market Report 1H23, published in 3Q23

22 Copyright © 2023. All rights reserved. Informa Tech, a trading division of Informa PLC
Information Classification: General
 第44回ディスプレイ産業フォーラム | 45th Display Japan Forum
2023年7⽉27⽇～28⽇ | バーチャル形式にて開催 | July 27-28, 2023

More words: Higher perspective needed

● Smartphone: AMOLED & challenges

● IT applications: Form factors & fusion
● Automotive: Touch display & size trend
● FoD market: Decline for phone demand

Copyright © 2023. All rights reserved. Informa Tech, a trading division of Informa PLC
 第45回ディスプレイ産業フォーラム | 45th Display Japan Forum
2023年7⽉27⽇～28⽇ | バーチャル形式にて開催 | July 27-28, 2023

What have we experienced and where to go?

• Replacement demands could be back since 2H24. But high-level factors are still influential.
• 2020 - 2021: IT/CE set shipments were benefited from pandemic (X-from-home trends) and overbooking (optimistic for 2021-22).
• 2022 - 2023 1H: Inventory clean-up continued for stocks (since 2021), IT/CE market saturation and slow replacement demand.
• 2023: Users prioritize budgets for necessity and inflation instead of IT/CE. Rush orders are preferred because of no confidence.
• 2024 2H - 2025: IT/CE inventory will be lower. Inflation will be adapted as wages raised. Replacement demand will come again.

IT/CE supply chain impact and high-level factors

Inventory clean-up more critical High-level factors more influential

2020 2021 2022 – 2023 1H 2023 2H 2024 2025

Pandemic Overbooking Port & logistic LTM contract pending TSMC U/T lower Friction and cost increasing
and panic in 1H continued in 1H congestion or penalty for wafers till end of 3Q23* due to China +1 supply chain

Rising IT/CE Shipments Busy with clean-up for overbooking Rush orders and IT/CE inventory getting tight
demands in 2H declining in 2H and X-from-home trend finished budget priority Replacement demand in 2H24

Busy with pandemic and shipping Russian invasion, Fed QT & inflation, China recovery Supply chain de-risking then re-built

* TSMC 3Q23 IR (July 20th): Stock clean-up lasts in 3Q23, and China market is worse than expected.
Source: Omdia Touch Panel Market Tracker

24 Copyright © 2023. All rights reserved. Informa Tech, a trading division of Informa PLC
Information Classification: General
 第45回ディスプレイ産業フォーラム | 45th Display Japan Forum
2023年7⽉27⽇～28⽇ | バーチャル形式にて開催 | July 27-28, 2023

Exodus of the global supply chain

De-risking supply chain & impacting macro-economics for geo-political concerns Flying geese paradigm (Akamatsu Kaname, 1935)

• Demographic dividend Supply chain & ecosystem

Arctic competition for routes & resource ESG & carbon tax • Labor & production cost
• Transport infrastructure Rising wealth from exportation

Invasion to Ukraine Labor & production cost up for re-location & hollowing-out
reshaping EU & NATO
US East US West
Macro-economic risks for FDI, Struggling for industry upgrade Or, middle-income trap?
exportation & consumption in China

Supply chain de-risking & re-organization

Geo-political conflict in Asia & EU So-called efficient “global supply chain” gone….
China strength in Africa
De-risking & forming trusted group

Security-sensitive Labor-intensive

• From SKD/CKD assembly to regional ecosystem Domestic Friend- China India & ASEAN
• From centralizing in China to diversifying in others for safety shoring China +1 for de-risking

Source: Google (map), Omdia

25 Copyright © 2023. All rights reserved. Informa Tech, a trading division of Informa PLC
Information Classification: General
 Disclaimer

Thank you The Omdia research, data and information referenced herein (the “Omdia Materials”) are the copyrighted
property of Informa Tech and its subsidiaries or affiliates (together “Informa Tech”) or its third party data
providers and represent data, research, opinions, or viewpoints published by Informa Tech, and are not
representations of fact.

The Omdia Materials reflect information and opinions from the original publication date and not from the date
of this document. The information and opinions expressed in the Omdia Materials are subject to change
without notice and Informa Tech does not have any duty or responsibility to update the Omdia Materials or
Calvin Hsieh this publication as a result.

DISPLAY | Omdia | Informa Tech Omdia Materials are delivered on an “as-is” and “as-available” basis. No representation or warranty, express
or implied, is made as to the fairness, accuracy, completeness, or correctness of the information, opinions,
[email protected]
and conclusions contained in Omdia Materials.

To the maximum extent permitted by law, Informa Tech and its affiliates, officers, directors, employees,
agents, and third party data providers disclaim any liability (including, without limitation, any liability arising
from fault or negligence) as to the accuracy or completeness or use of the Omdia Materials. Informa Tech
will not, under any circumstance whatsoever, be liable for any trading, investment, commercial, or other
decisions based on or made in reliance of the Omdia Materials.

Get in touch
Americas Europe, Middle East & Africa Asia Pacific
[email protected] [email protected] [email protected]
08:00 – 18:00 GMT -5 8:00 – 18:00 GMT 08:00 – 18:00 GMT + 8

Copyright © 2023. All rights reserved. Informa Tech, a trading division of Informa PLC