13 August 2008

Nokia Requires From Display Suppliers
To Be Ready For AMOLED!

Nokia has set the capability of AMOLED (Active Matrix Organic Light Emitting Diode) development as a condition for the selection of its panel suppliers, as the handset vendor expects AMOLED to play a major role in the market in the future, according to industry sources.

Active matrix organic LED displays have been appearing in a number of prototype and production devices recently thanks to their superior viewing angles, refresh rate and low power consumption.

The use of OLED displays in mobile phones is growing but initial adoption has been slow thanks to problems with the lifetime of early screens.

Handset-use panel suppliers have revealed that although Nokia has not adopted AMOLED in any of this products, it has expressed the hope that its panel suppliers should have development and volume production plans for AMOLED panels, the sources said.

It is Nokia's test of its suppliers' R&D capabilities, as well as the handset vendor's aim to maintain long-term partnerships with the suppliers, the sources commented. Capacity for AMOLED displays is currently quite limited, Samsung can only make 1.5 million a year and believes the main market for displays larger than those found on cell phones won’t hot up until 2009.

AU Optronics (AUO) and TPO Display, two panel suppliers for Nokia, are gearing up the development of AMOLED applications, the sources indicated. AUO last month disclosed it was considering reopening its AMOLED line, which was shut down two years ago because of high material costs. AUO president LJ Chen said the company had the technologies and the equipment for AMOLED panel production, and the line could be reopened anytime.

The sources said AUO has now reorganized its AMOLED team, which is expected to unveil new products in the second half of this year.

TPO said it has a team that has been developing AMOLED, and the company also runs a small test line for the segment. But for volume production to start in the future when its technologies mature, TPO will have to install more equipment, the company added.

In terms of shipments of small-size AMOLED panels, Samsung SDI and Chi Mei EL Corporation (CMEL) are currently the major suppliers. TMDisplay has recently also decided to reopen its AMOLED line, with plans to start volume production in October 2009.

is more power-efficient. Theoretically they should also be cheaper than TFT-LCD to produce. Everyone agrees that AMOLED will have the lion share of the OLED market.