LCD out countdown! OLED panel costs less than LCD

According to the research and development agency IHS, taking into account the cost of the production line, active organic light-emitting diode (AMOLED) panels have a higher manufacturing cost than liquid crystal display panels (LCDs), but the material cost of AMOLEDs may be lower than that of liquid crystal panels.

The IHS explained that LCD panels require a backlight module, but AMOLED does not require a backlight module, and the cost of component materials is naturally reduced. However, as the manufacturing cost of AMOLED panels has dropped significantly, LCD manufacturers have tried to adopt cheaper conventional amorphous germanium panels to reduce the use of high-quality, high-priced low-temperature polycrystalline germanium panels (LTPS) to maintain cost competitiveness.

The IHS latest cost analysis report shows that for a 5.5-inch high resolution full HD smart phone display screen, there is approximately a 30% cost gap between AMOLED and LCD panels.

IHS said that most AMOLED panels are currently manufactured by the 5.5th generation line factory, while the low temperature polycrystalline germanium liquid crystal panel (LTPS LCD) is manufactured in the 6th generation line factory. If AMOLED is manufactured in the 6th generation line factory, the cost reduction will be Bigger.

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