According to research and development agency IHS, active organic light-emitting diode (AMOLED) panels are currently more expensive to manufacture than liquid crystal display (LCD) panels due to the cost of production lines. However, the material costs for AMOLEDs could be lower than those of LCDs in the long run.
AMOLED panel cost future or lower than LCD
The IHS explained that LCD panels require a backlight module, which adds to their overall cost, while AMOLED panels do not need this component, making them potentially more cost-efficient in terms of materials. However, as AMOLED manufacturing costs have dropped significantly over the years, some LCD manufacturers have started using cheaper conventional amorphous silicon panels instead of high-cost low-temperature polycrystalline silicon (LTPS) panels to stay competitive.
According to the latest cost analysis report from IHS, there is currently around a 30% cost difference between AMOLED and LCD panels for a 5.5-inch high-resolution full HD smartphone display.
Additionally, most AMOLED panels are still produced on 5.5th generation production lines, while LTPS LCDs are made on 6th generation lines. If AMOLED technology were to shift to 6th generation lines, the cost reduction could be even more significant.
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