According to research and development agency IHS, active organic light-emitting diode (AMOLED) panels currently have a higher manufacturing cost compared to liquid crystal display (LCD) panels when considering the entire production line. However, the material cost for AMOLEDs may actually be lower than that of LCDs. This difference is largely due to the fact that LCD panels require a backlight module, which adds to their overall cost. In contrast, AMOLED panels are self-emissive and do not need this additional component, resulting in a more streamlined and potentially cheaper material structure.
Despite this, the manufacturing process for AMOLEDs has seen significant cost reductions over recent years. As a result, LCD manufacturers have started using more affordable conventional amorphous silicon panels instead of high-cost low-temperature polycrystalline silicon (LTPS) panels to stay competitive in pricing.
IHS’s latest cost analysis report highlights that there is currently about a 30% cost gap between AMOLED and LCD panels for a 5.5-inch high-resolution full HD smartphone display. The cost difference is expected to narrow further as AMOLED technology continues to mature.
Currently, most AMOLED panels are produced on 5.5th generation production lines, while LTPS LCDs are made on 6th generation lines. If AMOLEDs were manufactured on 6th generation lines, the cost reduction could be even more substantial. This shift would likely make AMOLEDs more cost-effective and increase their market share in the future.
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