SEMI Flat-Panel Display Division Phosphor Technology Center of Excellence TABLE 10 MAJOR ACTIVITIES OF PTCOE Ferroelectric Liquid

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1 INTRODUCTION... XVIII STUDY GOALS AND OBJECTIVES... XVIII REASONS FOR DOING THIS STUDY... XVIII CONTRIBUTIONS TO THE STUDY AND FOR WHOM... XVIII SCOPE AND FORMAT... XIX METHODOLOGY... XIX INFORMATION SOURCES... XIX OTHER RELEVANT BCC PUBLICATIONS... XX BCC ONLINE SERVICES... XX DISCLAIMER... XX SUMMARY... XXI SUMMARY TABLE GLOBAL FORECAST OF WORLDWIDE SHIPMENTS OF ELECTRONIC DISPLAYS, THROUGH 2010 ($ BILLIONS)... XXII SUMMARY FIGURE VALUE OF WORLDWIDE SHIPMENTS OF ELECTRONIC DISPLAYS, ($ BILLIONS)... XXII OVERVIEW... 1 TYPES OF DISPLAYS... 1 TABLE 1 KEY ELECTRONIC DISPLAY TECHNOLOGIES... 2 DISPLAY APPLICATIONS... 3 TABLE 2 KEY ELECTRONIC DISPLAY APPLICATIONS... 3 DISPLAY APPLICATIONS (CONTINUED)... 4 INDUSTRY CHARACTERISTICS AND COMPETITIVENESS... 5 DISPLAY INDUSTRY STATUS... 5 CRT VERSUS FLAT PANEL... 5 DISPLAY MATERIALS REPORT INDICATES CHANGING GROWTH TRENDS... 6 TABLE 3 GLOBAL FORECAST OF ELECTRONIC DISPLAY MATERIALS BY TYPE, THROUGH 2010 ($ MILLIONS)... 7 CONTINUED EXPANSION OF FLAT PANEL TECHNOLOGY... 7 TABLE 4 OBSERVATIONS ABOUT EXPANDING FLAT PANEL DISPLAYS... 8 MIGRATION OF DISPLAY MANUFACTURING... 8 TABLE 5 SHARE OF DISPLAY MANUFACTURING BY REGION, (%)... 9 FIGURE 1 DISPLAY MANUFACTURING BY REGION, (%) DISPLAY CONSUMPTION IS STEADY TABLE 6 SHARE OF DISPLAY CONSUMPTION BY REGION, (%) FIGURE 2 DISPLAY CONSUMPTION BY REGION, (%) TABLE 7 MAJOR CHARACTERISTICS OF THE DISPLAY INDUSTRY GOVERNMENT/INDUSTRY DISPLAY SUPPORT U.S. DISPLAY ACTIVITY The U.S. Display Consortium TABLE 8 USDC MISSION OBJECTIVES Technology Road Maps and Standards USDC Display-Related Programs TABLE 9 REPRESENTATIVE DISPLAY-RELATED USDC PROGRAMS... 15

2 SEMI Flat-Panel Display Division Phosphor Technology Center of Excellence TABLE 10 MAJOR ACTIVITIES OF PTCOE Ferroelectric Liquid Crystal Materials Research Center Industry Relations Advanced Technology Program Department of Defense SBIR Program Impact of U.S. Display Activities EUROPEAN DISPLAY ACTIVITIES TABLE 11 MAJOR GOALS OF EUROPEAN DISPLAY MANUFACTURING European Commission Programs Flexible Display Project TABLE 12 PLANS FOR THE FLEXIBLE DISPLAY PROJECT The University of Ghent TABLE 13 PROJECTS OF THE UNIVERSITY OF GHENT LIQUID CRYSTAL GROUP Individual Private Company Display Research TABLE 14 SELECTED EUROPEAN-BASED COMPANIES ENGAGED IN DISPLAY ACTIVITIES Covion Organic Semiconductors Schott Glass NV Philips Impact of European Display Activity ASIA-PACIFIC DISPLAY ACTIVITIES Japan TABLE 15 HOW THE JAPANESE DISPLAY INDUSTRY DEVELOPED Japan s Current Position Republic of Korea Taiwan Singapore s Activities Background TABLE 16 GOALS OF THE SINGAPORE INSTITUTE OF MATERIALS RESEARCH AND ENGINEERING Other Asian Activities DISPLAY GOVERNMENT/INDUSTRY SUPPORT SUMMARY ECONOMIC ISSUES AND THEIR IMPACT ON DISPLAYS UNITED STATES TABLE 17 ECONOMIC LONG-TERM ASSUMPTIONS FOR THE U.S. ECONOMY AND DISPLAY MATERIALS EUROPE ASIA-PACIFIC TABLE 18 ASIA-PACIFC REGION ECONOMIC IMPACT ON DISPLAYS ECONOMIC ASSESSMENT SUMMARY INDUSTRY STANDARDS VIDEO ELECTRONICS STANDARDS ASSOCIATION (VESA) VESA Standards TABLE 19 REPRESENTATIVE VESA STANDARDS FOR DISPLAYS International Members and Participation... 33

3 NIST FLAT PANEL DISPLAY LABORATORY SEMI FPD STANDARDS PROGRAM IMPACT OF STANDARDS ON COMPETITIVENESS MARKET GROWTH FACTORS DRIVING FORCES FOR GROWTH IMPACT OF MARKET GROWTH FACTORS TABLE 20 IMPACT OF KEY COMPETITIVE FACTORS ON THE GROWTH OF THE DISPLAY INDUSTRY (%) DISPLAY PATENT ANALYSIS PATENTS BY TECHNOLOGY TABLE 21 PATENTS BY DISPLAY TECHNOLOGY, PATENTS BY TECHNOLOGY (CONTINUED) PATENTS BY REGION TABLE 22 DISPLAY PATENTS BY REGION, PATENTS BY ASSIGNEE TABLE 23 ASSIGNEES WITH SEVEN OR MORE PATENTS, SAMPLE ABTRACTS LCD DEVICE WITH A PARTICULAR HOUSING AND FLEXIBLE CIRCUIT A PLASMA DISPLAY DEVICE WITH EFFICIENT HEAT CONDUCTIVITY ACTIVE MATRIX OLED WITH SIMPLE FABRICATION PROCESS FIELD EMISSION DEVICE USING CARBON NANOTUBES ELECTROPHORETIC DEPOSITION OF CARBON NANOTUBES LEVELING THERMAL STRESS VARIATIONS IN A MEMS DEVICE THE CRT MARKET THE CRT IN CHANGES IN CRT MATERIALS INDICATE SLOWDOWN IN DEMAND A NEW, SLIM DESIGN RAISES POSSIBILITIES FOR SALES GROWTH Samsung s Award Winning SlimFit Model LG. Philips is Also a Player CRT MARKET STRUCTURE LEADING CRT MANUFACTURERS TABLE 24 LEADING CRT MANUFACTURERS CRT TECHNOLOGY BASIC OPERATION TABLE 25 BASIC COMPONENTS OF A CRT Color Capability CONTINUING CRT TECHNOLOGY DEVELOPMENTS... 49

4 Flat-Screen CRT Displays TABLE 26 MAJOR ADVANTAGES OF A FLAT-FACED CRT Improved Electron Guns Better Contrast CRT COMPARED TO FLAT PANEL DISPLAYS TABLE 27 COMPARISON OF CRT TO MAJOR FPD TECHNOLOGIES CRT APPLICATIONS TELEVISION Direct View Projection TV TABLE 28 WORLDWIDE CRT PROJECTION MARKET BY USER, TABLE 29 DEMAND CHARACTERISTICS FOR CRT TV TECHNOLOGY BY APPLICATION COMPUTER MONITORS PC Desktop Monitors TABLE 30 KEY FACTORS IN LCD MONITOR SHIPMENTS EXCEEDING CRT Terminals Industrial and Medical Monitors INSTRUMENTATION CRT MARKET ASSESSMENT DECLINING GROWTH TRENDS TABLE 31 GLOBAL FORECAST FOR SHIPMENTS OF CRT DISPLAYS, (UNITS 000) Changing Market Share TABLE 32 GLOBAL MARKET SHARE FOR CRT/FLAT PANELS IN DESKTOP MONITORS, (%) Key CRT Market Limitations Some Pluses for CRT Technology TABLE 33 FORECAST ASSUMPTIONS GROWTH OF CRT DISPLAYS FORECAST CRT SHIPMENTS TABLE 34 GLOBAL FORECAST OF CRT DISPLAY SHIPMENTS, THROUGH 2010 (UNITS 000) FORECAST VALUE OF CRT SHIPMENTS TABLE 35 GLOBAL FORECAST OF CRT DISPLAY SHIPMENT VALUE, THROUGH 2010 ($ MILLIONS) FIGURE 3 GLOBAL FORECAST OF CRT DISPLAY SHIPMENTS, 2004 AND 2010 ($ MILLIONS) Forecast Value of CRT Shipments (Continued) THE LIQUID CRYSTAL DISPLAY MARKET THE LCD IN PLASTIC TFT LCD FOR FLEXIBLE DISPLAYS MEDICAL APPLICATIONS EXPAND LCD USAGE Additional Progress in Medical Venues FASTEST RESPONSE TIME LCD MICRODISPLAY OPENS UP SURVEILLANCE MARKET VOIP TELEPHONES TO GET LCD DISPLAYS... 68

5 HOW LARGE CAN TV SCREENS GET? DON T FORGET INDUSTRIAL NEEDS LCDS WITH MULTIFUNCTION ACTIVITY SUMMARY LCD MARKET STRUCTURE LEADING LCD MANUFACTURERS TABLE 36 LEADING LCD DISPLAY MANUFACTURERS LCD TECHNOLOGY HOW LIQUID CRYSTAL DISPLAYS WORK TWISTED-NEMATIC TECHNOLOGY SUPER-TWISTED NEMATIC TECHNOLOGY FERROELECTRIC LCD TECHNOLOGY PASSIVE MATRIX LCDS TABLE 37 ADVANTAGES OF PASSIVE MATRIX LCD TECHNOLOGY ACTIVE MATRIX LCDS TABLE 38 ADVANTAGES OF THE ACTIVE MATRIX LCD TECHNOLOGY Transmissive and Reflective Displays POLYSILICON TECHNOLOGY TABLE 39 ADVANTAGES OF POLYSILICON LCD TECHNOLOGY TRENDS IN LIQUID CRYSTAL DEVELOPMENT TABLE 40 MAJOR TRENDS IN LIQUID CRYSTAL RESEARCH IN-PLANE SWITCHING AND VERTICAL ALIGNMENT LIQUID CRYSTAL ON SILICON LIQUID CRYSTAL DISPLAY APPLICATIONS TABLE 41 LIQUID CRYSTAL DISPLAY APPLICATIONS BY TYPE OF MATERIAL TELEVISION Direct View Projection Television TABLE 42 DEMAND CHARACTERISTICS OF LCD TV TECHNOLOGY BY APPLICATION COMPUTER MONITORS Portables and Laptops TABLE 43 KEY FACTORS IN THE RISING DEMAND FOR PORTABLE COMPUTERS Desktop Monitors TABLE 44 MOST COMMON APPLICATIONS OF LCD DESKTOP MONITORS INDUSTRIAL AND MEDICAL MONITORS TABLE 45 LCD APPLICATIONS IN THE MEDICAL/INDUSTRIAL MARKETS HANDHELD DISPLAYS Microdisplays TABLE 46 LCD MICRODISPLAY TECHNOLOGIES INSTRUMENTATION LCD MARKET ASSESSMENT LCD MONITOR GROWTH TREND TABLE 47 GLOBAL SHIPMENTS FOR LCD AND CRT COMPUTER MONITORS, THROUGH 2004 (UNITS 000) Exceptional TV Growth TABLE 48 GLOBAL DEMAND FOR LCD TELEVISION, THROUGH 2004 (UNITS 000)... 87

6 Market Drivers TABLE 49 FORECAST ASSUMPTIONS LCD MARKET FORECAST LCD DISPLAY SHIPMENTS TABLE 50 GLOBAL FORECAST OF LCD DISPLAYS SHIPMENTS, THROUGH 2010 (UNITS 000) Multiple Displays FORECAST VALUE OF LCD SHIPMENTS TABLE 51 ESTIMATED AVERAGE PRICES OF LCD PANELS BY APPLICATION, ($) TABLE 52 GLOBAL FORECAST OF LCD DISPLAY SHIPMENT VALUE, THROUGH 2010 ($ MILLIONS) FIGURE 4 VALUE OF WORLDWIDE LCD DISPLAY SHIPMENTS, ($ MILLIONS) Forecast Value of LCD Shipments (Continued) THE PLASMA DISPLAY MARKET THE PLASMA DISPLAY IN Giants Get Together To Expand Plasma Business DVD Screen Savers Prevent Screen Burn Better Contrast Levels Show High Quality Samsung Shows Largest PDP at Global Road Show Plasma Displays for Digital Signage Price Points Help Sell $12 Million in Plasma Displays in One Week SUMMARY PLASMA MARKET STRUCTURE LEADING PLASMA MANUFACTURERS TABLE 53 LEADING PLASMA DISPLAY MANUFACTURERS PLASMA TECHNOLOGY AC VERSUS DC DISPLAYS TABLE 54 ADVANTAGES OF THE AC PLASMA PANEL BASIC OPERATION Display Addressing TABLE 55 TYPICAL LAYER-BY-LAYER PLASMA STRUCTURE EMERGING PLASMA DEVELOPMENTS Alternate Lighting of Surfaces Improving Image Quality PLASMA DISPLAY APPLICATIONS TELEVISION TABLE 56 DEMAND CHARACTERISTICS OF PLASMA TV TECHNOLOGY PUBLIC INFORMATION DISPLAY MONITORS TABLE 57 PUBLIC INFORMATION ADVANTAGES OF PLASMA DISPLAYS DIGITAL SIGNAGE Touch Screens and Ruggedized Monitors TABLE 58 KEY PLASMA MONITOR APPLICATIONS IN THE INDUSTRIAL AND COMMERCIAL MARKETS PLASMA MARKET ASSESSMENT

7 PLASMA MONITOR GROWTH TREND TABLE 59 GLOBAL PLASMA DISPLAY SHIPMENTS, THROUGH 2004 (UNITS 000) Market Drivers TABLE 60 FORECAST ASSUMPTIONS GROWTH OF PLASMA DISPLAYS FORECAST PLASMA DISPLAY SHIPMENTS TABLE 61 GLOBAL FORECAST OF PLASMA DISPLAY SHIPMENTS, THROUGH 2010 (UNITS 000) FORECAST VALUE OF PLASMA SHIPMENTS TABLE 62 FORECAST VALUE OF PLASMA SHIPMENTS, THROUGH 2010 ($ MILLIONS) FIGURE 5 GLOBAL FORECAST OF PLASMA DISPLAY SHIPMENT VALUE, ($ MILLIONS) ORGANIC LIGHT-EMITTING DISPLAY MARKET THE OLED IN Visor for Head Tracking and 3D Stereovision R&D Contract for Roll-to-Roll Manufacturing More Polymer Displays Enter Market Pilot Line for P-OLEDs OLEDs Enter Surveillance Market Samsung Shows 40-In. OLED CDT Produces 14-in. Color P-OLEDs SUMMARY OLED MARKET STRUCTURE LEADING OLED MANUFACTURERS TABLE 63 LEADING OLED DISPLAY MANUFACTURERS Small Molecules in Front BASIC OLED TECHNOLOGY OLED DISPLAY FABRICATION TABLE 64 BASIC OLED STRUCTURE FABRICATION METHODS PLED Fabrication TABLE 65 STRUCTURE OF A TYPICAL PLED DISPLAY Ink-Jet Printing FLEXIBLE DISPLAYS TABLE 66 BENEFITS OF ORGANIC ELECTRONICS Organic Thin-Film Transistors OLED APPLICATIONS TABLE 67 KEY APPLICATIONS OF DISPLAYS MADE FROM ORGANIC MATERIALS APPLICATION LEADERS OLED TECHNOLOGY BENEFITS TABLE 68 MAJOR ADVANTAGES OF OLED TECHNOLOGY OLED MARKET ASSESSMENT RECENT OLED GROWTH RATES TABLE 69 WORLDWIDE SHIPMENTS OF OLED DISPLAYS, THROUGH Major Market Thrust Continuing Rapid Growth

8 TABLE 70 FORECAST ASSUMPTIONS FOR OLED GROWTH FORECAST OLED SHIPMENTS TABLE 71 GLOBAL FORECAST OF OLED DISPLAY SHIPMENTS, THROUGH 2010 (UNITS 000) FORECAST VALUE OF OLED SHIPMENTS TABLE 72 ESTIMATED AVERAGE PRICES OF OLED PANELS BY APPLICATION, ($) TABLE 73 GLOBAL FORECAST FOR OLED DISPLAY SHIPMENTS, THROUGH 2010 ($ MILLIONS) FIGURE 6 GLOBAL FORECAST OF OLED DISPLAY SHIPMENTS, ($ MILLIONS) Forecast Value of OLED Shipments (Continued) INORGANIC LIGHT-EMITTING DISPLAY MARKET MARKET DEFINITION THE LED IN Daktronics Gets Baseball Projects for 2005 Season LED Display for Soccer and Advertising Flexible LED System Fits Any Stadium High-Brightness LEDs Continue To Make Progress SUMMARY OF LED IN LED MARKET STRUCTURE LEADING LED MANUFACTURERS TABLE 74 LEADING LED DISPLAY MANUFACTURERS LED TECHNOLOGY LED FABRICATION LED MATERIALS AND PROCESSES MATERIALS Color Qualities High-Brightness Materials TABLE 75 COMPARISON OF TRADITIONAL AND HIGH-BRIGHTNESS LEDS TABLE 76 MAJOR LED MATERIALS USED IN DISPLAYS LED APPLICATIONS LARGE-AREA COLOR DISPLAYS TABLE 77 KEY ADVANTAGES OF LEDS IN LARGE-AREA DISPLAYS DISPLAY AND INSTRUMENT APPLICATIONS TABLE 78 LEADING LED INSTRUMENT AND REGULAR DISPLAY APPLICATIONS LED MARKET ASSESSMENT LARGE-AREA DISPLAY POTENTIAL RECENT LED GROWTH RATES TABLE 79 GLOBAL SHIPMENTS OF LED DISPLAYS, THROUGH 2004 (000 UNITS) INSTRUMENT AND GRAPHIC DISPLAY POTENTIAL TABLE 80 FORECAST ASSUMPTIONS GROWTH OF LED DISPLAYS FORECAST LED DISPLAY SHIPMENTS TABLE 81 GLOBAL FORECAST LED DISPLAY SHIPMENTS, THROUGH 2010 (000 UNITS) FORECAST VALUE OF LED DISPLAY SHIPMENTS

9 TABLE 82 GLOBAL FORECAST OF LED DISPLAY SHIPMENT, THROUGH 2010 ($ MILLIONS) FIGURE 7 GLOBAL FORECAST OF LED DISPLAY SHIPMENTS, ($ MILLIONS) Forecast Value of LED Display Shipments (Continued) VACUUM FLUORESCENT DISPLAY MARKET THE VFD IN VFD MAINTAINS ITS SOLID REPUTATION VFD INDUSTRY STRUCTURE TABLE 83 LEADING VFD DISPLAY MANUFACTURERS VFD TECHNOLOGY PROPERTIES AND FABRICATION Other Configurations Color Typical Characteristics TABLE 84 CHARACTERISTICS OF VACUUM FLUORESCENT DISPLAYS TECHNOLOGICAL TRENDS Active Matrix Technology TABLE 85 IMPROVEMENTS IN VFDS USING ACTIVE-MATRIX TECHNOLOGY Rib Grid Displays VFD APPLICATIONS GRAPHIC DISPLAY APPLICATIONS TABLE 86 MAJOR APPLICATIONS FOR GRAPHIC VFD DISPLAYS INSTRUMENT APPLICATIONS VFD MARKET ASSESSMENT MARKET POTENTIAL RECENT GROWTH TRENDS TABLE 87 GLOBAL SHIPMENTS OF VFD DISPLAYS, THROUGH 2004 (000 UNITS) TABLE 88 FORECAST ASSUMPTIONS GROWTH OF VFD DISPLAYS FORECAST SHIPMENTS OF VACUUM FLUORESCENT DISPLAYS TABLE 89 GLOBAL FORECAST OF VACUUM FLUORESCENT DISPLAY SHIPMENTS, THROUGH 2010 (000 UNITS) VALUE OF VFD SHIPMENTS TABLE 90 GLOBAL FORECAST OF VFD SHIPMENTS, THROUGH 2010 ($ MILLIONS) FIGURE 8 GLOBAL FORECAST OF VFD DISPLAY SHIPMENTS VALUE, ($ MILLIONS) EMERGING TECHNOLOGY DISPLAY MARKET EMERGING DISPLAY ACTIVITY IN MOTOROLA DEBUTS NANO-EMISSIVE FLAT-DISPLAY PROTOTYPE OTHER EMERGING DISPLAY HIGHLIGHTS INDUSTRY STRUCTURE TABLE 91 KEY MANUFACTURERS OF EMERGING DISPLAYS Market Shares to be Determined

10 EMERGING TECHNOLOGY BASIC DLP TECHNOLOGY DLP Applications TABLE 92 PROJECTION AND DISPLAY DLP APPLICATIONS BASIC SCANNED-BEAM TECHNOLOGY Scanned-Beam Display Applications TABLE 93 SCANNED BEAM DISPLAY APPLICATIONS INTERFEROMETRIC MODULAR TECHNOLOGY Applications for Modular Technology NANOSTRUCTURED FILMS Display Fabrication TABLE 94 QUALITIES OF A NANOCHROMIC DISPLAY Key Materials TABLE 95 MAJOR STRUCTURE OF NANOCHROMIC DISPLAYS QUANTUM DOTS Unique Properties Quantum Confinement Tunable Energies TABLE 96 KEY PROPERTIES OF QUANTUM DOTS Impact on Electroluminescence and Displays CARBON NANOTUBES TABLE 97 PROPERTIES OF CARBON NANOTUBES CNTs in Displays EMERGING TECHNOLOGY MARKET ASSESSMENT TRENDS IN EMERGING TECHNOLOGY DISPLAYS TABLE 98 EMERGING DISPLAY TECHNOLOGY STATUS A REALISTIC LOOK AT EMERGING TECHNOLOGY GROWTH FACTORS TABLE 99 STEPS TO COMMERCIALIZATION OF EMERGING DISPLAYS MEMS Unit Growth Rate TABLE 100 GLOBAL SHIPMENTS OF MEMS DISPLAY UNITS FOR FPDS, THROUGH 2004 (THOUSAND UNITS) Major Drivers TABLE 101 FORECAST ASSUMPTIONS FOR GROWTH OF EMERGING DISPLAYS FORECAST FOR EMERGING COMPONENTS TABLE 102 FORECAST FOR WORLDWIDE SHIPMENTS OF EMERGING DISPLAYS BY TYPE AND DISPLAY TYPE, THROUGH 2010 (THOUSAND UNITS) FORECAST FOR THE VALUE OF EMERGING COMPONENT SHIPMENTS TABLE 103 FORECAST FOR THE VALUE OF EMERGING DISPLAY COMPONENT SHIPMENTS BY TYPE AND DISPLAY TYPE, THROUGH 2010 ($ MILLIONS) FIGURE 9 GLOBAL FORECAST OF EMERGING DLP SHIPMENTS, ($ MILLIONS) COMPANY PROFILES AU OPTRONICS CORP CAMBRIDGE DISPLAY TECHNOLOGY

11 DUPONT DISPLAYS EMAGIN CORP FUTABA CORP HITACHI DISPLAYS, LTD INFOCUS KOPIN CORP LG ELECTRONICS, INC PIONEER COMPANIES PLANAR TECHNOLOGY ROYAL PHILIPS ELECTRONICS SAMSUNG ELECTRONICS CO., LTD SHARP ELECTRONICS SONY CORP TEXAS INSTRUMENTS UNIVERSAL DISPLAY CORP

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