From 2006 to 2025, evolution history of 8 generation, 8.5 generation and 8.6 generation panel plants

2022-05-17

Why are 8.6 generation TFT factories so popular, especially in China?Why don't new panel manufacturers simply adopt the glass substrate sizes that have been around for years and build traditional 8.5 generation factories?Is there a specific reason for the transition from 8.5 to 8.6?This is a topic that many equipment manufacturers discuss with panel manufacturers.

Over the past two decades, the generation of TFT LCDS (also expressed in glass substrate sizes) has evolved from generation 1 to generation 10.

Due to product differentiation, process engineering and niche market objectives, panel manufacturers choose special glass substrate sizes and invent new generation sizes with small values derived from existing glass substrate sizes (e.g., line 7, line 8 and line 10) (e.g., line 7.5, line 8.5 and line 10.5).Due to heavy investment and the acceptance of these new sizes by new entrants in the TFT LCD market (for plant construction and capacity construction), these special derivatives have become mainstream factories.

Line 8.5 and Line 8.6 are now mainstream plants with production capacity for TFT LCD, WOLED and QD OLED panels.The history and evolution of these generations of panel factories are shown in Figure 1

Figure 1: History of TFT panel plants in line 8, 8.5 and 8.6 from 2006 to 2025

From 2006 to 2025, evolution history of 8 generation, 8.5 generation and 8.6 generation panel plants

Note: "MG size" refers to the size of the parent glass substrate

Source: Omdia

2006: The first eight-generation factory

While Korean panel makers like Samsung Display and Lg Display, as well as Chinese panel makers like AUO and Chimei (later renamed Innolun), chose seven generation line (187x2200mm) and 7.5 generation line (1950x2250mm) glass substrate sizes to produce 4xinch LCD TV panels,It has good economic cutting and panel efficiency, but Sharp has opted for a higher generation line, expanding its glass substrate size to cut into larger TV panels.

Sharp pioneered its eight-generation factory with a 2160x2460mm glass substrate.It is an extension of the seven generation line factory and can produce the following products:

32 inch panel, 18 pieces, 98% cutting efficiency

46 "panel, 8 pieces, 90% cutting efficiency

52 "panel, 6 pieces, cutting efficiency of 86%

60 - or 62-inch panels, 3 pieces, 60% cutting efficiency

60 "MMG (sleeve cut), 3 pieces, and 32" 3 pieces, cutting efficiency is 85%

This eight-generation line factory is the first in the world and is designed to compete with 7-7.5 generation line factories, which produce 12-cut 32-inch panels, 6-cut 46-inch panels, and 3-cut 52-inch panels.Sharp is at the forefront of LCD TV panel production, and its eight-generation line launch sets a model for reference for years to come.

2007: Samsung displays the first 8.5 generation factory

Shortly after the production of sharp's 8GEN line at its factory, Samsung Display revamped the 8gen line idea, expanding its substrate size from 2160x2400 mm to 2200x2500 mm and renaming it "8.5Gen Line".

Samsung Display began mass production of the following products at its generation 8.5 plant:

32 "panel, 18 pieces cut, panel efficiency 92%

46-49 inch panels, 8 piece cuts, 85 percent to 90 percent panel efficiency

55 inch face, 6 pieces cut, panel efficiency 91%

65 "panel, 3 pieces cut, panel efficiency of 64%

65 "MMG, three cuts, and 32" three cuts, 94% panel efficiency

With the new 8.5-generation factory, Samsung Display can produce 46-49-inch panels to compete with 46-inch panels (similar cutting efficiency and depreciation cost), 55-inch panels to compete with 52-inch panels (similar cutting efficiency and depreciation cost), and 65-inch panels to compete with 62-inch panels.

The concept is to expand the glass substrate, reduce the space for craft lines, and produce larger-sized panels that can compete in the TV market (consumers are price - and size-sensitive).

Samsung display's 8.5-generation factory immediately gained popularity and has been adopted by many panel manufacturers since 2007.Lg Display and AU Optronics started mass production of 8.5-generation TFT LCD plants in 2009, while Innolux (then known as Chimei) started mass production of 8.5-generation TFT LCD plants in 2010.

When TFT LCD panel manufacturers in mainland China decided to expand production to 8-generation line and above, boe and Huaxin both chose 8.5-generation line factories to enter the LCD TV panel market.Boe and Huaxing's line 8.5 plants started operation in 2011.

2007-2017: The prevalence of the 8.5 generation line and competition between 46, 47, 48 and 49 inch panels

During this decade, although the 8.5-generation line factories did not further develop to the new generation line, panel manufacturers continued to expand their 8.5-generation line capacity;8.5 generation factories become the mainstream of LCD TV panel production.The 8.5 generation TFT array production area also grew from 1.1 million square meters in 2007 to 135.7 million square meters in 2017.

At the same time, competition is fierce, especially for the 46 - and 48-inch and 47 - and 49-inch panels, which are manufactured in the 8.5 generation factory.However, panel manufacturers have reduced the space for panel design lines and craftsmanship to achieve an inch larger size than their peers.Samsung Display and AU Optronics started producing 46 inches, then Lg Display started producing 47 inches.Samsung Display gave back 48 inches, while Lg Display countered by increasing its panel size to 49 inches.Competition among 8.5-generation panel manufacturers is harsh and extensive, but there is no doubt that 55-inch panels become the mainstream of 50-inch and above LCD TV sizes, as 8.5-generation line factories promote the production of 55-inch panels.At the same time, LCD manufacturers in Mainland China use their 8.5-generation factories to produce a large number of 32-inch panels, driving the popularity of this panel size in the market.

2012: Lg Display began production of the 8.5-generation WOLED

Lg Display has set a long-term goal of commercializing OLED TV panels with a white OLED structure and oxide TFT backplane.Starting in 2012, Lg Display converted its TFT LCD production at its P8 plant (8.5-generation line, glass substrate size 2250x2600 mm) to oxide TFT backplane and WOLED TV panel production.From 2012 to 2020, Lg Display continuously increased its 8.5-generation WOLED TV panel production capacity by integrating with the traditional 8.5-generation TFT LCD production capacity.Lg Display also built a new 8.5-generation WOLED TV panel factory in Guangzhou, China in 2020.The company's WOLED TV panel production capacity soared to more than 7 million units a year.

From 2015: MMG of 8.5 generation line

MMG stands for multi-type glass, which means panel makers cut panels of different sizes on a single glass substrate.Since every panel manufacturer uses 8.5 generation factories, the competition becomes very homogeneous.Competition on price rather than product differentiation has changed panel manufacturers' thinking;They want to find a solution.Many MMG display panels were developed during this period, many of which are still in mass production today.These MMG display panels are manufactured in the 8.5 generation plant, examples are as follows:

43 "and 23" panels (Samsung display)

42-inch and 21.5-inch panels (AU Optronics and Lg Display)

42.5 and 18.5 inch panels (BOE)

60 and 32 inch panels (Samsung display, Lg Display)

65 and 32 inch panels (Samsung display, Lg Display)

41.5-inch and 23.6-inch panels (Innolux, Huaxing)

65 and 55 inch panels (Lg Display)

42.5-inch panel, 10 pieces cut in 8.5 generation factory (LG Display, BOE)

49 "and 75" panels (Lg Display)

An example of MMG is shown in Figure 2.

Figure 2: MMG in the 8.5 generation line plant

Source: Omdia

2017: Innolux develops 8.6 generation factories, followed by Huike

Fierce competition among 8.5 generation products (such as 32-, 40-42-, 46-49- and 55-inch panels) spurred innolux to change thinking.It began to further expand the 8.5-generation line glass substrate to promote larger panel sizes, avoiding stiff competition while increasing the demand for different sizes.

Innolon held talks with lithographic tool manufacturers (such as Canon) and photomask manufacturers to innovate the size of glass substrates;The idea for its 8.6 generation line is to use a 2250x2600 mm glass substrate, which is slightly larger than the 2250x2500 mm glass substrate for the 8.5 generation line.Here, the length side of the glass substrate is enlarged to produce a larger size panel.

The 8.6 generation factory initiated by Innolux was later copied and carried forward by many LCD panel manufacturers in mainland China, gradually changing the size of LCD TV panels.

8.6 OEM factory produced display panels of the following sizes:

32 inch, 18 piece cut, 87% panel efficiency

50 ", 8 piece cut, panel efficiency 94%

58 inches, 6 cuts, 95% panel efficiency

For 45-inch and 23.6-inch (or 21.5-inch) MMG, 8-piece cut, panel efficiency is 94%

The 50 "size of the 8.6 generation factory is designed to compete with the 48 and 49" sizes of the 8.5 generation factory.The 45 "size of the 8.6 foundry is designed to compete with the 42 and 43" sizes of the 8.5 foundry.As shown in Figures 3 and 4, the 58 "size of the 8.6 generation line factory is intended to compete with the 55" size of the 8.5 generation line factory.

Figure 3: Production of 50 - and 58-inch panels on the 6th generation line

Source: Omdia

图4：8.6代线生产的45英寸和23.6英寸MMG

Source: Omdia

As a niche strategy of the enterprise, the strategy of group innovation has been rewarded, 8.6 generation factory has been widely accepted.

Huike in Mainland China soon followed Innolux's lead, and all huike's 8.X generation factories, from H1 to H5, were equipped with 8.6 generation line.The leading engineers of Rainbow Photoelectric also chose 8.6 generation line.Innolux's 8.6 generation concept started in Taiwan, but has flourished in mainland China.

2018: New entrants in Mainland China imitate the idea of 8.6 generation and make products above 8.6 generation

With the popularity of 50-inch display panels, latecomers (Caihong Optronics, CLP Panda and others) in mainland China have followed with 8.6 generation plants.Both Caihong optronics and CLP Panda's new plants (later acquired by BOE in 2020) use the 8.6 generation line concept;These companies built 8.6 factories instead of 8.5 factories.

Due to various design rules and panel design space, some panel manufacturers have even developed various derived glass substrate sizes for 8.6 generation factories, including 2250x2610 mm and 2290x2620 mm glass substrate sizes;These are called "8.6+ generation ".Some panel manufacturers have even come up with the idea of 2300x2700 mm substrate sizes, called "8.7 generation line ", to produce 65 - and 75-inch products to compete with 10.5 generation line factories.In the end, the 8.7 generation idea didn't materialize.

These activities are shown in tables 1 and 2.

Table 1: The situation of eight generation line, 8.5 generation line, 8.6 generation line and 8.6+ generation line factories in 2018

表2：八代线、8.5代线、8.6代线、8.6+代线工厂情况及切割效率

Source: Omdia

The prevalence of 8.6 generation factories helped the 50-inch size beat out the 46-49 inch size segment as the dominant LCD TV panel size.

- government support is also good for the 8.6 OEM factories;It will be easier to convince the government to build a new tier 8.6 plant than an old tier 8.5 plant.Therefore, when new entrants applied for government support to build new factories in China, they used 8.6 generation factories instead of 8.5 generation factories to convince the government.

8.6 The output of the LCD panel factory continues to grow;The capacity of 8.6 generation plants has grown from 5.1 million square meters in 2017 to 69.4 million square meters in 2022.It is expected to grow further to 122.9 million square meters in 2025.

2019-present: Transferred some generation 8.5 capacity to IT panel

Line 8, line 8.5 and line 8.6 factories were originally designed for LCD TV applications.However, panel manufacturers see the following reasons for producing IT panels (including desktop monitors, laptop and tablet panels) in line 8.5 or Line 8.6 factories:

Good glass substrate cutting efficiency

In response to the risk of LCD TV panel oversupply

The demand for pen and LCD tabletop display panels was stable, while the demand for LCD TV panels fluctuated widely.IT panels are also less price-sensitive

In response to new panel size trends (such as larger desktop monitors and laptop panels) and new aspect ratios

More LCD TV panel production will be transferred to line 10.5 plants so that the capacity of line 8.5 or line 8.6 plants can be used for IT panel production

One example is the so-called new 16:10 aspect ratio laptop panel;These panels cost 10-20% more than 16:9 panels.

The demand for 16:10 panels is growing fast, and faster than the demand for 16:9 panels.This is because of the rising trend towards multi-screens at work.

16:10 panels cost more than traditional 16:9 products due to lower production efficiency and glass utilization.Lower production efficiency leads to increased costs for panel manufacturers.Additional costs can also be incurred if the 16:10 panel uses special T-CON and display driver chips (DDIC).When making 16:10 laptop panels in different generation line factories, the cutting efficiency of 16:10 panels is 10% to 20% lower than that of 16:9 panels.The cost premium also increases if the 16:10 panel features IPS wide viewing Angle, 250 nits high brightness, low power consumption, low blue light, and ultra-light backlight panels.

Table 3:14-inch paneling (cutting) and cost premium for each generation line plant

图5：8.5代线工厂中14英寸16:9与16:10面板的对比

The prevalence of 8.6 generation factories helped the 50-inch size beat out the 46-49 inch size segment as the dominant LCD TV panel size.

- government support is also good for the 8.6 OEM factories;It will be easier to convince the government to build a new tier 8.6 plant than an old tier 8.5 plant.Therefore, when new entrants applied for government support to build new factories in China, they used 8.6 generation factories instead of 8.5 generation factories to convince the government.

8.6 The output of the LCD panel factory continues to grow;The capacity of 8.6 generation plants has grown from 5.1 million square meters in 2017 to 69.4 million square meters in 2022.It is expected to grow further to 122.9 million square meters in 2025.

2019-present: Transferred some generation 8.5 capacity to IT panel

Line 8, line 8.5 and line 8.6 factories were originally designed for LCD TV applications.However, panel manufacturers see the following reasons for producing IT panels (including desktop monitors, laptop and tablet panels) in line 8.5 or Line 8.6 factories:

Good glass substrate cutting efficiency

In response to the risk of LCD TV panel oversupply

The demand for pen and LCD tabletop display panels was stable, while the demand for LCD TV panels fluctuated widely.IT panels are also less price-sensitive

In response to new panel size trends (such as larger desktop monitors and laptop panels) and new aspect ratios

More LCD TV panel production will be transferred to line 10.5 plants so that the capacity of line 8.5 or line 8.6 plants can be used for IT panel production

One example is the so-called new 16:10 aspect ratio laptop panel;These panels cost 10-20% more than 16:9 panels.

The demand for 16:10 panels is growing fast, and faster than the demand for 16:9 panels.This is because of the rising trend towards multi-screens at work.

16:10 panels cost more than traditional 16:9 products due to lower production efficiency and glass utilization.Lower production efficiency leads to increased costs for panel manufacturers.Additional costs can also be incurred if the 16:10 panel uses special T-CON and display driver chips (DDIC).When making 16:10 laptop panels in different generation line factories, the cutting efficiency of 16:10 panels is 10% to 20% lower than that of 16:9 panels.The cost premium also increases if the 16:10 panel features IPS wide viewing Angle, 250 nits high brightness, low power consumption, low blue light, and ultra-light backlight panels.

Table 3:14-inch paneling (cutting) and cost premium for each generation line plant