DisplaySearch Releases Its Highly Anticipated TFT LCD Equipment Report Detailing the Fab Activity, Technology, Machine and Market Trends Driving $11.79 Billion of Revenue in 2006.

KYOTO, Japan -- DisplaySearch, the worldwide leader in display market research and consulting, has released a comprehensive technical and market research report covering all aspects of TFT LCD manufacturing and capital equipment.

This unprecedented 813-page report summarizes the current status of the TFT LCD industry as well as forecasts fab activity, capacity and manufacturing equipment markets over the 10 year period from 1999 to 2009. Furthermore, it reviews process technology and provides detailed information on fundamental technology, trends, players and market share for each major array equipment segment. Color filter, cell and module equipment trends are investigated, and finally the report concludes with a look into the future of TFT LCD manufacturing.

The encyclopedic report is supported by 447 figures, 197 tables and a 14-page glossary of industry terms. Just a few examples of key findings include

* The total costs of a 60,000 substrate per month Generation 8 factory are expected to exceed $3.3 billion for array, cell, module and color filter equipment as well as facilities and land.

* The top 15 array process equipment makers from 1996 through 2006 are analyzed and ranked by revenue. In calendar year 2006, ULVAC is expected to ship approximately $767 million in TFT array manufacturing systems, followed closely by TEL, AKT, DNS and Canon.

* As shown in the following table, TFT and Color Filter capacities are growing at similarly high rates on heavy investment by panel manufacturers and the continued to shift to larger and larger substrates.

[TABLE OMITTED]

* The market for array AMHS (Automated Material Handling Systems) will reach $468 million in 2006. In-line stocker layouts have now become standard; however, in-line flow shop fab configurations have yet to become a reality, even for gen 8.

* The TFT array exposure equipment market is expected to reach $1.14 billion in 2007, and is forecast to range around $1 billion per year through 2009. Color filter exposure equipment spending adds another 40% to the total. Array lithography tool prices have risen faster than any other systems, and exposure machines now account for approximately 25% of all array equipment spending, making it by far the largest single equipment segment. For these reasons, the industry is keen on developing alternative or replacement lithography technologies. Alternatives to conventional lithography include direct write, EGIS, applying proximity printing to array patterning, reduced mask processes, ink-jet, laser ablation and more.

* The use of array repair has grown dramatically with ever increasing substrate sizes due to greater yield concerns from more random particles and the fact repair is still a semi-manual process. Also, in-process deposition repair has become a common practice after Open/Short testing. Repair tools are now the most commonly used array system with the market reaching 187 zap units and 43 deposition type machines in 2006.

* Although the history of TFT LCD manufacturing has been characterized by the move to ever larger glass, the future may focus on other cost reduction technologies. In array, this will translate to process evolution of mask reduction, use of proximity exposure, Super lines and new automation schemes. Both color filter and cell will see the most revolutionary changes. In color filter, all lithography may be replaced by direct patterning techniques of laser ablation and ink-jet printing. Holistic approaches to achieve all possible cost reduction and performance improvement will help to keep LCDs on a continuous downward price curve, driving demand to new heights.

According to DisplaySearch Vice President Charles Annis, "The DisplaySearch 2006 TFT LCD Equipment Report is a truly unique report covering all aspects of TFT LCD module manufacturing. It offers exclusive insights on market share, pricing, individual equipment vendors, technology as well as forecasts the opportunities of the future. For evaluating future capacity, reviewing competitors' specifications, confirming equipment makers' market position, understanding what drives panel costs or manufacturing fact checking, anyone directly involved in the TFT LCD supply chainCosuch as panel, materials and equipment producers, or anyone evaluating the industry, such as financial analysts, students all the way to retailersCowill find the report an invaluable business tool."

This fourth edition of this highly acclaimed report is by far the most comprehensive to date, providing updated and additional features beyond previous versions:

* Fully updated content in all chapters reflecting the most recent trends and technology

* Capacity and equipment forecasts based on the latest Q3'06 DisplaySearch data set

* A variety of new analyses, such as costs per substrate m2 of glass input, total fab costs by generation, rolling equipment forecasts, upside equipment forecast scenarios, share of equipment revenues by equipment makers' region and more

* Watch Lists of potential future TFT and color filter fabs early in the planning cycle

* A new equipment category and forecast for deposition repair

* "Bottoms Up" color filter, cell and module equipment forecasts by all individual tool segments

* New chapters for Automated Material Handling Systems (AMHS) and "Other" equipment categories

* Two to three times expanded content for most array process equipment chapters

* A 277-entry glossary of TFT LCD manufacturing specific terms

* New dedicated chapters for color filter as well as cell/module equipmentCoThe color filter chapter includes forecasts of fab activity through Q2'09, and the cell/module chapter includes a database of Chinese and European module lines. Both chapters offer descriptions of relevant process equipment.

* A new chapter discussing future manufacturing trends, with specific descriptions of ink-jet, laser ablation and other technologies

The DisplaySearch 2006 TFT LCD Equipment Report Table of Contents and Executive Summary can found at http://www.displaysearch.com/products/samples/toc-equipment2006.pdf. For more information on this report, Richard Goldman at 312-952-5679 or [e-mail], or contact your regional DisplaySearch offices in Japan, Korea, Taiwan and China.

About DisplaySearch

DisplaySearch, an NPD Group company, has a core team of 37 employees located in North America and Asia who produce a valued suite of FPD-related market forecasts, technology assessments, surveys, studies and analyses. The company also organizes influential events worldwide. Headquartered in Austin, Texas, DisplaySearch has regional operations in Chicago, Houston, Kyoto, San Diego, San Jose, Seoul, Shenzhen, Taipei and Tokyo, and the company is on the web at www.displaysearch.com.