TFT strategy pays off with handset design win

Three-Five Systems has been selected as a supplier of next-generation colour TFT display modules for a Tier 1 global handset OEM.

Three-Five Systems has been selected as a supplier of next-generation colour TFT display modules for a Tier 1 global handset OEM.

The company says that design work with the customer is nearing completion, and that it has received authorisation to commence tooling.

The company expects initial shipments to begin in late Q2 2005, ramping to high volume production quantities in the third quarter of 2005.

Although specific revenue forecasts have not been provided, TFS officials reckon they expect to ship over a million units during the second half of 2005.

TFS indicated in June 2004 that it had developed a platform strategy to enter the small-format colour TFT display module market.

The platform strategy is a new fabless TFT foundry model, similar to the established fabless semiconductor model used in IC development.

TFT Platform Products from TFS allow makers of mobile handheld devices to leverage the popularity and increasing cost-effectiveness of small form factor TFT displays.

The TFT technology is rapidly becoming the standard for cellphones and PDAs because of its brightness and its ability to display video speed images.

The reduced prices of small sized TFT displays are helping drive the growth in this market and are allowing manufacturers to achieve the price targets that consumers demand.

TFS is able to deliver semicustom versions of its Platform Products that are optimised for handheld device market requirements from an electrical, optical and mechanical perspective.

As they require little customisation, average product cycle time is only four months.

This allows original equipment manufacturers (OEMs) to deliver new technology to the market faster and enhance their chances of capturing greater initial market share.

TFS has partnered its LCD design services and products groups with some of the world's top-tier colour display manufacturers to create a line of semicustom colour modules, specifically designed for handheld applications.

TFS then employs its electronic manufacturing services (EMS) structure, and specifically its module manufacturing services facility in Beijing, China, to manufacture state-of-the-art colour TFT modules for leading original equipment manufacturers (OEMs).

Jack Saltich, CEO of TFS said: "Our fabless platform strategy has allowed us to take advantage of the excess capacity that exists with many colour TFT glass manufacturing companies".

"Since this excess capacity situation is expected to be present for the next several years, we believe our newly introduced platform products, which target the mobile electronic device market, position us well to penetrate this huge market".

"With over 20 years experience in the display sector and our existing production capability, we have both the expertise and the capacity to win in this fast-growing market".

"We are pleased to have secured our first anchor customer in this business".

"This announcement reflects the achievement of a significant milestone in our colour TFT business development strategy".

"Now we will focus on growing this anchor TFT customer, along with several existing, smaller TFT customers, into a sizeable business within TFS".

According to a worldwide flat panel display market growth report published in the fourth quarter of 2004 by DisplaySearch for the United States Display Consortium (USDC), revenues from amorphous silicon TFT LCDs for the third quarter of 2004 were $10.4 billion, with 14% of those displays shipped for mobile telephones.

DisplaySearch predicts that the total mobile phone market for amorphous silicon TFT LCDs will exceed $6.3 billion in 2005.

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