Manufacturing cost of active-matrix liquid-crystal displays as a function of plant capacity

Abstract

This work models the cost of 10-in class active-matrix liquid-crystal display (AM-LCD) manufacturing as a function of plant capacity for both first generation plants in 1993 and second generation plants in 1995. In order to model manufacturing costs as a function of plant capacity, this work distinguishes between capacity-dependent and capacity-independent costs. Among the costs included in our model are the costs of capital equipment, materials and labor. Decreases in materials and components costs and improvements in process yield are shown to be the primary factors driving reductions in manufacturing cost per display for large-scale plants. The minimum efficient scale is found to be roughly 57000 displays per month for a first generation plant and roughly 150000 displays per month for a second generation plant.