LCD TV panel makers target 40 percent LED penetration by Q4’10

SANTA CLARA, USA: The continuing transition to LED backlights is motivating LCD TV panel manufacturers to develop their supply chains in order to reduce the cost of LED-backlit panels.

According to the latest Quarterly LED Backlight Panel Shipment and Forecast Report, 9.5 million, or 18.5 percent, of the LCD TV panels that shipped in Q2’10 had LED backlights, which was 110 percent growth Q/Q. LCD TV panel makers are targeting aggressive growth for LED panel shipments, with plans to reach 40 percent LED penetration in Q4’10, and to exceed 50 percent in Q2’11.

Penetration is highest among leading LCD TV panel makers, including Samsung, LG Display, AUO, Sharp, and Chimei Innolux. Notably, Samsung and Sharp aim to ship more LED LCD TVs than CCFL panels in Q4’10 (Table 1). Among these players, Sharp is the only one focusing on direct-type LED backlights, as opposed to the more common edge-lit structure.

Table 1. Panel Makers’ Plans for Q4’10 - LCD TV Panel Shipments by Backlight TypeSource: Quarterly LED Backlight Panel Shipment and Forecast Report.

“LCD TV panel prices fell quickly in Q3’10 due to oversupply and inventory adjustments downstream. However, LED panel prices are falling even faster than CCFL.” noted David Hsieh, Large-Area LCD Research Team Leader and Vice President of the Greater China Market for DisplaySearch. Hsieh added, “Panel makers are expecting to grow their shipments through the end of the year as LED panel prices and end-market retailer prices of LED LCD TVs fall rapidly.”

After the tight supply in Q2’10, the LED backlight supply chain ramped up to meet panel makers’ production schedules. Furthermore, panel makers are investing vast resources to develop lower cost LED backlights with enhanced performance.

Some of the technology development efforts include “single-sided two light bars” edge-lit LED backlights, the use of alternative optical films for higher brightness and lower cost, as well as enlargement of LED chip packages for better luminous efficiency. These technologies will pave the way for another wave of LED penetration.

In Q2’10, the leading size of LED TV panel shipments was 40”, with a 23 percent share among all LED LCD TV panels shipped. This was followed by 32” with 21 percent share, 46” with 15 percent, and 42” with 11 percent.

Shipments of 37” LED panels grew the fastest—642 percent from Q1’10 to Q2’10. In terms of LED panel manufacturing, Samsung and Sharp each shipped 2.8 million LED LCD TV panels in Q2’10, with 29 percent market share each.

LG Display followed slightly behind with 2.4 million units and a 25 percent share, while AUO shipped 1.2 million units with 13 percent share. As a result, the leading four companies accounted for 96 percent of the total shipment of LCD TV panels with LED backlights.

DisplaySearch also found that many system integrators or brands that have their own LCD module assemblies are also buying LCD cells from panel makers such as Chimei Innolux and AUO, and then assembling the LED backlight with their own design. The backlight, module, and system integration business models of leading manufacturers are helping to drive rapid LED penetration.