Large-area TFT LCD makers targeting 53 percent LED backlight penetration for TV panels in 2011

SANTA CLARA, USA: Global shipments of LCD TV panels with LED backlights reached a high of 16.6 million units in Q4’10, with strong growth in edge-lit configurations.

According to the latest DisplaySearch Quarterly Large-Area TFT LCD Shipment–Advanced LED Report, panel makers are targeting rapid penetration increases for LED backlights in LCD TV panels, growing from 36 percent in Q1’11 to 62 percent in Q4’11 for an overall penetration of 53 percent for 2011. For the year 2010, penetration reached 21 percent, up from 2 percent in the previous year.

“Despite some buildup of LED-backlit TV panel inventories in the second half of 2010, the industry has recognized that LED backlighting is an irreversible trend, with benefits such as lower power consumption and slimness,” noted David Hsieh, DisplaySearch VP and research leader for large-area panels. “This has encouraged LCD TV panel makers to reduce LED backlighting costs continuously in order to increase shipments.”

The growing awareness of LEDs among consumers has encouraged panel makers to increase LED performance. DisplaySearch expects that LED penetration will pass 50% and become the mainstream for LCD TV backlights.

Hsieh added: “This does not mean that CCFL will no longer be in demand, as there are still many end users and emerging markets that are very price sensitive. It’s important for the industry to maintain support for CCFL panels.”

Table 1: LCD TV Panel Shipments by Backlight TypeSource: DisplaySearch Quarterly Large-Area TFT LCD Shipment–Advanced LED Report.

The highest penetration of LED backlights in LCD TV panels was in the 50” to 60” segment. In Q4’10, LED backlight penetration was 76 percent in 50-54” LCD TV panels, 67 percent in 55-59,” and 87 percent in 60”+. In the 46-47” segment, LED backlight penetration was 54 percent in Q4’10. In the 40-42” and 32” segments, LED backlight penetration was 37 percent and 17 percent, respectively.

Nearly all LCD TV panel makers are focusing on edge-type LED backlights in TV panels, with the exception being Sharp, which is producing direct type as well.

As the following figure shows, LG Display led in LED-backlit LCD TV panel shipments in Q4’10, shipping more than 5 million units for a 31.1 percent share. Sharp closely followed with 21.5 percent, then Samsung with 20.8 percent, and AUO with 14.2 percent. In terms of LED-backlit LCD TV panel revenues, Sharp and Samsung were tied with 27.3 percent; LG Display followed with 25.1 percent, and AUO with 13.9 percent.

Fig. 1: LED--Backlit LCD TV Panel Shipment Share (Q4’10)Source: DisplaySearch Quarterly Large-Area TFT LCD Shipment–Advanced LED Report.