LCD TV Panels to Reach 40% LED Penetration by Q4: DisplaySearch

Taipei, Sept. 9, 2010 (CENS)--The continuing transition to LED backlights is motivating LCD-TV panel manufacturers to develop their supply chains to reduce the cost of LED-backlit panels, according to major global display market research firm DisplaySearch.

The research company said in its latest report that 9.5 million, or 18.5%, of the LCD-TV panels that shipped in the second quarter of 2010 had LED backlights, which was 110% growth quarter-on-quarter (QoQ). LCD TV panel makers are targeting aggressive growth for LED panel shipments, with plans to reach 40% LED penetration in the fourth quarter, and to exceed 50% in the second quarter 2011.

Penetration is highest among leading LCD-TV panel makers, including Samsung, LG Display of South Korea, AUO and Chimei Innoluxa of Taiwan, and Sharp of Japan, DisplaySearch said. Notably, Samsung and Sharp aim to ship more LED LCD TVs than cold cathode fluorescent lamps (CCFL) panels in the fourth quarter. Among these players, Sharp is the only one focusing on direct-type LED backlights, as opposed to the more common edge-lit structure.

In the second quarter, the leading size of LED TV panel shipments was 40-inch, with a 23% share among all LED LCD TV panels shipped. This was followed by 32-inch with 21% share, 46-inch with 15%, and 42-inch with 11%. Shipments of 37-inch LED panels grew the fastest—642% from the first to second quarter.

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.

DisplaySearch also examined LED panel shipment and penetration in desktop monitor and notebook PC panels. LED penetration for desktop monitor panels shipped in the second quarter was 13.1%, and panel makers have set targets to exceed 30% by the end of the year. LG Display, AUO, and Chimei Innolux are leading in LED monitor panel shipments. In terms of notebook PCs, LED penetration soared to 92% in the second quarter.

Panel Makers' Plans for Q4' 10 - LCD TV Panel Shipments by Backlight Type
Backlight Type	AUO	Chimei Innolux	CPT	IPS Alpha	LG Display	Samsung	Sharp
LED	26.9%	26.9%	18.0%	6.5%	38.1%	58.3%	65.5%
CCFL/Others	73.1%	73.1%	82.0%	93.5%	61.9%	41.7%	34.5%
Source: Quarterly LED Backlight Panel Shipment and Forecast Report