Taiwan Accounts for 76% of 2013's Global 4K2K TV-panel Shipments: WitsView

Innolux Display Corp., a major Taiwanese maker of thin film transistor-liquid crystal display (TFT-LCD) panels, topped global counterparts in 4K2K, or UHD (Ultra High Definition), TV panel shipments in 2013 by accounting for 64% of the global market, according to WitsView Technology Corp., a LCD market research firm.

Thanks to the strong demand created by the coming Chinese New Year (in late January), and panel makers' aggressive promotions, shipments of 4K2K TV panels peaked in the fourth quarter of 2013 with some 1.34 million such panels delivered, representing a 14% quarter-on-quarter (QoQ) growth. In 2013, some 3.1 million 4K2K TV panels were shipped, representing a penetration rate of 1.3%, WitsView said.

Chinese panel maker Shenzhen China Star Optoelectronics Technology Co., Ltd. (CSOT) replaced Taiwanese counterpart AU Optronics Corp. (AUO) to be the No. 2 4K2K TV-panel supplier in 2013 with market share of 14%, compared to AUO's 12%. Korean panel makers Samsung and LGD each had a 5% global share in the segment.

Industry sources said that 4K2K is the new focus in the LCD TV market in 2013, in conjunction with the thin-type LED-backlighting, 3D and smart TV technologies in previous years. Under the aggressive promotion by Taiwanese panel suppliers, such new technology has attracted international TV brands, including Sony, Samsung, LG, and six top Chinese vendors to push their 4K models.

J.A Chen, senior research manager of WitsView, pointed out that Taiwanese panel supplier pulled ahead their Korean rivals in the development of 4K2K TV panels, and have been trying to extend such product lineup into various sizes including 50-, 55-, 58-, 65-inch etc.. Korean companies, however, chose to focus on the development of high-level 4K2K panels in sizes of larger than 55-inch. Innolux led counterparts in using 39-, 40- and 42-inch medium-sized TV panels, which immediately won hot responses from Chinese TV vendors, and 4K TVs have become the major driver of the Chinese TV market after the expiration of government subsidy programs.

The research manager attributed Innolux's high market share to the panel supplier's early product development and mass production and aggressive pricing strategy; CSOT's No. 2 position to the strong demand for parent TCL Corp. (one of China's largest TV vendors). Though its ranking fell to the No. 3, AUO began cooperating with different Japanese TV brands in the first half of 2013, and major Chinese TV vendors in the second half, he added. Together, Chen said, Taiwan won a total 76% market share in 2013 global 4K2K TV panel shipments.

All signs point to a rapid development trend of 4K digital contents in 2014, WitsView said, judging from the exhibits at the 2014 Consumer Electronics Show (CES) held in the U.S., and launches of numerous 4K-compatible devices such as TVs, monitors, notebook PCs, digital cameras, and video cameras.

Chen noted that different TV brands are trying to find their niches in the 4K2K game. Samsung and LG, for example, are pushing 4K2K TVs with curved panel designs, while Japanese companies are appealing to the consumers that their 4K2K TVs are integrated hardware platform for video games and entertainment contents. Others, such as Vizio, TCL and Changhong, are trying to broaden the 4K2K TV segment by promoting their more affordable models.