LED TVs Are Taking Over

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Look for rapid growth and falling prices in LED display market, report says.

Think you’re seeing more LED TVs today? You’ve seen nothing yet, according to the latest Quarterly LED Backlight Panel Shipment and Forecast Report by DisplaySearch.

LCD TV panel makers are targeting aggressive growth for LED panels, with Samsung and Sharp aiming to ship more LED-based LCD TVs than CCFL panels in the fourth quarter of this year, states the report. And prices will continue to drop.

Manufacturers of LED panels plan to reach 40 percent LED penetration in the fourth quarter this year (see table below), and to exceed 50 percent in quarter two of 2011, adds the report. Penetration is highest among leading LCD TV panel makers, including Samsung, LG Display, AUO, Sharp, and Chimei Innolux. Sharp is the only one focusing on direct-type LED backlights, as opposed to the more common edge-lit structure.

“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,” notes David Hsieh, Large-Area LCD Research Team Leader and Vice President of the Greater China Market for DisplaySearch. “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.”

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.

The Quarterly LED Backlight Panel Shipment and Forecast Report 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 of 2010 was 13.1 percent, and panel makers have set targets to exceed 30 percent 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 percent in the second quarter.

by Steven Castle

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