LED Backlight Penetration in LCD TV Panels Reaches 26% in Q3: DisplaySearach

Taipei, Nov. 18, 2010 (CENS)--Shipments of large-sized thin film transistor-liquid crystal display (TFT-LCD) panels over 9.1-inch fell to 163 million units in the third quarter of 2010, with 4% quarter-on-quarter (QoQ) decline, but 7% year-on-year (YoY) growth, according to DisplaySearch.

The major display market research firm added that overall TFT-LCD revenues reached US$21.3 billion in the third quarter, down 7% QoQ, but up 7% YoY.

Panel makers are targeting just 3% shipment growth in the fourth quarter, DisplaySearch said, as the capacity utilizations have been in a controlled range due to the slow demand in the end market and supply-chain inventory adjustments.

"The TFT LCD industry experienced an oversupply in Q3'10, and as a result, shipments declined, panel prices fell and suppliers reduced capacity utilization rates due to the lack of orders and inventory reduction. However, even as overall shipments decline, LED-backlit panel shipments are still growing, continuing the industry's irreversible trend toward LED," noted David Hsieh, Vice President, Greater China Market, DisplaySearch.

Hsieh added that the third-quarter performance results are partly due to over-optimism and over-stocking in the second quarter.

LCD TV panel shipments grew in the third quarter, despite the oversupply situation because of spot deals for brands who are looking to holiday promotions to reduce inventories, especially on 40-inch+ and LED models.

DisplaySearch said that of the US$21.3 billion in large-sized TFT-LCD revenues in the third quarter, LED-backlit panels accounted for 44%. This is a big jump from 37% in the second quarter. On a unit basis, 77 million LED-backlit panels were shipped in the third quarter, a 6% QoQ growth. The total penetration of LED backlights increased to 47.2%, from 42.7% in the second quarter. In Q3'10, LED backlight penetration was 21% in monitors, 93% in notebook PCs, 100% in mini-note/slate PCs, and 26% in LCD TV. LG Display was the leading LED-backlit LCD panel supplier in the period.

Top-3 LED Panel Suppliers for Each Application in Q3'10
Rank	LCD Monitor	Notebook PC	Mini-Note/Slate	LCD TV	Public Display	Total
1	LG Display	LG Display	LG Display	LG Display	Sharp	LG Display
2	AUO	Samsung	Samsung	Samsung	Samsung	Samsung
3	Chimei Innolux	AUO	HannStar	Sharp	N/A	AUO
Source: DisplaySearch Quarterly Large-Area TFT LCD Shipment Report