New TV Standard Will Stimulate Demand for Taiwanese FPDs in China

Taipei, Nov. 25, 2010 (CENS)--The implementation of new power-efficiency standards for flat-panel TV in China from Dec. 1 is expected to trigger a major shakeout in the Chinese TV market, boosting demand for models with higher power efficiency, a trend which will benefit Taiwanese flat-panel display suppliers AU Optronics and Chimei Innolux Corp.

Many existing models will have to exit the market, leaving a vacuum equivalent to 15% of market demand up for grabs by suppliers with models featuring higher power efficiency.

Peng Shuang-lang, executive vice president of AU Optronics, noted that in response to the implementation of the power-efficiency standards, TV firms will carry out closed-out sales for their existing models and purchase new items, a trend which will raise shipment of Taiwanese flat-panel displays to China.

The new standards are also likely to stimulate demand for LED (light emitting diode)-backlit LCD TVs, which may emerge as a new mainstream item on the Chinese market in 2011. LED models boast 50% power saving, in comparison with other LCD TVs.

Shipment of LED-backlit models topped 827,000 units in the Chinese market in the third quarter, boasting a 20% penetration rate, according to AVC, a Chinese market research institution.