Chimei Innolux to Lead LCD-TV Cell Shipments in 2011: DisplaySearch

Taipei, Feb. 9, 2011 (CENS)--Liquid crystal display (LCD) panel manufacturers are planning to grow their cell businesses 30% in 2011 to support the increasing needs of their TV manufacturer customers, according to the DisplaySearch.

The major display-market research and consulting firm said that in the cell business model, thin film transistor (TFT))-LCD panel makers provide only the liquid crystal cell – which includes the TFT and color filter glass substrates, as well as liquid crystal with timing controller and driver ICs, but not the backlight module or additional optical films – to the set manufacturer, who completes the module as they build the TV set. This business model allows for more flexibility in panel production, and also enables TV set makers to customize their designs and add more value, DisplaySearch explained.

Deborah Yang, Research Director of Monitor and TV for DisplaySearch, said that in 2010, Chimei Innolux Corp. of Taiwan, the largest TFT-LCD panel manufacturer on the island, led the cell business, while other LCD manufacturers had a very minor share of cell shipments.

DisplaySearch forecast that Chimei Innolux would lead the cell market, achieving 50% or more of cell shipments, with their major customers being Chinese TV brands. Other panel makers also plan to increase cell shipments 10%-20% in 2011. In addition, some OEMs and TV brands plan to leverage backlight module system (BMS) assembly in an effort to reduce the overall cost of production.

The company also noted that the share of LCD TVs outsourced reached a record high of 34% in the third quarter of 2010, as Sony and LGE increased their outsourcing ratio to more than 50% and 20%, respectively.

DisplaySearch said that in 2011, the top-three panel makers, Samsung, LG Display, and Chimei Innolux, would be aggressive with their plan to ship more than 60 million units of LCD TV panels. In total, LCD TV panel makers plan to ship more than 270 million units in 2011. And sales targets for the top-seven Chinese TV brands for 2011 total 60 million units. Although Chinese brands report little excitement in the China TV market, their aggregate shipment plans show 33% year-on-year (YoY) unit growth on average in 2011, DisplaySearch said.