Taiwanese Panel Manufacturers to Lead 4K2K TV Display Shipments This Year: NPD DisplaySearch

The top-two thin film transistor-liquid crystal display (TFT-LCD) panel suppliers in Taiwan, Innolux Display Corp. and AU Optronics Corp. (AUO), are forecast to lead 4K2K, or UHD (Ultra High Definition), TV panel shipments worldwide this year, according to NPD DisplaySearch.

The market research firm pointed out that 4K2K TV display panels have become increasingly available and affordable to TV manufacturers, and the two Taiwanese panel makers are expected to have a 58% share of the market in 2014, followed by South Korean manufacturers (Samsung Display and LG Display) with 25%, and Chinese manufacturers (China Star and BOE) with 14%.

There remains a significant difference in strategy between Chinese and global brands, NPD DisplaySearch said. Chinese brands are aiming to sell 4K2K TVs at a small premium in their domestic market, while global brands want to maximize image quality. Some panel makers are promoting reduced-specification 4K TV panels to lower cost and increase shipment volume; however, this strategy might not fit well with top brands aiming to position 4K TV as a high-end segment sold at premium prices.

As Chinese brands continue to lead 4K TV manufacturing and shipments, 4K panel demand from China's top six TV brands is crucial to all panel makers. For example, China Star expects 90% of its 4K TV panels to go to China's top six brands, BOE 70%, Innolux 57%, and AUO 56%. The top global TV panel makers—Samsung Display and LG Display—have relatively modest plans for 4K panel production, and expect much of their production to go to their affiliated TV brands. Those brands—Samsung and LGE—each plans to source about 60% of their 4K TV panels from their in-house panel manufacturers this year, NPD DisplaySearch said.

“The 4K display demand from their related TV brands is critical to the ability of Samsung Display and LG Display to compete effectively within the growing 4K TV market,” said Deborah Yang, research director for monitors and TV for DisplaySearch. “The ability of the Korean panel makers to expand 4K panel production is dependent on their success in securing more 4K display clients, beyond satisfying the needs of their own 4K TV brands.”

“The rise of the 4K TV market is mainly driven by the supply side, while leading TV brands are concerned about the value proposition of 4K TVs,” Yang said. “While some TV brands are considering increasing their 4K TV shipment targets, we continue to see a mismatch between 4K TV panel supply plans and consumer purchasing expectations.”