The shortage of key components limits the growth of LCD TV LED BLU

In the latest "LED Backlight Quarterly Report", DisplaySearch pointed out that LED backlight module (BLU) has become a key element of the TFT-LCD industry and is expected to maintain its growth trend in the next few years, and will exceed CCFL backlight in Q4'12. The TFT-LCD has a market share of 80%.

The company emphasizes that LED will undoubtedly become the mainstream light source in all LCD applications due to its unique features: thin thickness, low power consumption, and high display performance. This is an opportunity for display material suppliers. For example, a light guide plate made of optical polymethyl methacrylate (PMMA), a thin film mirror made of white polyester (PET), and a sapphire substrate material for preparing an epitaxial wafer of LED.

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Graphic: LED BLU occupancy of 10〞 TFT LCD (above). Supply and demand forecast of global PET materials (below). Image source: Q2'10 LED backlight quarterly report

However, LCD manufacturers faced a shortage of key components related to LED backlighting in the first quarter of this year. The shortage of PMMA limits the production of light guide plates. Many thin film mirror suppliers are struggling to cope with demand from liquid crystal and solar cell applications. In addition, many LED manufacturers are more constrained by insufficient supply of sapphire substrates.

DisplaySearch research director Kevin Kwak said that many LCD manufacturers did not take into account the capacity of key material suppliers before determining the LED backlight TV panel shipment target, especially for PMMA and PET. Although these suppliers are gradually expanding their production capacity, it will take a long time to build a new factory, and then there will be restrictions on the economic environment.

So how can the solution in the supply chain solve the shortage of devices? In terms of LEDs, it may be helpful to select multiple suppliers and improve the LED backlight design to minimize the number of chips. Furthermore, LCD manufacturers and PMMA suppliers should jointly invest, which is a solution for the stable supply of light guide materials.

Kwak added that in addition to ensuring a stable source of supply, LCD TV panels or TV manufacturers need to consider the competitiveness of their products, including effective procurement, innovative design, business models and sales strategies to ensure LED-backlit LCD TVs. The price is acceptable to consumers.

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