LED backlights have become an important key component of the TFT LCD industry and will continue to grow in the coming years. According to DisplaySearch's latest season "LED backlight research and analysis report", it is estimated that in the fourth quarter of 2012, the shipment of LED backlight panels for large-size LCD panels will exceed the shipment of cold cathode fluorescent lamps (CCFL) backlight panels. And the penetration rate will be as high as 80%.
Figure 1: 2007-2016 LED backlight panel in 10 inch LCD panel penetration rate (according to different applications)
LEDs are undoubtedly the mainstream light source in future LCD panels due to their ultra-thin design, low power consumption and high image quality. This is a rare opportunity for display material suppliers. The main upstream materials are PMMA (commonly known as acrylic) used in light guide plates, color polyester (PET) used in white reflective films, and sapphire for LED epitaxial substrates.
However, the panel factory has faced the dilemma of LED backlight-related components out of stock since the first quarter of 2010. The output of TV light guides is also limited by the shortage of PMMA, and the demand of many reflective film suppliers is also Walk between LCD panels and solar cell applications. In addition, many LED manufacturers are also facing a shortage of sapphire substrates (especially 2-inch substrates).
Mr. Kevin Kwak, Director of DisplaySource LED Backlight Research, pointed out: “Many panel makers do not want to acknowledge that the main material supply limits the scale of output before they correct the LED TV panel shipment target. Currently, there are two shortages of materials such as PMMA and PET. It is quite serious. On the one hand, it takes a certain period of time for PMMA and PET capacity expansion. In addition, new capacity needs more capital investment, so the current capacity expansion is quite slow."
How can we solve the shortage of some of the roles in the supply chain? In terms of LED chips, more LED manufacturers need to be certified, and improve the design of LED backlights and reduce the number of chips, which will improve out-of-stocks. phenomenon. In addition, panel makers can consider investing in new capacity with PMMA suppliers to accelerate supply and ensure the source of light guide materials.
Kevin added: "At present, LED-backlit LCD TVs are still too expensive for many consumers. In order to successfully expand the market for LED-backlit LCD TVs, panel manufacturers and TV manufacturers need to think together about how to improve product competitiveness, including More efficient procurement strategies, novel designs, cell business models, and sales strategies.
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