Shortages Seen Threatening LED-lit LCD TVs’ Encroachment on CCFL Models
Low power consumption, slim design, and high performance have LED-based LCD TVs poised to pass CCFL TVs in shipments by the end of 2012, said the Quarterly LED Backlight Report from DisplaySearch. But that could be threatened by shortages of key components for LED backlights that impacted production for this year’s first quarter. The market research firm projected 80 percent market penetration of LED-lit LCD TVs by the end of 2012.
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Key component shortages currently include optical polymethyl methacrylate (PMMA), which has limited production of TV light guide plates; white polyester (PET), used in reflective films; and sapphires, which have affected production of LED wafer substrates, the report said. In addition, it said reflector film suppliers were stretched between demand from LCD and solar cell applications.
Many LCD makers didn’t recognize the limited capacities of key material suppliers before fixing their LED TV panel shipment targets, said Kevin Kwak, DisplaySearch research director. PMMA and PET, particularly, are in “significant shortage,” he said. PMMA and PET suppliers are expanding capacity but at a slow pace because of financial constraints and the time required to build new facilities, he said.
Multi-vendor LED qualification and minimizing the number of chips in LED BLU design could help reduce shortages, DisplaySearch said. It also suggested that investments between LCD makers and PMMA suppliers could ensure sufficient light guide plate material. Reducing costs will also be a factor in demand on the consumer end, Kwak said. “To expand the LED-backlit LCD TV business successfully, LCD TV panel or TV set makers need to consider product competitiveness, including effective procurement, design innovation, cell business models, and sales strategies because many consumers feel the prices of LED-backlit LCD TV sets are still too high.”