LCD TV panel manufacturers are planning on growing their cell businesses 30 percent in 2011 to support the increasing demand from TV manufacturer customers, with Chimei Innolux leading the market.
According to a DisplaySearch report, in the cell business model TFT LCD panel makers provide only the liquid crystal cell to the set manufacturer. This cell includes the TFT and colour filter glass substrates, as well as liquid crystal with timing controller and driver ICs, but not the backlight module or additional optical films.
The benefit of this business model is that it allows more flexibility in the panel production, enabling set makers to customise their own designs and add more value.
“In 2010, Chimei Innolux led the cell business, while other LCD manufacturers had a very minor share of cell shipments. However, in order to meet the tough market environment surrounding the TV business as a result of severe price wars, even Samsung plans to increase cell shipments to their internal TV division. This may change the supply chain and market share in 2011,” noted Deborah Yang , Research Director of Monitor and TV for DisplaySearch.
It is predicted that Chimei Innolux will lead the market with an expectation that it will achieve over 50 percent of cell shipments. The firm’s major customers will be Chinese TV brands.
Samsung meanwhile is will target 40 percent of its cell shipments for its internal TV division. Other panel makers are also expected to increase shipments this year by 10-20 percent.
It is also noted that the top three panel makers, Samsung, LG Display, and Chimei Innolux, will be aggressive with their plan to ship more than 60 million units of LCD TV panels in 2011. In total, LCD TV panel makers plan to ship more than 270 million units in 2011.
Further DisplaySearch analysis showed that the share of LCD TVs outsourced reached a record high of 34 percent in the third quarter of 2010, as Sony and LGE increased their outsourcing ratio to more than 50 percent and 20 percent, respectively.