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LCD TV manufacturers have been suffering from key component shortages related to LED backlights in the first quarter of 2010, resulting in higher prices, according to a new report by DisplaySearch.
According to analysts, PMMA (optical polymethyl methacrylate) shortages have limited production of TV light guide plates. Many reflector film suppliers were stretched between demand from LCD and solar cell applications. In addition, many LED makers faced a sapphire substrate shortage.
The LED backlight unit, is said to have emerged as a key factor in the TFT LCD industry, and is expected to maintain its growth momentum for the next several years.
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| LED Backlight Unit Penetration in 10 inch + TFT LCDs |
DisplaySearch analysts says this represents an opportunity for display materials suppliers. For example, optical polymethyl methacrylate (PMMA) used in light guide plates, white polyester (PET) for reflector film, and sapphire for LED wafer substrates.
Kevin Kwak, a director at DisplaySearch, said: “Many LCD makers didn’t recognize the limited capacities of key material suppliers before fixing their LED TV panel shipment targets. In particular, PMMA and PET are in significant shortage. PMMA and PET suppliers are slowly expanding capacity since they need time to add new plants and face financial limitations.”
Kwak continued:”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 price of LED-backlit LCD TV sets are still too high.”
The DisplaySearch Quarterly LED Backlight Report also provides an analysis of large-area LED backlight unit cost structures and cost trends for notebooks, monitors and LCD TVs as well as an extensive overview of LED backlight TVs.
