LED Demands Remain Soft

Impacted by the European debt, the LCD demand from its largest market— Europe and the US— fell sharply in the first half 2011, and consequently results in the high inventory of LEDs. At the same time, LEDs from capacity expansion in 2010 begin to enter the market, making the industry under the great pressure of price fall. On the other hand, Korea-based LCD brand name companies have been active to lower down the backlight cost in LED TVs. The strategy is to use brighter but fewer LEDs, and thus leads to the less LED demand and revenue. PIDA forecasts the total revenue of the top ten Taiwan-based LED chip players would reach 47 billion NTD with a negative growth rate at 1%, as table 1 shows.

Table.1 Ranking of Taiwan top ten LED chip companies

Courtesy: PIDA

As for LED penetration rate, it only reaches 40% in LCD TV and about 45∼50% in desktop computers. Although LED has almost 100% penetration rate in notebook display, the share is offset by tablet PC. Revenue of Taiwan top ten LED package and module players total 70.8 billion, a -4% growth rate comparing with that in 2010 (see Table 2).

Table.2 Ranking of Taiwan top ten LED package and module companies

Courtesy: PIDA

In last quarter, 3D display enjoyed a considerable increase in market share, jumping from 4% of shipments in the first quarter to almost 9% in the second quarter. The growth in share indicates that manufacturers have greatly expanded the number of 3D-capable models and reduced the premium associated with the technology, offering consumers more choice. There have also been a wider range of new sizes, down to 32-inch, and in the case of LCD, lower frame rate models with 3D available.

A further study reports that 3D TV market, one of the important growth momentums of TV market, is expected to be around 22 million units globally in 2011, taking about 10% market share of the worldwide TV market. Top players, especially Asian makers such as Taiwan’s AU Optronics Corp. and Chimei Innolux Corp., Japan’s Sony Inc. and Panasonic Corp., and South Korea’s Samsung Electronics and LG Display, are putting themselves through the mill only to expect to play a large role in the fast growing waves.

The most recent case is a new technology standard for consumer 3D active glasses, called "Full HD 3D Glasses Initiative", established by Sony, Panasonic, Samsung and X6D Limited just a few weeks ago. The new agreement was announced to collaborate on the development and licensing of radio frequency (RF) system 3D active glasses technology, including RF system protocols between consumer 3D active glasses and 3D displays such as televisions, personal computers, projectors and 3D theaters with XPAND active shutter glasses. Through this initiative, the four giants aim to widely introduce universal active 3D glasses to the market. The move marks a unique collaboration of the world's leading 3D TV manufacturers and 3D technology providers for the benefit of consumers.

Flat panel display (FPD) is one of the most important industry in Taiwan, while Taiwan also is the production base for global FPD industry. Smart phones, tablet PCs, 3D TVs and digital signage not only drive relevant technologies to advance, but bring up the growth of Taiwan FPD industry revenue. According to PIDA, revenue of Taiwan FPD industry in 2010 reached NTD 1,538 billion, a robust growth rate at 34% comparing with NTD 1,152 billion in 2009.

Display Taiwan is an annually held international exhibition that showcases the strength and edgy technologies of Taiwan FPD industry. Top manufacturers and suppliers in every segment in the industry chain gather up in Display Taiwan. Hosted by four leading industry groups— PIDA, SEMI, TAITRA, and TCA, Display Taiwan 2011 is set to start from June 14th 2011 at Taipei World Trade Center Nangang Exhibition Hall.This year over 231 exhibitors attended this great event with 630 booths, bringing an impressive 15% growth comparing with last year.

In Display Taiwan 2011, products and technologies showcased in every booth demonstrates an apparent trend in the near future. Mid-to-small sized panels target touch function and epaper, while digital signage, LED TV, and 3D become the battlefield for large sized panel makers.

In fact, the rise of tablet PCs leads touch function to be the industry’s focus in 2011. Plus shipment of smart phones reached 300~400 million. It is estimated that smart phone would take 65% in global cell phone market in 2015, and consequently benefit worldwide touch panel makers. Organizers of Display Taiwan 2011 particularly sat a Touch Zone to give a comprehensive look to the booming business.

As the scale further expands, Display Taiwan 2011 shows the strong performance and vitality of Taiwan flat panel display industry. In the future, Display Taiwan would continue creating business opportunities for suppliers of manufacturing equipment, components, and materials, and serving as a platform to connect Taiwan FPD players to the world as well.

Fig.1 E Ink’s latest epaper technology

Courtesy: PIDA

Fig.2 Display Taiwan warmly welcomed by visitors

Courtesy: PIDA

For more information, please visit PIDA’s exposition website at: http://www.optotaiwan.com/; http://www.displaytaiwan.com