Cell panel is expected to grow by 30% in 2011 Samsung will change supply chain

According to the DisplaySearch Quarterly LCD TV Value Chain Repor report analysis, in order to meet the increasing panel demand of TV manufacturers, the LCD panel factory plans to increase 30% of cell business in 2011. In this business model, the panel factory only provides cells or open cells and does not provide a backlight module or an additional optical module. This kind of business model makes the panel production more flexible, and also enables the complete machine manufacturer to customize design and create differentiated features.

Deborah Yang, DisplaySearch and Television Research Director, said: “In 2010, New Chi Mei was the first to dominate the cell business, and other LCD manufacturers only had a small market share. However, in order to adapt to the seriousness of the TV industry after undergoing cruel price warfare. The market environment, Samsung also began to plan to increase its internal cell shipments. This move will change the supply chain and market share in 2011."

DisplaySearch predicts that in 2011, New Chi Mei will continue to lead the cell market with shipments accounting for more than 50% of the total. The customers are mainly Chinese TV brands. Samsung plans to increase its internal cell shipments, accounting for about 40%. Other panel makers also plan to increase cell shipments in 2011, accounting for 10-20%. In addition, some OEMs and TV brands are gradually moving towards the BMS (Backlight Module System) model, hoping to further reduce overall production costs.

Figure 1: Analysis of Cell shipments by panel makers, 2006-2011 Source: DisplaySearch Quarterly LCD TV Value Chain Report

The following summary shows the dynamics of other LCD TV value chains:

In the third quarter of 2010, LCD TV outsourcing reached the highest historical value, with a ratio of 34%; the proportion of Sony and Lejin electronic outsourcing increased to 50% and 20%, respectively.

Rank of OEM shipments in the third quarter of 2010 (excluding TV OEMs), TPV (TPV) tops the list, accounting for 23%; Foxconn and Foxconn/CMI (15%); Veste’s share It is 13%. Taiwanese OEMs Compal, Wistron and AmTran/Rakern accounted for between 8-9%.

In 2011, the top three panel makers Samsung, Lucky Gold Display and New Chi Mei are planning to ship more than 60 million LCD TV panels. Total LCD TV panel shipments will surpass 270 million units.

The total sales target of the top 7 Chinese TV brands in 2011 was 60 million units. Although Chinese TV brands are not optimistic about the domestic market, their overall plan shipments in 2011 will still increase by 33% compared to 2010.