LED replace CCFL imperative supply chain shortage challenges

Since 2009, Samsung launched a side light type (Edge-Lit) led (light emitting diode) TV, LED TV solves the problem with high price and high standard, in line with environmental awareness etc. at a more reasonable price, thin design, energy saving and attract consumers. At the same time, it also allows many TV brands, panel manufacturers, backlight suppliers began to believe that LED TV has a bright future.

But when people like a swarm of bees investment, many problems of LED supply chain with TV exposed, especially in the technology is not yet fully mature, the emergence of many LED backlight solution to make the supply chain more complex.

LED replace CCFL imperative

We found that since 2004 is the first stage of the growth of the global flat-panel TVs, flat-panel TV is called (LCD and plasma) to replace the traditional CRT (CPT) TV stage. LCD panel production capacity, the rapid evolution of technology and the rapid reduction of the material and manufacturing costs are the main driving force for the rapid spread of flat-panel tvs.

2004 LCD (LCD) TV shipments to 10 million units in 2008, has grown to 100 million (more than traditional TV and CPT), reached 145 million units in 2009. CRT TV has been in existence for half a century, but in less than 5 years to catch up with the LCD TV, the panel industry is amazing explosive power. With the application of LED technology to the panel, we believe that the second phase of the growth of the global flat-panel TVs will be transferred from the cold cathode tube (CCFL) LCD TV to LED backlight LCD tv. As for the third wave of growth, we think it is three-dimensional television (3D TV) popularity, but now 3D TV is still in early development and market exploration stage, growth momentum is far behind the LED TV, under the condition of hardware and software are immature, 3D TV popularity remains to be seen whether comprehensive.

2009 global LED backlight LCD TV shipments to 3 million 600 thousand units, can be said to be the first year of LED tv. However, if shipped from the point of view, last year, the global sales of 145 million units of LCD TV, LED backlight TV accounted for only 4%, the permeability is quite low. But in 2010 with the launch of various brands of LED products, LED backlight panel technology and the rapid development of terminal TV production, is expected in 2010 the penetration rate of 30%. We believe that by 2012 LED backlit LCD TV will be more than a cold cathode backlight LCD tv.

LED backlight technology is not perfect

By CCFL backlight LCD TV LED backlit LCD TV, both from a technical and market development are inevitable evolution, after all, consumers are increasingly high demand for vision, and technology R & D and production capacity of manufacturers continue to improve. LED backlight has many advantages, but the current LED backlight LCD TV technology is not perfect.

From the strengths perspective, LED has the following advantages.

First, thin. The current LED in the side light type (Edge-Lit), in other words LED to encapsulate and combined into light (LightBar) installed in the backlight panel or the side, so it can reduce the space required for backlight, thereby lightening and thinning.

Second, energy saving. LED does not need to be larger than the cold cathode drive voltage and tube current, even the use of more LED number of straight down LED backlight than CCFL backlight power saving.

Third, can improve the panel average selling price. For panel manufacturers, TFTLCD is a high capital intensive technology intensive industry, it has to face the average sales price declining and prices plummet when pile up in excess of requirement. Therefore, how to increase the added value of the panel is the key. LED backlight has its thin, lightweight, energy saving and compliance with environmental regulations and other value-added, which allows panel manufacturers to improve their average sales price, accelerate investment recovery.

Fourth, product differentiation. For brand manufacturers, the competitive advantage of the product is nothing more than the cost and differentiation advantage. Cost competition is a bloody competition, depends on the efficiency of the assembly and the assembly size, slightly behind it prone to loss, so we see many international TV brands have begun to reduce their own production factories, and outsourcing to a larger scale, management more professional manufacturers (OEM/ODM). In the part of differentiation, LED can make LCD TV brand to shape the image of the brand.

Of course, LED TV also has some disadvantages.

First, the cost is still much higher than the traditional CCFL backlight, which needs continuous development of technology and production continued to expand.

Second, LED backlight supply chain ability than the traditional CCFL backlight is mature, so it is very easy to cause no cohesion, not the phenomenon of delivery.

Third, LED side light type backlight brightness and uniformity is better than the traditional CCFL backlight, so the technology developers must add many optical materials and components, which enhances the complexity of product design and supply chain.

Fourth, LED side light type backlight can not give full play to the advantages of the LED point light source brightness dynamic control. Because LED is a point light source, each mounted on the backlight board within the LED grains can be individually lit or extinguished, so it can be with the different requirements to adjust the picture of bright and dark regions of LED bright and dark, so dark picture of the darker and bright part brighter, the dynamic control of the biggest bright and dark the advantage is to increase the contrast of the panel. The straight down LED backlight technology, as a result of the uniform distribution of LED on the surface of the backlight board, the