LED count in TV BLUs to fall by 30% at the end of 2010, says AUO
DIGITIMES 2010/04/16
Siu Han, Taipei; Yvonne Yu, DIGITIMES [Thursday 15 April 2010]

The volume of LEDs used in TV backlight units (BLUs) will reduce by about 30% at the end of 2010 when single-side edge-type LED BLUs enter mass production, according to AU Optronics (AUO).

The single-side edge-type LED BLUs will be applied to new LCD TVs in 2011, AUO added.

LED-backlit models will account for 90% of the global notebook market, and 20% each of the LCD TV and monitor markets in 2010, AUO noted, adding that LED-backlit TV share will reach 30-40% at the end of 2010. AUO indicated that the market share of LED-backlit TVs will continue to increase and the only concern is whether LED supply can catch up with the rising demand.

Lee Biing-jye, chairman of LED chipmaker Epistar, noted that LED-backlit TVs’ market share at the beginning of 2010 was only 5% and will need to reach 35% at the end of the year in order to reach an average 20% for the whole year. He added that LED-backlit TVs’ market share will reach 45% in 2011.

Players in the LED sector indicated that with TV vendors significantly increasing their orders for LEDs, supply of LEDs was about 30-40% short of demand in the first quarter of 2010, and order visibility for LEDs has already extended to the end of second quarter. They are expected to raise prices to reflect increased material costs.

However, Lite-On Technology CEO Teng Kuang-chung has argued that the shortage of LEDs will not continue for long, as LCD TV vendors are striving to cut costs by lowering the number of LEDs in their products, and LED chipmakers are fast expanding their capacities.

AUO in Development for Lower Number of LEDs Used in TV Application
04/19/2010

AUO says LEDs used in TV Backlight Unit (BLU) will be lowered by about 30% by the end of this year. This is made possible because of 1-bar LED edge-type. The 1-bar edge-type LED BLU will start to be applied to TV application from year 2011.

AUO says LED BLU equipped model show 90% share in Notebook and 20% in TV and Monitor application that at the end of 2010, the penetration for TV application will reach 30~40%. LED penetration for TV application depend on the factor whether LED supply can cover the growing demand of the application.

Lee Biing-Jye, President of Epistar mention that LED (backlit) LCD TVs only show 5% penetration in early 2010 but is expected to increase towards 35% at the end of this year and will most likely show 20% overall penetration this year. In 2011, expectation rises to 45%.

In TV sector, TV vendors are sharply increasing LED orders and showed 30~40% shortage during 1Q, 2010. LED ordering period have already extended towards second-quarter and is expected to increase price reflecting increases in the BOM.

But Lite-On Technology CEO, Teng Kuang-Chung says LED shortage would not continue for a longer period and this is because LCD TV makers are endeavoring to lower the cost by attempt to lower the number of LEDs used in applications and chip makers are expanding their capacity fast.

Reference: http://www.displaybank.com/eng/info/sread.php?id=5740&pg=1&device2=

Rapidly Advancing Edge-Type LED BLU Technology – Reduced Number of LED Bar
Displaybank Market Insight

Introduction: 3D LED LCD TV in Analyst’s Perspective

New 3D LED LCD TV products are launched one after another. In 2009, the word, “LED”, was added to LCD TV products with LED backlight and they were called LED (backlit) LCD TV (or LED TV). This year, word “3D” is added and the products are called 3D LED LCD TV (there is also 3D CCFL LCD TV). Differentiations mean premium products. These products ask for higher prices since they have added functions through differentiations.

Samsung Electronics’ 55″ 3D LED LCD TV (C7000 Series) is currently traded around KRW 4 million in Korea. 55″ LED LCD TV (C6500 Series) which excludes 3D functions is traded around KRW 3.5 million. After all, the current premium of 3D appears to be about KRW 500,000. With this KRW 500,000 price premium, following questions are asked to tentative purchasers (in addition, the premium for 46″ product is about KRW 400,000).

Q. The price for 55″ 3D LED LCD TV applied with 3D functions is KRW 4 million and the price for LED LCD TV without 3D functions is KRW 3.5 million.

What is your choice? As a result of presenting this question to numerous people inside and outside the company, the ratio of answers was 5:5. Yes, it is close. The proper behavior in this situation is to remain halfway.

A person who seeks 3D focuses on the 3D itself. Regardless its quality or presence of contents, he or she wants to have an insurance called “3D function enabled” since no one knows what will happen in the future. A person who sees no need for 3D functions says that there is no 3D content and the image quality transitioning from 2D to 3D is below expectations. In addition, he or she says the 3D was only an adjunctive element to the film, Avatar, and the film itself was outstanding. In other words, this person believes that people went wild about the film rather than the 3D (2D Avatar was fantastic as well!).

Their basic stance is like this; a pessimistic person speaks about further perfected technology and infrastructure, whereas an optimistic person focuses on the potential of 3D (well¡¦ maybe related engineers are pessimistic and people in marketing or operation fields are optimistic).

Let’s talk about panels for a moment. What will be the price difference between the LED LCD TV panel and the 3D LED LCD TV panel? According to the current price calculation made by Displaybank, the price gap is about $200. In other words, the 3D LED LCD TV panel is sold about $200 higher than the panel without 3D functions. If you were to sell panels, which one would you sell? In the end, makers endeavor to sell products that generate more revenue and profit.

Lastly, we will ask above questions from seller’s perspective.

“You will watch TV for many years. If you buy a product without 3D functions, you may regret purchasing it later on. You won’t even remember how much you’ve purchased this for. You will think you did good taking my advice when you simply put on glasses and watch 3D. I’ll give you two more glasses for free so you can watch with three other people.”

Reference: http://www.displaybank.com

AU Optronics to Exhibit Innovative Display Applications and Power-Saving Green Technologies at FPD China 2010
Press Release Source: AU Optronics Corp. On Monday March 15, 2010, 3:36 am EDT

HSINCHU, Taiwan, March 15 /PRNewswire-Asia-FirstCall/ — AU Optronics Corp. (“AUO” or the “Company”) (TAIEX: 2409; NYSE: AUO) will exhibit at FPD China 2010 at the Shanghai New International Expo Center (SNIEC) from March 16-18 to demonstrate a full range of innovative display applications and power-saving green technologies. 3D display technologies with panels ranging from 8 to 65 inches, the full range of 42 to 55-inch power-saving and LED backlit LCD TV panels, multi-touch LED panels with applications to desktop and notebook PC monitors, small and medium-sized AMOLED and e-paper display applications are among the wide array of exhibits that will be at the show.

With “Innovative Green Technologies, Amazing Digital Life” as the theme of this year’s show, AUO hopes to employ innovative and power-saving green technologies to create a whole new viewing experience for a comfortable and fascinating lifestyle. The exhibition area is divided into several sections, including PID applications, 3D displays, power-saving and LED backlit LCD TV panels, ultra-wide LCD TV panels, IT applications, general display applications, high contrast/VA technologies, in-cell multi-touch panels, AMOLED and e-paper.

3D Displays

AUO will exhibit the latest 3D display technologies, such as the glasses- free barrier and lenticular lens types, and pattern retarder full HD 3D panels to be viewed with special glasses, with panels ranging from 8 to 65 inches. Of the exhibits, the 65-inch pattern retarder full HD 3D panel is the largest commercialized 3D TV panel available and will go into mass production in the second half of 2010. Impressive high-resolution 3D images can be captured with the help of polarized 3D glasses. The glasses weigh only 10 grams and come at a reasonable price, averaging US$2~3 per pair. For those who already own glasses, one must merely clip polarized lenses onto the regular frame for a 3D visual feast. This 3D panel is especially suited for large-sized three- dimensional displays in home theaters.

Power-Saving and LED Backlit LCD TV Panels

The trend toward eco-friendly power-saving TVs is irreversible. In view of this, AUO will demonstrate 42 to 55-inch power-saving and LED backlit LCD TV panels in the LCD TV Applications Section. The 46-inch full HD LCD panel consumes just 68w of power, 2.5 times less than traditional TV panels, and is the world’s No. 1 in terms of power efficiency*. Meanwhile, the 42-inch full HD LCD panel with edge-type LED backlight reduces power consumption by as much as 50% and provides a dynamic contrast ratio of up to 1,000,000:1. In addition, 42, 46 and 55-inch full HD LED backlit LCD TV panels will be on display. The high-contrast panels, equipped with 10.8mm ultra-slim edge-type LED backlighting, are light, slim, and energy efficient.

IT Applications

To demonstrate its prowess in power-saving technology, AUO will showcase the 27-inch CCFL LCD panel for desktop PCs that is currently the world’s slimmest and most energy efficient*. The panel is just 16.2mm thick, with ultra-high luminance and ultra-low power consumption at less than 30w. The eco-friendly power-saving backlight, reduced from 6 to 4 tubes, is low in mercury, adhering to Energy Star 5.0 standards.

E-Paper

AUO is an active player in the e-paper market and has been devoting efforts to the research and development of e-paper in all sizes. The SiPix Microcup(R) e-paper technology and products will make their debut in China. Products such as the 2-inch e-tag, the 4.3-inch e-book, and 6 and 9-inch e- books with in-cell multi-touch panels will be showcased. In addition, a 20- inch e-paper display module for electronic bulletin boards, a 6-inch foldable e-book module and flexible e-paper technologies are also to be seen at the show.

“China has soared to become the world’s largest PC and TV market as demand skyrockets,” said Paul Peng, AUO’s Executive VP of Global Business Unit. “AUO has been actively advancing in the Chinese market over the years and will continue to strengthen its cooperation with local clients and business partners, so that it can provide this enormous market with the most advanced, eco-friendly and energy efficient display technologies and facilitate a more convenient and vibrant digital lifestyle.”

The 2010 China FPD Conference, the most eminent technological event for China’s FPD industry, will be held alongside FPD China. Dr. Fang-Chen Luo, AUO’s VP & CTO, will be delivering a keynote speech entitled, “The Development of Active Matrix LCDs” on the second floor of the Yongda International Tower Convention Center in Pudong, Shanghai on March 16 at 10 a.m. Later at 4:30 p.m. on the same day, Paul Peng, Executive VP of AUO’s Global Business Unit, will take part in the FPD China Forum 2010 as a panelist to present his views on the “Localization of Panel Manufacturing in China.” Visitors to the show are most welcome to attend the event.

*Based on available market research information as of March 15, 2010.

About AU Optronics

AU Optronics Corp. (AUO) is a worldwide top three manufacturer* of thin film transistor liquid crystal display panels (TFT-LCD). AUO is able to provide customers with a full range of panel sizes and comprehensive applications, offering TFT-LCD panels in sizes ranging from 1.2 inches to greater than 65 inches. AUO generated NT$359.3 billion (US$11.2 billion) in sales revenue in 2009 and now houses a staff of more than 42,000 employees, with global operations in Taiwan, Mainland China, Japan, Singapore, South Korea, the U.S., and Europe. Additionally, AUO is the first pure TFT-LCD manufacturer to be successfully listed at the New York Stock Exchange (NYSE). AUO extended its market to the green energy industry in late 2008, and formally founded its Solar Photovoltaic Business Unit in October, 2009. For more information, please visit AUO.com.

* DisplaySearch 4Q2009 WW Large-Area TFT-LCD Shipment Report. This data is used for reference only and AUO does not make any endorsement or representation in connection therewith. 2009 year end revenue converted at an exchange rate of NTD31.95:USD1.

Safe Harbour Notice

AU Optronics Corp. (“AUO” or the “Company”) (TAIEX: 2409; NYSE: AUO), a worldwide top three manufacturer of large-size TFT-LCD panels, today announced the above news. Except for statements in respect of historical matters, the statements contained in this Release are “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. These forward-looking statements were based on our management’s expectations, projections and beliefs at the time regarding matters including, among other things, future revenues and costs, financial performance, technology changes, capacity, utilization rates, yields, process and geographical diversification, future expansion plans and business strategy. Such forward looking statements are subject to a number of known and unknown risks and uncertainties that can cause actual results to differ materially from those expressed or implied by such statements, including risks related to the flat panel display industry, the TFT-LCD market, acceptance of and demand for our products, technological and development risks, competitive factors, and other risks described in the section entitled “Risk Factors” in our Form 20-F filed with the United States Securities and Exchange Commission on June 4th, 2008.

Reference: http://finance.yahoo.com/news/AU-Optronics-to-Exhibit-prnews-235657098.html?x=0&.v=56