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Key Component Shortages Hurt LED Backlight Units
Jul 19, 2010
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The LED backlight unit has emerged as a key factor in the TFT LCD industry, and is expected to maintain its growth momentum for the next several years, but market research firm DisplaySearch said LCD makers suffered from key component shortages for LED backlights in the first quarter of 2010.

The firm said many reflector film suppliers were stretched between demand from LCD and solar cell applications. In addition, many LED makers faced a sapphire substrate shortage.

“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,” said Kevin Kwak, DisplaySearch Research Director.

Nevertheless, the firm predicts LED backlight shipments will pass those of CCFL backlights in large-area TFT LCD panels and achieve 80% penetration by the fourth quarter of 2012.

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