Flat-screen panel makers Innolux Corp (群創光電) and AU Optronics Corp (AUO, 友達光電) are forecast to lead global shipments of ultra-high-definition 4K2K panels this year, as such panels have become increasingly available and affordable to TV manufacturers.
The two companies are expected to have a combined 58 percent share of the global market this year, according to the latest research report from market intelligence firm NPD DisplaySearch.
The two firms will be followed by South Korean manufacturers Samsung Display Co and LG Display Co with an estimated 25 percent share, and Chinese makers China Star Optoelectronics Technology Co (華星光電) and BOE Technology Group Co (京東方) with a combined share of 14 percent.
As Chinese brands continue to lead 4K2K TV manufacturing and shipments, demand from China’s top six TV brands is crucial to all panel makers, DisplaySearch said.
The trend is evidenced in that China Star expects 90 percent of its 4K2K TV panels to go to China’s top six TV brands, compared with BOE’s 70 percent, Innolux’s 57 percent and AUO’s 56 percent.
By contrast, Samsung Display and LG Display have relatively modest plans for 4K2K panel production and expect much to go to their own affiliated TV brands.
“The rise of the 4K TV market is mainly driven by the supply side, while leading TV brands are concerned about the value proposition of 4K TVs,” said Deborah Yang (楊靜萍), research director for monitors and TV for NPD DisplaySearch.
“While some TV brands are considering increasing their 4K TV shipment targets, we continue to see a mismatch between 4K TV panel supply plans and consumer purchasing expectations,” she said.
According to data compiled by Taipei-based display research house WitsView, 4K2K TV panel shipments worldwide came to a total of 3.1 million units last year, representing a penetration rate of 1.3 percent.
Innolux, which has technology advantages and aggressive pricing strategies, controlled 64 percent of the 4K2K TV panel segment, followed by China Star with 14 percent, AUO with 12 percent, LG Display with 5 percent and Samsung Display with 5 percent, according to WitsView statistics.