With rapid adoption of the 4K in the TV market, the 4K LCD TV panel value chain is changing in 2014. In technology, developments such as RGBW, M+ or 1G1D (One Gate One Drain Driving) are aimed at making 4K LCD panels cheaper and more efficient. In terms of value chain relationships, Samsung Electronics and LGE are increasingly using 4K panels from their affiliated panel makers Samsung Display and LG Display, who are also increasing their activities in the China market. Meanwhile, Chinese TV makers are increasing their purchases of 4K TVs.
In our Quarterly LCD TV Value Chain & Insight Report , we calculate that global TV makers plan to purchase 20M 4K panels in 2014. According to our Monthly TFT LCD Shipment Database, panel makers are targeting to ship over 20M 4K LCD TV panels in 2014, but the 1H’14 results indicate shipments of only 6.4M, as panel makers such as AUO, BOE, ChinaStar, Samsung Display, LG Display are not meeting their targets.
In 2014, six China brands (TCL, Hisense, Haier, Changhong, Konka, Skyworth ) will purchase 7.3M 4K LCD panels, representing 36% of the global amount. The China market remains the share of the 4K TV market and LCD TV panel makers like Samsung Display, LG Display, Innolux, AUO and ChinaStar see the China market as their most important target for their 4K TV products, as shown in the table.
Samsung TV and LGE will purchase 6.1M 4K panels, representing 30% of the global total. This means that Korean brands will become leading players in the 4K market, a change from 2013 when the global 4K TV market was concentrated in China. The 4K TV market will increase the competition between Korea and China. Japanese brands (Sony, Toshiba, Sharp, Panasonic) are planning to purchase 2.5M 4K TV panels in 2014, representing 12% of the global amount.
In 2013, Taiwanese panel makers, especially Innolux, dominated the China 4K TV market. However, the China TV makers are starting to purchase more 4K TV panels from Samsung Display and LG Display. Chinese brands (TCL, Hisense, Haier, Changhong, Konka, Skyworth) will purchase 33% from Innolux, 21% from ChinaStar, 15% from LG Display, 12% from Samsung Display, 11% from AUO and 8% from BOE. This means that Taiwanese 4K panels will account for 44%, still higher than 27% for Korean panels. And Chinese-produced 4K panels, mainly from BOE and ChinaStar, will be 29%.
For main brands, the main supplier and second supplier for their 4K TV models are becoming clear. Samsung TV purchase 72% of their 4K TV panels from Samsung Display, and 19% from Innolux. AUO and Sharp are providing some specific high end or bigger size models to Samsung TV. LGE will purchase 80% of their 4K TV panels from LG Display and 20% from Innolux. Sony will purchase 55% from AUO, 36% from LG Display, and 9% from Innolux.
Brands like Toshiba, Sharp, Panasonic, TPV/Philips have the same first source-second source layout. This means that as the 4K TV market grows, TV brands are reshaping their panel purchase strategy to secure long term panel allocations.
Finally, the 2nd tier TV makers in China – including AMTC, Tongfang (which has several sub-brands in the U.S.), HKC and KTC – are rising, and these brands are becoming more important customers for panel makers, including for 4K panels. We have been tracking these brands activity in the Quarterly LCD TV Value Chain & Insight Report.
4K LCD TV Panel Value Chain in 2014