Well developed LED (light emitting diode) television industry, suddenly came the news of the upstream chip shortage, domestic color TV manufacturers have recently bit helpless. LED TV market last year, entered the second half of the explosive growth phase, the terminal needs a sudden warming was too late to respond to the upstream market, although the chip maker full capacity, but the tight supply situation will continue for some time. Among these, the companies represented by Samsung with scale advantages, but also advance and chip manufacturers sign a “protection” of the supply agreement, further exacerbating the tight supply situation of domestic enterprises. In this regard, the domestic whole enterprise if Baotuan negotiations, may be able to calmly deal with the crisis in short supply.

Chip deficit of Qi Cheng

Started in April this year the printing on the continuous supply of LED chips tense news. To 5,6 months, chip out the problem have become increasingly prominent, many TV manufacturers have also complained that not get goods. According to Vice President Xiamen Overseas Chinese Electronic Co., Ltd. Zeng said this year’s LED TV chip a shortage situation may affect the normal development of LED TV industry.

DisplaySearch Greater China CEO Hsieh 2010 LED-backlit LCD television penetration may be, refrain. 2012, LED-backlit LCD TV will be more than the cold cathode backlight LCD TV penetration rate of more than 50%. Enterprises, Samsung, LG and Swiss Villa 3 LED TV sales target for 2010, nearly 14 million units, with Japanese manufacturers and China brands the expected 1,500 million, LED TV sales are expected this year, 5 times in 2009. If a LED chip demand TV is 1000, then one year closer to the global needs of LED chips 30 billion. LED TV chip production capacity at present is far from satisfying this demand.

It is learned that, in order to have more say in the LED market power, Samsung, AUO and so long to begin the vertical integration of industrial chain. But they are also facing a problem that can not be self-sufficient LED chip production capacity. So back in early 2009, Samsung is pushing LED TV, they begin to pack a lot under the crystalline electric chip production. Since the March 2009 start, high-brightness blue LED chips tight supply in the beginning, the end of 2009, chip makers and Formosa Epitaxy crystal power delivery has reached 6 weeks, the U.S. chip plant Cree delivery of more than 3-4 months.

Entered in 2010, the Chinese mainland and other emerging markets surge in demand on the LED TV, special promotions in the New Year and 51 under the influence of chip shortages become more pronounced.

Statistics from the chip manufacturers, the current TV with LED chip deficit of about Qi Cheng, estimated that the first quarter of 2011, LED chips are difficult to alleviate the shortage situation. It is understood that, due to the cost of LED backlight LED TV machine account for the proportion of the total cost of 10% to 15%, the shortage will contain the prices of end products, the trend of rapid decline.

Baotuan procurement security sources

It is anticipated that the global LED market will quickly rise of television, Samsung, LG the two Korean enterprises started in 2009, frequent contacts and chip manufacturers. Other enterprises, while in the blind expansion, but forgot to do one thing, that is, and chip makers to achieve “security” of the alliance. In the LED TV market, Samsung’s strategy is to first select the speculation market, so other companies to follow suit but output size has not reached certain level of seniority, and the upstream chip maker Samsung quickly signed “safeguards” supply agreement, chip makers such as large single security at the end, the general will accept the signing of the model in advance, so that strength has not been formed in other companies before the powerful TV company has grabbed the market opportunities to ensure a stable supply of goods.

According to report, as early as 2009, electricity became crystal TV chip Samsung LED strategic partners, supply about 75% of the chip, Samsung, Samsung launch LED in front of the TV, Epistar monthly revenue is less than 500 million yuan, but August revenues reached 1.248 billion yuan. Late last year, Crystal Light and Power Company and Samsung supply contract signed 2010, Samsung CLP’s commitment to the crystal is “to ensure power to buy grain more than a 2009 times higher than the number of chips.” After warming up in the LED market, Samsung has with the Can circular form alliance. Another South Korean consumer electronics maker LG, also an early lock the chip partners.

Contrast, domestic color TV enterprises, although the Hisense, Konka, Tsinghua Tongfang and other enterprises are actively involved in the LED industry, upstream manufacturers, but this requires research and development and return cycles are long, the reality of domestic color TV enterprises is how to solve the chip problem supply shortage.

China Video Industry Association, said the Deputy Secretary-General Haoya Bin, the Chinese mainland and Taiwan LCD panel in the increasingly close cooperation in the field, while the Group buy is a very important way, this chip to solve the shortage problem provides a good experience. LED source of supply in the case of the mainland machine companies should unite Taiwan chip makers to procure, so that effect.

Blame the rapid expansion of the market

As a representative of a new generation of LCD TV, LED TV has been very eye-catching. Especially in March 2009, Samsung took the lead in the global mass market LED television later, touched off concerns of global consumers.

In the first half of 2009, Samsung LED LCD TV in all of its sales of LCD TVs for less than 5%, but the second half of 2009, this proportion had reached 10%. In early 2010, Samsung Electronics China Headquarters, Minister of Liming Xu said color TV product marketing, LED LCD TV is expected to reach 3 percent ratio. As the years in the consumer electronics market, Samsung’s rapid rise, leading to the domestic color TV enterprises to follow, follow Samsung’s strategic behavior and a lot.

September 2009, claiming that six months after Samsung, China’s color TV enterprises respond to market large quantities LED TV.

After last year’s National Day promotion experience, LED TV market competition intensified. On this basis, Hisense, and with the parties have the autonomy LED backlight technology and manufacturing capabilities, Skyworth, Konka, TCL and other enterprises have the LED backlight module manufacturing capacity. In 2009, domestic machine company Hisense, Skyworth TV to make the traditional CCFL LED TV transition planning, Konka, TCL, Changhong and other brands also follow up on, and then Philips, Toshiba, Sony’s actions in this area is not obvious.

Into 2010, domestic color TV manufacturers release new products almost all LED TV. In particular, in April this year, Hisense, Skyworth and other domestic enterprises to further clear that the mainstream TV LED TV in the next few years, the strategic position in the TV business. Under the influence of domestic enterprises, Sony, Toshiba, Sharp and other companies have also raised the proportion of LED TV shipments.

However, while these companies quickly set foot LED television, and module manufacturer in the field machine, but the real power to achieve chip-making business is not much. So when the machine enterprises LED TV shipments expected to increase rapidly after the chip manufacturers appeared stretched the embarrassment, the scale of competition as the key chips in short supply reasons.

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