Taiwan’s LCD Makers Go For 3D TV
Taiwan’s LCD manufacturing companies like AU Optronics Corp., Chimei Innolux Corp. and Chunghwa Picture Tubes Ltd. are seeking to boost their value in the TV supply chain by shifting their focus to the 3D technology. They are lagging far behind than their Japanese and Korean rivals in upgrading their panel production technologies over the past few years. The interest of the Taiwanese companies will bring a growth in the volume of 3D TV’s, likely to reduce their prices. This in turn will tighten up the profit margins of the companies manufacturing 3D TV’s.
According to analysts the increase in the production and shipment of these panels will result in a decline of 5% in the average selling price by the end of this year and as much as 10% in 2011. Companies like Samsung Electronics, Sony Corp. and Sharp Corp. don’t outsource production of 3D panels, as they prefer to rely on in-house technology to ensure quality control. Analysts have also suggested that panel makers such AU Optronics and Chimei Innolux may start earning profits as soon as they can provide cheaper 3D-enabled panels.
Chimei Innolux was formed by the merger of Chi Mei Optoelectronics and Innolux Display Corp. in March. It has been one of the most determined innovators of 3D devices. The company started mass-producing 22-inch 3D panels for gaming and introduced 47-inch 3D panels that don’t require glasses in June 2009.
Chimei is likely to benefit hugely in the future from outsourcing of 3D panels as the firm is able to provide a complete solution for TV brands ranging from panel-making to set assembly. Chimei Innolux’s majority shareholder is Hon Hai Precision Industry Co., which is the world’s largest contract electronics maker by revenue. As of now all the three Taiwanese panel makers have refused to disclose how much they are investing in 3D technology.
Chunghwa Picture Tubes focuses on small and medium-size panels and has started shipping display panels compatible with shutter glasses. These panels are used in combination with a screen to create a 3D illusion for a 3D laptop introduced by AsusTek Computer Inc. last year. Chunghwa Picture Tubes has invested resources for the past two years to develop the 3D technology. The company firmly believes that 3D technology will be a market trend. The company plans to add 3D functions to add several percentage points to their margins as compared to those for ordinary 2D panels. But the technological challenges still persist as most of the times viewers need to wear either shutter glasses or polarized glasses to view 3D. The glasses-free 3D technology is still in prototype stage and requires viewers to view the displays from specific angles.
According to research firm iSuppli Corp, global sales of 3D TVs is likely to reach 78 million units by 2015, up from 4.2 million this year. The industry revenue is expected to reach $64.3 billion in 2015 from an estimated $7.4 billion this year. The success of Avatar has created a very strong demand for 3D technology and now everybody wants to provide a unique experience to his customers.
