Backlit LED screens will drive semiconductor and chip market

LED backlighting and other television tech, which are making their way into a large number of LCD-TVs, will increase sales in the television semiconductor market according to a report by iSuppli.

The company has also predicted that these will make 2010 the biggest year for the market, with the year finishing at $12.1 billion compared to $9.3 billion in 2009. This leads to an annual growth of approximately 29 percent for 2010, which the company said was almost six times the 5.5 percent expansion rate posted in 2009.

According to iSuppli this is because consumers are demanding more sophisticated LCD-TVs, leading companies to incorporate more semiconductor technology. It said this would benefit the chip industry enormously in 2010

Chips used in LCD-TVs will ship in the greatest quantities during the next four years, which iSuppli said was far ahead of all other TV display technologies. In comparison, chip shipments will hold steady at the low 10,000 level for plasma, but decrease on a permanent basis for CRT.

The growth will however be nil for rear-projection types by 2012.

The single most lucrative portion and largest area of growth for the TV semiconductor market will centre on the use of LED backlights for LCD-TV panels. Currently, there are more than 150 LCD-TV models in the North American market alone that feature this technology and this will continue to grow rising from just $400 million in 2009 to more than $4 billion by 2014.

In addition to LED backlighting, a number of advanced television features, including full High-Definition (HD) 1080p resolution, internet access, wireless connectivity and frame rate conversion to support 120Hz/240Hz playback will drive the TV semiconductor space in the years to come.

This is because technology such as this requires the use of greater quantities of advanced video processor chips.

However, iSuppli said that despite the enormous publicity and hype surrounding 3D, this would not contribute to the rise of TV semiconductors.