Samsung and LG.Philips LCD have been adopting different strategies to cut costs on backlight modules, which currently comprise over 50% of large size LCD (Liquid Crystal Display) materials costs. Samsung is focusing efforts on area light source, while LG.Philips has expanded adoption of EEFL (External Electrode Fluorescent Lamp) modules. Competition between these players in the backlight segment not only poses an impact to LCD panel makers, but also promises to reshape the competitive dynamics of backlight and lamp suppliers.

 

LG.Philips completed development 30" LCD TV panels using EEFL backlight in March 2004 and has proceeded with production. The company has also worked to widen the scope of EEFL backlight adoption to 32" panels. LG.Philips is reportedly the only maker that has commercialized the backlight technology.

 

Pointing to the advantages of the technology, LG.Philips has noted that using CCFL (Cold Cathode Fluorescent Lamp) requires an inverter for each lamp. EEFL, however, is said to bring total inverter count down to between two and four, cutting costs, improving yield rates, boosting luminous efficacy, and lowering power draw by roughly 20%.

 

Through Samsung Corning, Samsung is developing area light source and has decided to rollout 32" panels adopting the technology in early 2005. Samsung Corning will be investing 100 billion Won (US$87.6 million; US$1 = 1.14 Won) to build an area light source production line located in Asan, the site of its 7G line.

 

Samsung has noted that area light source technology only requires one lamp and inverter, and does not necessitate the use of the costly prism sheet. Samsung claims the technology translates into costs of up to 20% to 30%, and allows for the automation of backlight assembly and module production processes.

 

Despite the necessity of lowering backlight costs, both technologies possess limitations. EEFL has been effective for panels around 30", yet effectiveness drops considerably above 40". Additional inverters need to be added, which creates the challenge of addressing the greater heat produced. For Samsung's light area source, a newer generation solution, initial yield rates will be key. Samsung has thus also been developing EEFL to hedge against risk.

 

LG.Philips is not known to have developed EEFL for 37" panels. Yet Harison Toshiba Lighting, the largest CCDL supplier, has aggressively rolled out U-shaped CCFL for use with LCD TV panel. This could damper the motivation of other makers toward developing and producing EEFL.