Through promotions such as the rural subsidy program, demand for LCD TVs in China surged to almost 40 million units in 2010 surpassing the US to became the largest LCD TV market worldwide, according to data from research firms.

Local vendors including Changhong, Haier, Hisense, Konka, Skyworth and TCL accounted for third-quarters of the China LCD TV market, and 15% of TV panel shipments.

Chimei Innolux (CMI) accounted for the highest market share in the TV panel market in China in 2010, followed by LG Display and Samsung Electronics.

CMI accounted for 32% of the total TV panel demand from the top-six TV vendors in 2010, 21% for LG Display and 18% for Samsung

Taiwan-based panel makers accounted for 52% of the total TV panel shipments to the top-six TV vendors, and 39% for Korea-based panel makers. Due to pressure to reduce costs, vendors increased purchase ratios for cell-panels to 26% in 2010 and are expected to increase to 46% in 2011.

Looking into 2011, China LCD TV demand is expected to exceed 45 million units, up almost 20% on year, and China-based vendors are expected to continue to increase their market share.