The low confidence in the economy has been weakening demand for LED TVs. But according to LCD panel maker AU Optronics (AUO), the penetration of LED-backlit TVs in 2012 is expected to reach 60-70%. AUO also said high-end naked eye 3D TV panels will begin production in the fourth quarter.

AUO vice president Paul Peng said that cost concerns over LED TVs' low prices in the end market have led TV and panel makers to give up the competition in producing ultraslim TVs.

Instead, LED TVs with panel thickness of 40mm, which is similar to the LCD TV specification three years ago, will meet the market in 2012 in order to make products more price competitive and able to compete with CCFL models, Peng said.

He pointed out that consumers expect more values added to TVs without paying more, and these expectations are making LED and 3D TVs difficult to sell at high prices.

Peng said AUO will release thicker-looking LED backlit panels in 2012, with 32- and 42-inch being mainstream. The thicker models target emerging markets and lower-end TV products.

He said that 3D TV panels will still be one of AUO's focuses in 2012, and they will account for 6% of AUO's panel production in 2011.