Some LCD panels have defective transistors, causing permanently lit or unlit pixels which are commonly referred to as stuck pixels or dead pixels respectively. Unlike integrated circuits (ICs), LCD panels with a few defective transistors are usually still usable. It is claimed that it is economically prohibitive to discard a panel with just a few defective pixels because LCD panels are much larger than ICs, but this has never been proven. Manufacturers' policies for the acceptable number of defective pixels vary greatly. At one point, Samsung held a zero-tolerance policy for LCD monitors sold in Korea. Currently, though, Samsung adheres to the less restrictive ISO 13406-2 standard. Other companies have been known to tolerate as many as 11 dead pixels in their policies. Dead pixel policies are often hotly debated between manufacturers and customers. To regulate the acceptability of defects and to protect the end user, ISO released the ISO 13406-2 standard. However, not every LCD manufacturer conforms to the ISO standard and the ISO standard is quite often interpreted in different ways.
LCD panels are more likely to have defects than most ICs due to their larger size. For example, a 300 mm SVGA LCD has 8 defects and a 150 mm wafer has only 3 defects. However, 134 of the 137 dies on the wafer will be acceptable, whereas rejection of the LCD panel would be a 0% yield. Due to competition between manufacturers quality control has been improved. An SVGA LCD panel with 4 defective pixels is usually considered defective and customers can request an exchange for a new one. Some manufacturers, notably in South Korea where some of the largest LCD panel manufacturers, such as LG, are located, now have "zero defective pixel guarantee", which is an extra screening process which can then determine "A" and "B" grade panels. Many manufacturers would replace a product even with one defective pixel. Even where such guarantees do not exist, the location of defective pixels is important. A display with only a few defective pixels may be unacceptable if the defective pixels are near each other. Manufacturers may also relax their replacement criteria when defective pixels are in the center of the viewing area.
LCD panels also have defects known as clouding (or less commonly mura), which describes the uneven patches of changes in luminance. It is most visible in dark or black areas of displayed scenes.