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Taiwan overtake Korean players in LCD TV panel shipments

Posted: 21 Mar 2005 ?? ?Print Version ?Bookmark and Share

Keywords:lcd tv panel?

The Taiwan LCD panel shipment jumped to 74 percent sequentially, reaching 1.6 million units during the fourth quarter of 2004, according to Market Intelligence Center (MIC), a Taipei-based ICT industry research house. The growth marks the first time Taiwan's LCD TV panel exceeded output from rival in South Korea that shipped 1.5 million units during the same period.

"In previous quarters Taiwanese makers had been working to boost output of higher-margin LCD TV panels, and by the fourth quarter a combination of higher 5G yield rates and brisk demand for LCD TVs 30-inch and up generated an explosion in panel growth," explained Annabelle Hsu, senior industry analyst with MIC.

"And as Taiwanese panel suppliers close the technology gap with Korean players, the resulting influx of volume is driving price competition throughout the East Asian panel industry -- competition that is driving end-market demand " added Hsu.

According to MIC, panel produced by Taiwan makers totaled 17 million units, accounting for 44 percent of East Asian shipment volume and leading Korea's 16.7 million figures. Japanese makers, who have gradually shifted over to small and medium size panel production, saw shipment volume drop to roughly 3.8 million units.

Samsung remained the largest producer worldwide in the fourth quarter, followed by LG.Philips, which stayed in second place despite expansions on its 6G and second 5G lines. AUO and CMO shipped the third and fourth highest volume, respectively.

Of the major large panel applications supplied by the three major national industries in the fourth quarter of 2004, Taiwan persisted in supplying the bulk of LCD monitor panels, while South Korean players remained the top panel suppliers for notebook PC.

Despite the general state of oversupply, a shortage of 17-inch LCD monitor panel still emerged in the fourth quarter. MIC pointed out that as demand for 17-inch models thrived due to the narrowing price gap with 15-inch models, panel suppliers were unable to switch over production lines in time. In the LCD TV segment, 20-inch and 32-inch models were also met with robust demand, which in light of the minority of players capable of supplying 32-inch panels, created tight supply of these panel sizes as well.

In presenting their outlook for the East Asian LCD panel industry in the first half of 2005, MIC noted that price erosion would likely be sustained due to aggressive capacity expansions and price competition from newer entrants BOE-OT, Innolux, and SVA-NEC. "Unless demand in the end-market picks up at a stronger pace than is expected, we anticipate oversupply to persist," said Hsu.

Such declines are likely to restrain aggregate shipment value, even despite the progressive movement toward larger sizes. However, MIC expects that certain panel sizes such as 17-inch, 20-inch, and 32-inch will see a slower pace of price decline given the popularity of models using these sizes in the end market.

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