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Optoelectronics/Displays??

DisplaySearch expects LCD capacity surplus to grow

Posted: 13 Oct 2005 ?? ?Print Version ?Bookmark and Share

Keywords:lcd? liquid crystal display? panel array? tft lcd? displaysearch?

Market research firm DisplaySearch Inc. said that raw liquid crystal display (LCD) panel array capacity supply was sufficient in the third quarter, with the panel capacity surplus to widen into 2006.

DisplaySearch has raised its TFT LCD equipment spending forecast for 2006 to $9.37 billion, slightly below the 2005 level of $9.6 billion. This significant spending, continuing from 2004, is projected to generate a long term array capacity surplus.

Long-term capital spending is projected to be flat, closer to spending levels of 2003.

According to DisplaySearch vice president Charles Annis, "Demand in the first three quarters of the year proved stronger than expected, which has somewhat bolstered market expectations and improved the outlook for future investments. Fab investments continue to be planned and made in order to position for an upturn expected by panel manufacturers."

DisplaySearch noted that the top three TFT LCD capital equipment spenders will be Samsung at $1.3 billion, AU Optronics at $1.1 billion, and Chi-Mei Optoelectronics at $994 million, with respective market shares of 17.9, 14.8, and 13.3 percent respectively.

Total active-matrix LCD capacity is expected to rise at a compound annual growth rate of 39 percent from 4.5 million in 2000 to 81.5 million square meters in 2009. Over the same period, color filter capacity is growing at a 38 percent compound annual growth rate, from 5.2 million to 93.5 million square meters.





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