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TFT LCD equipment sector falls below expectations

Posted: 21 Feb 2006 ?? ?Print Version ?Bookmark and Share

Keywords:Information Network? array processing equipment? TFT LCD?

The Information Network revealed that the global market for array processing equipment for TFT LCDs posted a growth rate of 5.5 percent last year, falling short of earlier expectations.

Robert Castellano, president of The Information Network, said that in 2004, equipment was purchased in preparation for the new 5G, 6G and 7G facilities that began operations last year. "An oversupply of LCDs, a result of the aggressive capacity expansion from these large plant investments, was responsible for the slowdown in array processing equipment purchases to only a 5.5 percent growth in 2005, down (but not far) from the 7 percent growth projection we made way back in late 2004," said Castellano.

The firm also forecasts that capacity for the LCD segment will continue to surge this year from 6 million sqm in 2005 to 9 million sqm by end-2006.

"We project that the oversupply situation in LCD panels, which averaged 6 percent in 2005, to double to more than 13 percent in 2006," Castellano added.

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