TFT LCD fab use drops

Average TFT LCD array glass input utilization dropped from 94.7 percent in Q3 2005 to 86 percent in Q2 2006, according to market research firm DisplaySearch Inc.

The precipitous drop in display fab utilization occurs as LCD panel suppliers find themselves with abundant capacity as inventories soar, prices fall, and demand is spotty, the market research firm said in a report. DisplaySearch expects fab utilization to recover slightly in the third quarter and rise toward the year's end as panel demand improves.

Signs of malaise among display panel and glass suppliers are everywhere.

Earlier Tuesday, South Korea LCD panel supplier LG.Philips LCD Co. Inc. posted its largest ever quarterly loss, prompting the company to adjust its capital spending plans. The company said it would readjust the timing and size of its investment in its Gen 8 (P8) LCD facility under construction in Paju. Instead, it will invest $583 million in a multipurpose Gen 5.5 facility which will be housed in the P8 facility.

In May, LCD glass supplier Corning Inc. lowered its guidance in response to slowing demand, although the company still expects glass production to rise 40 percent over the previous year's levels.

- Spencer Chin
EE Times