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Optoelectronics/Displays??

LCD market gets back on track

Posted: 02 Oct 2006 ?? ?Print Version ?Bookmark and Share

Keywords:LCD? LCDs? iSuppli? desktop PC monitor? LCD panel?

Evidence that the LCD market has reversed its almost year-long slump continues to grow, according to two market research organizations.

Prices of 17-inch LCD panels for desktop PC monitors will increase by 19 percent in the second half, according to a report from market research firm iSuppli Corp., rising to $123 in December from $102 in July.

An August report by WitsView projected that prices of both 17-inch and 19-inch LCD monitor panels will go up slightly in the succeeding months as monitor demand continued to improve. The rise in prices brings an end to the weak market conditions that had plagued large (10-inch and over) LCD panels since the latter part of 2005.

According to iSuppli, prices of 17-inch monitor panels have declined since last October because of lower-than-expected demand, increased panel inventory in the PC distribution channel, rising capacity at next-generation LCD fabs and brand manufacturers' efforts to reduce inventory in order to mitigate risk.

However, by late Q2, most LCD panel suppliers had already started cutting utilization rates.

The dire situation forced some panel suppliers to cut their 2006 and 2007 capital expenditures, and delay expansion or construction of 7.5- and eighth-generation fabs, iSuppli said. Those decisions are likely to tighten supply and slow down LCD-TV panel reductions during the second half of this year, iSuppli said.

If TV demand remains strong, slower expansion of next-generation fabs could squeeze the supply of monitor and notebook panels, the report added.

- Spencer Chin
EE Times




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