The Taiwanese large-area TFT-LCD panel industry is projected to ship around 110.5 million units in the first half of 2014, down 1.4% year-on-year, said MIC (Market Intelligence & Consulting Institute). In the second half of the year, the industry's shipment volume is expected to dip 0.7% compared to the first half as some vendors allocate partial production capacity for notebook PC to make small and medium-sized panels.

Pei-Fen Hsieh, senior industry analyst at MIC, said that the industry's shipment volume in the second half of the year will be affected by a decreasing share of IT panels as well as LCD TV vendors' deployment in larger-sized products that have better profits.

In the first half of 2014, the industry's shipment value is expected to fall 10.6% year-on-year to US$9.54 billion. This is mainly attributed to an increasing share of notebook PC panels in the overall shipments, as well as the continuous decline in TV panel price in the first quarter. Looking ahead to the second half of the year, the industry's ASP (Average Selling Price) will improve as LCD TV panel price rebound and high-end panel takes up a larger share in overall shipments.

Regarding the Taiwanese LCD TV industry, with vendors launching new products and channel distributors building up inventories in anticipation of the upcoming FIFA World Cup 2014, the industry's shipments have seen a significant growth in the second quarter, expecting to reach around 17.03 million units in the first half of 2014, up 4.5% year- on-year. The industry's shipment value will stand at US$6.03 billion in the first half of 2014, inching up 2% year-on-year.

Hsieh indicated that the uptick in shipment value is due to US and Chinese vendors' increasing interest in large-area products, coupled with Japanese vendors' concentration on high-end models. However, as the worldwide LCD TV market has become saturated, the World Cup will have rather limited effects on stimulating demand. It is projected that the industry's shipment volume will reach 18.97 million units in the second half of the year—lower than peak season figures seen in previous years.

The Taiwanese monitor panel shipments will slide around 10% year-on-year in the first half of 2014 despite the pull-in demand from the distribution channels. To increase panel area, monitor panel makers have launched new panel size of 23.8 inches, which is welcomed by monitor vendors who are promoting 23.8- and 24-inch models and other niche products in an attempt to increase product ASP. Looking ahead, with the coming of the peak season and growing enterprise replacement demand, the monitor panel industry's shipments will improve in the fourth quarter. It is expected that the industry's shipment volume will arrive at around 44.49 million units in the second half of 2014, up 4% year-on-year.

Meanwhile, due to product mix adjustment and a plunge in feature phone panel shipments, MIC estimates that the small and medium-sized TFT-LCD panel shipments will fall to 653.22 million units in the first half of 2014, down 15% year-on-year.

Hsieh said that, as the smartphone industry is moving toward higher specifications with more affordable prices, four- and five-inch panel will become mainstay. With mid-range and value-line smartphones continuing to flourish in the Chinese market, shipment volume and ASP of small and medium-sized TFT-LCD panel will keep growing. MIC forecasts that the industry's shipment value will reach US$4.8 billion in the second half of 2014, up 18% compared to the Jan-Jun period.

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About MIC

Market Intelligence & Consulting Institute (MIC), based in Taipei, Taiwan, was founded in 1987. MIC is Taiwan's premier IT industry research and consulting firm providing intelligence, in-depth analysis, and strategic consulting services on global IT product and technology trends, focusing on markets and industries in Asia-Pacific. MIC is part of the Institute for Information Industry. https://mic.iii.org.tw/english