Due to Sony's earlier announcement to stop supplying HTPS panels, some makers gradually withdrew from LCD (Liquid Crystal Display) projector market, or turned to producing DLP (Digital Light Processing) projectors. Moreover, as the first three leading Taiwanese projector makers mainly produce DLP models, the upswing in industry concentration pushed DLP projector shipment share to over 90% in the first quarter. SVGA (Super Video Graphics Array) and XGA (Extended Graphics Array) projectors occupied a combined 99% shipment share, standing at a similar level as in the fourth quarter of 2003.

In the first quarter of 2004, tight supply of lamps drove up lamp prices, while lower-priced SVGA shipment share only registered a slight sequential rise, slowing the decline of digital projector ASP (Average Selling Price). As a result, amidst slight sequential increase in shipment volume and slowed price declines, shipment value grew 5% sequentially to reach US$169 million.

In the second quarter of 2004, given continual growth of the global projector market, Taiwanese digital projector shipment volume is expected to rise 30% sequentially, t. However, this expected volume growth relies heavily on whether lamp supply is sufficient, which is not likely to be resolved in the near future. The key component shortage is expected to increase industry concentration, as the first three leading Taiwanese projector makers have better control over the supply of lamps and DLP chips. With Sony gradually resuming HTPS panel supply, Taiwanese HTPS panel shipment volume is also expected to increase slightly.