Press Room
Small & Medium Display Panel Shipments Beat Expectations in 2Q 2004
August 04, 2004
-  Continuing to build on the momentous growth seen since the fourth quarter of 2003, Taiwanese small and medium size display panel shipments attained a new peak in the second quarter of 2004. Shipment volume totaled approximately 137 million units, 86% year on year growth and a 25% sequential increase.

STN (Supertwist Nematic) LCD (Liquid Crystal Display) panels provided some of the thrust behind the increase. Japanese suppliers have gradually withdrawn from this technology, leaving mobile phone makers increasingly reliant on Taiwanese STN LCD panel suppliers. MSTN (Monochrome SuperTwist Nematic) LCD and CSTN (Color SuperTwist Nematic) LCD panel shipments both saw dramatic sequential gains of over 50%. The respective share held by these two technologies grew from 54% and 11% in the first quarter to 67% and 17%.

ASP (Average Selling Price) grew from US$6.5 in the first quarter to US$7.4 in the second, a 50% year on year climb. Although shipments of lower-priced MSTN LCD panels saw dramatic growth, CSTN and TFT LCD modules continued to comprise for a larger share of shipments. Furthermore, panels for mobile phones, digital still cameras, and digital video cameras continue to grow in size, while tight key component supply applied upward pressure to costs. 

Mounting volume and prices, combined with a share of color panel comprising over 70% of shipments, inspired a marked rise in shipment value. Climbing 179% year on year and 41% sequentially, shipment value topped US$1 billion.

Although both volume and value of Taiwanese small and medium panels surpassed expectations in the second quarter of 2004, other international brand-name mobile phone vendors have won market share from Chinese, Korean, and Taiwanese players, resulting in heavier than anticipated inventories. These inventories are expected to require at least one quarter before returning to normal levels, and will ultimately crimp STN LCD panel orders in the third quarter.

Yet with panel applications greeting the busier sales season in the end market, some TFT LCD panel suppliers continue to win orders from brand-name vendors for mobile phone, digital still camera, digital video camera, and PDA (Personal Digital Assistant) applications. Taiwanese small and medium size panel shipments are thus expected to rise 14% sequentially in the third quarter of 2004 to approximately 156.5 million units, 80% year on year growth.