- With the relief of tight lamp supply and as concerns over other component shortages faded, Taiwanese digital projector shipments jumped 114% year on year and 33% sequentially, totaling 197,000 units in the second quarter of 2004. However, industry concentration saw a marked shift into the hands of larger makers as other players withdrew due to the difficulty of sourcing components or owing to the declining margins of contract manufacturing. The two largest players accounted for 89% of shipment volume in the second quarter.
Although Sony resumed external supply of HTPS (High Temperature Poly Silicon) panels due to improved yield rates, some Taiwanese projector markers were still unable to secure a stable stream of HTPS panel supply. These players either transferred to DLP (Digital Light Processing) models, or withdrew from the industry. Further bolstered by stable supply of DMD (Digital Micromirror Device) chips, DLP share of Taiwanese volume grew to 91%. In terms of resolution, SVGA (Super Video Graphics Array) share grew one percentage point; SVGA and XGA (Extended Graphics Array) now aggregately comprise 99% of Taiwanese shipments.
The slight rise in lower-priced SVGA volume provoked a similarly small decline in ASP (Average Selling Price). Shipment value grew 79% year on year and 33% sequentially to US$237 million.
In the third quarter of 2004, the end market is expected to continue growing while the major key component supply issues have been solved. Volume is therefore anticipated to grow by over 10%. Industry concentration will mount given the stronger grip the top two players have over key component supply. Share of DLP projectors is also expected to continue its advance given the stronger support given by TI compared to HTPS panel suppliers.