According to Market Intelligence Center (MIC), in the fourth quarter of 2005, owing to end-market demand growth and enhancement in the output and yield rate of new production lines, shipment volume of Taiwanese large area TFT (Thin Film Transistor) LCD (Liquid Crystal Display) industry exceeded 40 million units. With the increased shipment share of larger area panels boosting the ASP (Average Selling Price), shipment value of he Taiwanese large area TFT LCD also topped the US$5 billion mark, for over 100% of year-on-year growth.

Spurred by the strong demand from the notebook PC market, shipment volume of notebook PC panels recorded conspicuous growth. The slackening demand in the off-season curbed the growth in the shipment volume of LCD monitor panels. Due to large-scale increase in the output and yield rate of the enhanced fifth and sixth production lines of the Taiwanese large-area TFT LCD panel industry, plus the higher-than-expected demand for LCD TV in the end market, shipment volume of LCD TV panels registered considerable growth.

In the first quarter of 2006, demand from the notebook PC market and the LCD TV market is expected to remain strong. With the replacement cycle having reached its peak, plus the seasonal factor, growth momentum for the LCD monitor market will slacken. In the second quarter, excepting the LCD TV market, which is expected to maintain strong growth, notebook PC and LCD monitor panels will slacken. Shipment volume of the Taiwanese large-area TFT LCD panels is projected to surpass 3.5 million units in the first quarter of 2006 and cross the four million mark in the second quarter.

With the manufacturing technology for the enhanced fifth and sixth generation production lines of the Taiwanese large area TFT LCD panel industry becoming increasingly mature, shipment share of 32" LCD TV panels will increase further, but their prices will decline due to the acute competition. With the inauguration of the sixth-generation production lines of CPT (Chunghwa Picture Tube) and QDI (Quanta Display Inc.), shipment volume of 37" LCD TV panels will record marked growth but with 40" models having received considerable market reception, the development room for 37" models remains to be seen.