According to Market Intelligence Center (MIC), due to the off-season effect and buildup in panel inventory resulting from lower-than-expected demand in the first quarter and new production capacity having come online in the fourth quarter of 2005, shipment volume of Taiwanese large area TFT LCD (Thin Film Transistor Liquid Crystal Display) panels reached 29.7 million units in the first quarter of 2006, representing a sequential decline of 0.4%. This development, plus the continuing decline in panel prices, drove down shipment value of Taiwanese large area TFT LCD panels by 6.8% sequentially in the first quarter to about US$5.2 billion.
Due to oversupply, prices of various large area TFT LCD panels dropped, ranging from 12% to 17%, with LCD monitor panels suffering the steepest decline on weak end-market demand. In the first quarter of 2006 ASP (Average Selling Price) of Taiwanese large area TFL LCD panels slid 6% sequentially to US$175.
Following an end to inventory problems, shipment volume of Taiwanese large area TFT LCD panels is expected to resume growth and reach approximately 34 million units in the second quarter of 2006. Growth of PC panel shipment volume is expected to slow down, due to the fact that this market segment is becoming mature. However, due to continuous expansion of the capacities of 5G and higher production lines, plus the increase in market demand for LCD TVs, shipment volume of LCD TV panels will grow, pushing shipment growth of the Taiwanese large area TFT LCD panel industry.
More information can be found in the following MIC report. The Taiwanese Large Area TFT LCD Panel Industry, 2Q 2006
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