Market Intelligence Center (MIC), a Taiwan-based IT research and consultancy house, foresees that LCD TVs production will continue to grow quickly in 2003, as many companies’ fifth-generation LCD panel production facilities come online.
As Taiwanese manufacturers begin production of LCD TV panels and fifth-generation panel plants reach the mass production phase, LCD TV volume will increase and the price will start to come down.
The release of 30 inch and 40 inch LCD panels at international exhibitions suggests a trend that, beginning in 2003, there will be a major shift towards panels larger than 20 inches as 1,000 x 1,200 and 1,100 x 1,250 production line will be able to achieve more economical, more efficient cutting of those sizes.
For fifth-generation facilities, 1,000 x 1,200 substrates can be cut into six 20.1” panels or four 30” panels, while 1,100 x 1,250 substrates can be cut into nine 20.1” panels or four 30” panels. The larger size panels, which carry a significantly higher unit price, would generate more profit per substrate, assuming the same yield rate can be achieved as for other panel sizes.
Apart from the benefits inherent in cutting larger sized panels, the development of digital TV service will increase the demand for LCD TV. Digital TV broadcasts offer higher resolution, as well as better convergence and focus. In addition, LCD TVs are thinner and lighter than traditional CRT TVs.
“LCD TV will be less expensive than plasma TV as the cost of LCD panel production will be lower than that of plasma panels,” said Sean Wu, a Senior Industry Analyst with MIC. Wu pointed out that, unlike plasma panels, LCD panels are widely used in other devices such as notebook PCs, which helps reduce the production cost.
According to MIC’s projection, LCD TV will hold a 16.7% share of worldwide TV market in 2006, up from a 0.5% share in 2001. Over the same period, the global market share of CRT TVs will decline from 97.1% to 75.2%.