According to MIC (Market Intelligence Center), an ICT industry research institute based in Taipei, strong market growth for notebook PC panels strained panel supply in the second quarter of 2007 and led to a supply shortage in the third quarter. Although panel makers have gradually shifted 5G capacities to production for 14.1" and 14.1"W panels, the third quarter of 2007 still saw a supply shortage of approximately 7.1%, mainly for 15.4"W and 14.1"W models, squeezed by the strong demand for LCD monitor panels. Supply-and-demand is expected to resume a healthy level in the fourth quarter of 2007, though.

Forecasts for notebook PC panel demand in 2008 have been revised upward by 15%, further straining panel supply. The market is expected to suffer 6.6% supply shortage in the second quarter of 2008, which will be expanded to 23.3% in the third quarter and 12.4% in the fourth quarter. Aggregate capacities of panel makers, as currently planned, are estimated to fail to meet market demands.

Forecast for LCD monitor panel demand in 2008 has been revised upward by 13%. Downstream clients are expected to stock up similar to 2007, resulting in peak demand in the second half of the second quarter and the third quarter of 2008, as well as weaker demand in the fourth quarter. Supply shortage is forecasted to hit 3% in the second quarter and 11% in the third quarter.

LCD TV panel supply and demand met market expectations and saw 2% supply shortage in the third quarter of 2007, mainly for mainstream 32" and 37" panels. Nevertheless, a 22% oversupply is projected to emerge in the fourth quarter, owing to the inaugurations of next-generation production lines.

Forecasts for LCD TV panel demand for 2008 have been revised downward by 2%. Except for the third quarter, which is forecasted to see a supply shortage of 12%, other quarters of 2008 are projected to feature sufficient supply.