According to MIC (Market Intelligence Center), an ICT industry research institute based in Taipei, large-size TFT-LCD (Thin Film Transistor Liquid Crystal Display) panel supply for notebook PCs is expected to reach 131 million units in 2008. In the first and second quarters of 2008, large-size TFT-LCD panels for notebook PCs will be in oversupply, mainly due to the switch of the production of 12.1", 13.3", and 14.1" LCD panels to display panel makers' 5G production lines, leading to a substantial increase in capacities. With increasing consumer market demand, supply of large-size TFT-LCD panels for notebook PCs will slightly strain in the third and fourth quarters, especially for 12.1"W and 15.4"W mainstream panels.

Consequently, a 6.8% shortage is projected to emerge in the third quarter of 2008, growing to 7.4% in the fourth quarter. With the peak season, it is anticipated that panel supply will be challenged to meet market demand. However, according to MIC Industry Analyst Linda Lin, the situation is expected to be alleviated in 2009 as makers are switching notebook PC panel production to their 5G production lines.

Regarding large-size TFT-LCD panels for LCD monitors, Ms. Lin stated that the shift of the production of these panels to 6G production lines is expected to help panel supply, leading to small-scale oversupply in 2008. Supply of large-size TFT-LCD panels for LCD monitors is forecasted to reach 192 million units in 2008, with LCD monitor demand seeing 174 million units. Overall, the market is expected to see oversupply, mainly due to increased outputs of 17"W, 19"W, and 22"W mainstream panels. In the third quarter of 2008, however, the market is expected to witness a small supply shortage, as 15.4"W and 26"W panels can also be used for notebook PC and LCD TVs, squeezing production of LCD monitor panels.

16:9 widescreen LCD monitor panels are slated for mass production in the second quarter of 2008. 18.5"W, 21.5"W, and 23.5"W will be mainstream models. With production efficiency increasing, panel makers plan to focus on 16:9 panels.

Large-size TFT-LCD panel supply for LCD TVs supply is expected to reach 119 million units in 2008, with demand seeing 103 million units, representing oversupply. Panel supply, in terms of panel sizes, is unlikely to witness the shortage of 32"W and 37"W mainstream panels as happened in 2007. However, panel supply for 42"W and larger models will be somewhat strained in the third quarter of 2008 as market demand is expected to increase rapidly, according to Ms. Lin. Overall, supply of large-size TFT-LCD panels for LCD TVs is expected to exceed demand in 2008.

The inauguration of next-generation production lines, such as 8G, 8.5G, and 10G, in 2009 will aggravate the oversupply of LCD TV panels, driving down panel prices and resulting in higher market demand for LCD TVs.

More information can be found in the following MIC report:  Worldwide Large Area TFT LCD Panel Supply and Demand Forecast, 2Q 2008 - 2Q 2009

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Market Intelligence Center, based in Taipei, Taiwan, was founded in 1987. MIC is Taiwan's premier IT industry research and consulting firm providing intelligence, in-depth analysis, and strategic consulting services on global IT product and technology trends, focusing on markets and industries in Asia-Pacific. MIC is part of the Institute for Information Industry. https://mic.iii.org.tw/english