Taiwanese small- and medium-sized TFT-LCD (Thin Film Transistor Liquid Crystal Display) panel shipment volume in the third quarter of 2008 is estimated at 182.35 million units, growing 29.6% sequentially and 25.8% year-on-year. Shipment value in the third quarter reached approximately US$1.26 billion, growing 13.6% sequentially.

According to MIC Senior Industry Analyst Pei-Fen Hsieh, "market demand for consumer electronics was relatively low in the first half of 2008 due to a weak global economy. In order to cope with the sluggish market demand, many TFT-LCD panel makers cut back on production to maintain balance between supply and demand. While seeking to effectively clear inventories, the panel makers also hoped that the production cutback would guard against price drops brought about by oversupply."

"In the third quarter, market demand experienced a slight upturn. Branded clients released orders and there was significant cell panel demand from China", said Ms. Hsieh. "Moreover, some TFT-LCD panel makers also cut prices to stimulate procurement."

Looking at Taiwanese small- and medium-sized TFT-LCD panel shipment in the third quarter by application product, only the mobile phone panel shipment performance was in line with the peak-season trend; it even surpassed the growth of global mobile phone market. Such strong shipment performance mainly arose from the increase in orders that major international mobile phone brands placed with Taiwanese panel makers. Moreover, in preparation for the holiday peak-season demand in China, many Chinese module makers began to stock up on cell panels. However, facing the global economic doldrums, Taiwanese panel makers remain conservative towards market demand in the fourth quarter of 2008. Although brand-name clients have been a relatively stable source of orders for Taiwanese makers, market demand in China, both in the domestic and export sectors, is expected to be unstable in the fourth quarter.

Regarding seven-inch and larger TFT-LCD panels, most makers have scaled down shipments in this segment due to high inventory levels in the first half of 2008. The continuing weak economic situation in the two major digital photo frame markets North America and Europe is also expected to have adverse factors for the fourth quarter of 2008, and Taiwanese panel makers are expected to adjust their capacity allocations accordingly. Meanwhile, Taiwanese branded notebook PC vendors' new netbook shipments are expected to maintain stable growth. Therefore, it is projected that Taiwanese panel makers' netbook panel shipment volume will see further growth in the fourth quarter of 2008.

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