According to research of the Taipei-based Market Intelligence & Consulting Institute (MIC) conducted as part of the ITIS project, in 2009 global panel shipment volume is forecast to see slight growth due to relatively high growth rate of LCD (Liquid Crystal Display) TV panel shipment, although the growth of IT panels is expected to be limited. Meanwhile, impacted by competitors, Taiwanese large-area TFT-LCD (Thin Film Transistor-LCD) panel makers' shipment volume is forecast to drop about 9% to approximately 172.9 million units in the full-year 2009. Shipment value of Taiwanese large-area TFT-LCD panel makers is expected to reach approximately US$16.0 billion.
Taiwanese large-area TFT-LCD panel shipment volume reached 31.33 million units in the first quarter of 2009, declining 7.9% sequentially. Moreover, as the overall economy is still locked in a downturn, the first-quarter shipment volume saw 39.0% decline in comparison with the same quarter in 2008.
The decline of shipment volume in the first quarter could be ascribed to sluggish demand as well as insufficient utilization of panel makers' production capacity. Taiwanese panel makers had cut back on production for two consecutive quarters and were reluctant to boost capacity utilization due to lack of demand visibility in the near future. As a result, they were unable to supply sufficient panels to meet the demand of rush orders. Also, coping with the large-scale reduction of orders in the previous quarter, upstream component suppliers chose to lay off employees or shut down some production lines so as to control fixed costs. Consequently, the supply of upstream components was insufficient, leading to disturbance in the industry supply chain. Although branded vendors and system makers began increasing their orders with panel makers starting in February 2009, the production capacity of panel makers and supply of related components were unable to fulfill demand. Panel makers were therefore forced to clear their inventories to satisfy demand, even leading to shortages of panels of some sizes.
Regarding shipments by application, notebook PC panel shipment of Taiwanese makers in the first quarter dropped by approximately 36% sequentially in comparison with the previous quarter, while monitor panel shipment inched down about 4% sequentially in the first quarter. The relatively strong shipment performance of monitor panels can be attributed to the rural subsidy program for home appliances in China. Monitor panels of some sizes, such as 19-, 20-, and 22-inch widescreen, were used in LCD TV products instead, therefore contributing to monitor panel shipment volume. The large-scale decline of notebook PC panel shipment, on the other hand, was due to low-price competition from Korean panel makers as well as relatively high inventory levels reported by branded vendors.
More information can be found in the following MIC report: The Taiwanese Large Area TFT-LCD Panel Industry, 2Q 2009
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About MIC
Market Intelligence & Consulting Institute (MIC), 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
About ITIS
The Industry and Technology Intelligence Services (ITIS) project is managed by the Department of Industrial Technology of Taiwan's Ministry of Economic Affairs. As part of the project, research is conducted in a variety of fields, including the ICT sector. The project serves both the public and private sector