Slowed by a shortage of projection panel, Taiwanese projector industry shipment volume sequentially grew 11% in the third quarter of 2003 to reach approximately 102,000 units. Continued demand for low priced projectors from the consumer segment drove shipments of SVGA (Super Video Graphics Array) models, maintaining a ratio of 6:4 between XGA (Extended Graphics Array) and SVGA shipments.
Shipment value grew 4% sequentially in the third quarter of 2003 to total US$137 million. The upswing in SVGA models priced US$1,000 and lower put downward pressure on ASP (Average Selling Price); however, the panel shortage limited price declines and slowed the drop in ASP.
In the fourth quarter of 2003 Taiwanese projector shipment volume is expected to sequentially rise 15% due to an upsurge in US and European demand. However, Sony has gradually cut down on HTPS (High Temperature Poly-Silicon) panel sales in the third quarter of 2003, and is anticipated to totally cease outward supply by the second quarter of 2004, reserving panels for adoption in the company's branded projectors. Given that Sony comprises approximately 30% of worldwide projector panel market share, this gap in supply will have a huge impact on the global and Taiwanese projector industries.
At present Sony HTPS panels account for 15% of Taiwanese shipment volume, and as Sony progressively cuts sales, Taiwanese makers will need to seek supply from Epson. However, Epson's capacity is limited, and the company will likely only provide panels to makers with which it already cooperates; Taiwanese players will thus need to decide whether to invest in DLP (Digital Light Processing) technology. In light of the short panel supply, securing sufficient panel to maintain shipment volume growth will be greatest challenge faced by the Taiwanese projector industry.