- Although Taiwanese digital projector makers were forced to seek out new panel sources following Sony's decision to cut external panel supply, strong demand in European and North American markets pushed 27% sequential growth in Taiwanese projector shipment volume in the fourth quarter of 2003, reaching 132,000 units. With the dearth of LCD (Liquid Crystal Display) panel, some makers ceased projector production, further intensifying the degree of industry concentration.
Tight LCD panel supply caused an upswing the share of DLP (Digital Light Processing) projectors, which accounted for over 80% of Taiwanese projector industry shipments by the end of the fourth quarter. Compared to the third quarter, SVGA (Super Video Graphics Array) models did not continue to dramatically increase in the fourth quarter, and comprised 39% of total Taiwanese shipments.
With shortages of bulbs and panels, price declines on key components were curbed. Added that the share of lower priced SVGA models did not continue expanding in the fourth quarter, the decline in Taiwanese digital projector ASP (Average Selling Price) was slowed. Taiwanese digital projector shipment value climbed 19% sequentially to reach US$161 million.
In the first quarter of 2004, the makers that had been employing Sony's HTPS (High Temperature Poly-Silicon) panels have already switched to Epson panels or are adopting TI's DLP (Digital Light Processing) chips. Taiwanese projector makers are thus expected to ramp up mass production in the first quarter, which is expected to lead to a 16% sequential increase in Taiwanese digital projector industry volume. However, supply of key components such as bulbs and panels will be a major variable impacting the rate of growth.