This report presents forecast of large-area TFT-LCD panel makers' capacity by production location and market demand by application over the period 4Q 2009 to 3Q 2011. Also included are supply and demand sufficiency ratio by panel area and unit. This report finds that as the supply of panels exceeded actual demand in the first quarter and the inventory levels of downstream vendors have been relatively high due to weak demand, it is expected that panel prices will continue to drop in the third quarter of 2010. Moreover, as the fourth quarter is traditionally an off-season for panel shipments and the prices of some panels have been lowered to near cash costs, it is expected that panel manufacturers will not increase production at the risk of losses. Consequently, it is estimated that panel supply by panel area will decrease sequentially in the fourth quarter. In terms of full-year panel supply, as various manufacturers began planning for the mass production of their new-generation lines in the second quarter, the overall production capacity will see year-on-year growth.