Major TFT-LCD Makers' Performance Continue to Slide

Taipei, Dec. 15, 2008 (CENS)--Top-two thin film transistor-liquid crystal display (TFT-LCD) panel manufacturers in Taiwan recently publicized operation results for November, both of show sharp declines from the previous month.

AU Optronics Corp. (AUO), the No. 1 player on the island, reported consolidate revenue of NT$17.75 billion (US$538 million at US$1: NT$33) for November, down 34.9% from October and the lowest monthly record since July 2005.

Chi Mei Optoelectronics Corp. (CMO), the second-largest panel maker in Taiwan, had revenue of NT$12.2 billion (US$369.7 million) in last month, a major sequential drop of 41.3%. Industry insiders said that CMO is facing a challenge to protect its December revenue from falling under NT$10 billion (US$303.03 million).

Institutional investors, however, estimated that both AUO and CMO's operations in December would continue to decline by 15% to 20%.

AUO said that it shipped 4.5 million large-sized panels in November, down 29.2% from previous month; and 14.85 million small/medium-sized panels, down 34.5%. CMO delivered 3.36 million large-sized panels, down 31.6% sequentially, and 5.05 million small/medium-sized products, a stiff monthly drop of 60.5%.

Industry sources said that global economic woes have battered panel demand from system makers. Panel makers would have to further cut prices to clear inventories, the sources explained.

January 2009, a traditional off month, will see the two leading panel suppliers' revenue to drop even lower than that in December 2008, with signs for a rebound in suppliers' revenues and shipments in the short term, they said.

AUO's Q4 Operation Forecast
	Revised	Pre-revised
Large-sized panel shipments	Down 30% from Q3	Down 5% -9% from Q3
Small/Medium-sized panel shipments	Down 25% from Q3	Down 15% from Q3
Average Selling Prices (ASP)	Down 25% from Q3	Down 12%-13% from Q3
Equipment Utilization	60%	70%
Source: AUO.