TFT-LCD Component, Materials Market Faces Twin Challenges: DisplaySearch
2009/03/31 | By Quincy LiangTaipei, March 31, 2009 (CENS)--DisplaySearch, a global-leading flat panel display (FPD) market-research firm recently pointed out two critical changes in the thin film transistor-liquid crystal display (TFT-LCD) material and component market in 2009: declining revenues and drastic structural changes.
For the first time, the TFT-LCD component and materials market would see a decline in revenues, the market-research firm said. In 2009, revenues are estimated to be US$49 billion, an 8% decline from 2008. In the second half of 2008, TFT-LCD makers reduced capacity utilization and shipments, which led to a reduction in the demand for materials and components. Meanwhile, panel makers are holding inventories at very low levels, which keeps materials and components makers' equipment utilization lower than panel makers. This lower utilization has pushed component prices down sharply, and it is expected to continue through 2009.
The most serious revenue declines are in photo spacers, printed circuit board (PCB) and other LCD module components, as well as the backlight unit (BLU). The PCB industry is facing a serious over-supply situation in 2009 due to weak demand from consumer electronics-driving PCB prices down rapidly.
Competition in materials and components is becoming more vigorous. DisplaySearch said that component manufacturers are making more efforts to reduce costs, such as improving yield rate, controlling losses in the manufacturing process, and making adjustments to the speed of production lines.
TFT LCD Materials and Components Revenues Unit: US$ billions | |||
| 2008 | 2009 | Y/Y | |
| PCB & Other Module Components | $8.5 | $6.6 | -22% |
| Inverter | $1.4 | $1.5 | 7% |
| Backlight | $14.8 | $12.6 | -15% |
| Driver IC | $4.5 | $4.3 | -4% |
| Other Cell Components | $0.8 | $0.5 | -38% |
| Liquid Crystal | $1.4 | $1.5 | 7% |
| Polarizer | $5.8 | $5.7 | -2% |
| Color Filter | $7.9 | $8.1 | 3% |
| Chemical & Indirect Materials | $2.3 | $2.1 | -9% |
| Sputtering Target | $0.8 | $0.9 | 13% |
| Glass | $4.8 | $4.8 | 0% |
| Total | $53.0 | $48.6 | -8% |
| Source: DisplaySearch, March 2009. | |||