Taiwan's FPD Production Value to Slightly Decline in Q3: IEK-ITIS

Taipei, Nov. 23, 2010 (CENS)--The flat panel display (FPD) industry (including FPD panels and key parts) in Taiwan turned out products valued at NT$431.9 billion (US$13.93 billion) in the third quarter of 2010, a 6.6% quarter-on-quarter (QoQ) decline, according to the IEK-ITIS (Industry & Technology Intelligence Services) in Taiwan.

FPDs made up NT$291.1 billion (US$9.39 billion) of the total production value, a 9.1% QoQ decline, while FPD parts and components contributed NT$140.8 billion (US$4.54 bilion), a QoQ decrease of 0.9% and YoY of 27.4%.

Large-sized (over 10 inches) thin film transistor-liquid crystal displays (TFT-LCDs) contributed NT$242.85 billion (US$7.8 billion) to the overall production value (down 12.6% QoQ but up 2.6% YoY), while small- and medium-sized TFT-LCDs NT$40.9 billion (US$1.3 billion), up 16% QoQ, down 9.0% YoY; TN/super twisted nematic (STN)-LCDs NT$5.25 billion (US$169.4 million), down 1.1% QoQ and down 16.4% YoY, and organic light-emit diode (OLED) NT$1.99 billion (US$64.2 million), down 1.0% QoQ and up 6.6% YoY.

Among FPD parts and components, color filters accounted for NT$30.78 billion (US$0.99 billion), down 8.0% QoQ and down 7.5% YoY, polarizers for NT$20.6 billion (US$665.2 million), up 18.6% QoQ, up 90.6 YoY, glass substrates NT$43.32 billion (US$1.4 billion), down 2.0%, up 23.7% YoY, and backlight modules NT$46.12 billion (US$1.49 billion), down 1.9% QoQ, up 47% YoY.

The IEK-ITIS says that the production value of large-sized TFT-LCD panels slid modestly from the previous quarter in the third quarter, a traditional high season, due mainly to worse-than-expected shipments of TV panels as well as the continued falling panel prices. Before the end of the second quarter, IEK says, all the panel prices had begun falling. Among all panel types, information technology (IT) panels (including those for notebook PC and monitor applications) maintained relatively-stable demand in the third quarter due to the back-to-school purchases, leading to minor price falls.

IEK-ITIS forecast that in the fourth quarter the overall FPD production value would grow for all the panel prices have declined to cash cost levels, while demand from Europe and the U.S. as well as China is expected to raise panel shipments.

The research project forecasts that the production value of large-sized TFT-LCD panels would grow to about NT$250.3 billion (US$8.07 billion), while that of small/medium-sized TFT-LCD about NT$46.64 billion (US$1.5 billion).