Taiwan to become world's No. 1 TFT-LCD panel maker this year: TRI

Taipei, Jan. 12, 2004 (CENS)--Taiwan's Topology Research Institute (TRI) recently forecasted that the island would account for 43.58% of the global supply of thin film transistor-liquid crystal display (TFT-LCD) panels this year, outstripping South Korea's 42.87% to become the No. 1 supplier of such panels in the world.

According to TRI, the global demand and supply of TFT-LCD panels will reach a balance this year. The panel prices, after rising continuously last year, are expected to fall in the second half this year at a 3% to 5% rate per month, the institute said.

TRI said after the price of each 15-inch panel hit a low of US$170 in the first quarter last year, it has been gradually rising and is expected to climb to about US$220 in the first quarter this year. The institute predicted the price to keep rising to about US$227 in the second quarter and then slide to about US$210 and US$200 in the third quarter and the fourth, respectively, this year.

The price for a 17-inch panel, TRI said, is expected to stand at US$290 in the first quarter this year, rise to US$300 in the second, and fall to about US$270 in the third and US$260 in the fourth quarter this year.

The institute added that the 17-inch LCD monitors would become the market mainstay this year, while there are relatively higher margins for 19-inch panel products.

TRI pointed out that the supply shortage of some parts would affect the smooth production expansion of TFT-LCD panels this year. The institute predicted that supply shortage of color filters would peak in the first quarter this year, while the glass substrate would also face excessive demand in the second half.

There still exists room for price hikes for color filters in the first half this year, TRI said, but the filter prices are expected to stay at a stable level in the second half. The prices for glass substrates, however, TRI said, would continue growing to a similar high level seen in 2002.

The institute also said that the global shipment of such product would hit about 10 million units, in which Taiwan makers would account for about 2.4 million units, due to the aggressive market development by international home appliance and information technology (IT) brands.

Amid fierce competition, TRI added, the profit margins for LCD TVs are expected to decrease by at least 5% while the prices would fall 25% this year.

LCD TVs are expected to gradually replace traditional cathode-ray tube (CRT) counterparts with their improved functions and increasingly friendly prices this year, TRI said.

The institute forecasted that the 2004 global shipment volume of LCD TVs would reach about 40 million units, in which Taiwan companies would account for 12.5 million units.

The continuous entry of big international IT brands, such as Hewlett-Packard Co. (HP) and Dell etc., into the LCD TV market would further reduce the margins for makers and distributors. The institute estimated that the profit margins would decrease to about 15% to 20% from about 25% currently.