Taiwan, South Korea and Japan are now most active developing flat panel display products in the world, and boast their own advantages. Japan joined the line earlier than Taiwan and South Korea and therefore enjoys a well-established industrial structure; South Korea posts the largest industrial scale and fastest technical development; and Taiwan boasts abundant capital funds and strong support from downstream industries. But products turned out by Taiwan and South Korea are more competitive in price. Mainland China, however, has been actively developing its flat panel display industry by acquiring technologies from South Korea and cooperating with Japanese makers to build joint-venture plants. It is expected that mainland China will become a strong competitor to Taiwan and South Korea in the field.

Taiwanese makers of flat panel display products are mostly operating on a smaller scale than their S. Korean counterparts. They are forced to engage in price-cutting competition amid sluggish economic performance, which, in turn, is detrimental to the development of the industry. Although Taiwan is expected to become the world's largest supplier of TFT-LCD panels in 2005, local makers will still face strong competition from their counterparts in S. Korea and mainland China in the future. To counter the competition, the resources of the government and makers should be integrated in order for makers to boost the operating scale and upgrade product competitiveness.