Aug 11, 2000

As South Korean manufacturers assounced price cutstheir 14.1-inch TFT-LCDs by at least 10% in the fourth quarter, the international market price will drop to under US$400 for the first time, industry sources said Wednesday.

Mainly used in notebook PCs, 14.1-inch TFT-LCD panels have become the market's mainstay over the past few months. Some LCD monitors have also adopted this popular size to reduce overall selling prices, industry sources indicated.

It is expected that 14.1-inch TFT-LCDs will maintain their position in the next five years. This mainstay position is obvious as the supply of 14.1-inch TFT-LCD panel is now short supply.

In an attempt to take further market share, South Korean manufacturers will lower their price in the fourth quarter, with the initial reduction of about 5% in September.

The current average quotation for14.1-inch TFT-LCD panels is about US$440 per unit, so a 10% reduction will drop the price to under US$400, industry sources said.

Taiwane firms are expected to follow their South Korean counterparts if they lower their prices. South Korea plays a leading role in the manufacture of TFT-LCD products in the world.

Samsung lowered the price of its 17-inch TFT-LCD panels to below US$850 per unit in July, and this reduction will remain until the end of the year.

Taiwanese TFT-LCD manufacturers such as Chi Mei Electronics Corp., Acer Display Technology Inc., and Unipac Optoelectronics Corp. have switched their major cutting size to 14.1-inch TFT-LCD panels.