Apr. 04, 2001

Market insider's opinions in Taipei are divided over when TFT LCD prices will hit the bottom, and facing dropping prices of 15 and 17-inch LCD monitors.

Despite the fact that demands for 15-inch models are higher than for 17-inch models, Acer Display Technoloy and Unipac Optoelectronics, which just announced their merger, are confident about the 17-inch market and will concentrate on them in 2001-

ADT noted that in 2001, 15-inch types will still grab over 70% market share, and 17-inch monitors a relatively pale 15% TFT makers predict that although 15-inch A-class TFT LCD panels were priced at US$250 - 290 in March and 17-inch ones around US$500, after prices hit the bottom in the second quarter of this year, 15-inch ones will decline to US$ 250 and 17-inch lower than US$500.

After 15-inch prices will plunge to less than US$250, manufacturers' profitability will drop dramatically and they may even have no profits.

Display makers compete by slashing quotes and cutting profits

In related news, manufacturers say that with the continuous slide in the price of TFT-LCD displays, Taiwan display makers have been forced to slash their quotes for the contract manufacture of these products in order to undercut their rivals and survive the surrounding battle.

Contract manufacturing prices are expected to fall further with not rebound foreseeable at present.

So far, prices for 15-inch TFT LCD displays have fallen around 30%, mainly because of the sluggish TFT-LCD panel industry. The tactics od Korea's Samsung to grab short-term orders in Europe with a super low US$380 has disturbed the TFT-LCD market. Recently, even a quote as low as US$300 has appeared on the market.

"The situation shows how frustrated the TFT-LCD industry is", the Commercial Times, a Taipei daily newspaper with emphasis on economics, wrote.

In order to retain the interest of world-class PC powerhouses believed to be considering placing larger orders to Taiwan, local TFT-LCD display makers have asked their panel suppliers to cut them on the deals for a cheaper contract manufacturing service. However, although these deals may assure their survival, they do little to increase their income, and at present TFT-LCD display makers are living from hand to mouth, the paper said.

For instance, the export quote for a 15-inch TFT-LCD display is between US$300 and US$400 per unit. The Taiwan display makers will face thin profits, after subtracting outgoing expenses for a panel purchase of between US$250 and US$300 per unit, and on other needed costs.