May. 28, 2001

Following the trend away from PC monitors with cathode ray tubes (CRT), sales of Taiwan made LCD monitors are expected to surpass the five million unit mark for the first time in 2001, compared with only 2,7 million recorded in 2000, according to industry sources.

In 2001, the world's LCD market expects to absorb sales of about 12 million units, up from six million in 2000. Taiwan supplied about 45% of the world market last year.

It is expected that sales of LCD monitors will enjoy a 100% growth rate in 2002, with the compound growth rate reaching 40% this year. In contrast, sales of CRT monitors will continue declining in the future, with the compound growth rate reaching only 3% a year.

Beginning in 1999, Taiwan's major notebook PC manufacturers such as Quanta, Twinhead, and Compal started making LCD monitors.

Taiwan's specialized LCD monitor makers have all enjoyed stable sales in recent months. However, the profit from LCD monitors is presently limited, as over 80% of the production costs come from LCD panels. Accordingly, profit margins have been relatively low at between 8% and 10%, according to industry sources.