Sept 10, 2001

Taiwan could become to world's biggest supplier of thin film transistor liquid crystal displays (TFT-LCDs) at the end of 2001 if new entrants continue to join the line and incumbents enhanced production efficiency, the Industrial Development Bureau (IDB) of the Ministry of Economic Affairs reported.

Global LCD production is about equally divided among Japan, South Korea, and Taiwan, the IDB said. With the price of 15-inch LCD panels plunging to about US$500 last year, demand for such products has been growing at a breakneck pace. Global demand for the panels has shot up even faster since the first quarter this year, when unit prices dropped to only about US$339, the bureau said. Greater demand has in turn helped producers achieve economic scale and cut prices, creating a vicious cycle.

According to TSR (Technique System Research Co.) of Japan, a display market analyst, global supply of and demand for LCD panels approached par in the second quarter this year. Following these statistics, the IDB predicted that the demand for the panels would outpace supply in or after the fourth quarter t his year, driving big makers in Japan, South Korea and Taiwan to expand output.

Taiwan accounted for 23% of the global LCD market last year, but TSR predicts that the island's share will top 30% by the end of 20001. The Japanese market analyst also pointed out that the average production capacity and efficiency of Taiwan LCD factories are expected to outpaced those of Japan in the third quarter.

Though Taiwan and Korea have similar LCD production capacities, the industry in Taiwan has a competitive edge due to the steady stream of demand generated from the island's extensive computer, information appliance and telecommunication industries.

The leading makers in the field

AU Optronics sold 354,000 units of large-sized TFT-LCD panels in August alone, making it the largest maker in the line in Taiwan, according to industry sources. AU Optronics is a company merged from Acer Display Technology Inc. and Unipac Optoelectronics Corp., two major TFT-LCD makers on the island. Both companies formally merged on Sept. 1.

Chi Mei Electronics Corp. sold about 16,000 units in July and climbed 25% to hit 200,000 units in August.

Chunghwa Picture Tubes Ltd., by installing the latest fourth generation production facilities, sold about 195,000 units in August, up 39% from the 140,000 of July.

HannStar Display Inc. sales of 15-inch TFT-LCD panels declined of 150,000 units in August from 220,000 units in July.

Overall, sales of large-size FTF-LCD panels from Taiwan's major makers totaled about 929,000 units in August.