TFT-LCD panel prices used in notebook computers and flat screen TV sets are expected to keep falling, with some suppliers reportedly planning to trim their panel prices by US$ 10.

Reasons quoted are oversupply and present weak demand, keeping inventories high and likewise prices down, analysts say. Panel prices have steadily declined since mid-2002. The market price for a 15-inch panel, still US$ 265 in July, slid to US$ 235 in August, while plans to sell for US$ 200 to US$ 210 are rumored for October.

Samsung of Korea, the world's leading maker of TFT-LCD panels, recently announced that it would not lower its prices in October and that the price of the company's 15-inch panels would actually increase a bit to US$ 220.
Industry sources said that the decision of Taiwan makers for a pricing strategy different from Samsung resulted in part from their improved quality, which is now reported to be equal to that of Samsung.

To avoid the cutthroat price war in the 15 inch sector, makers are moving to bigger size TFT-LCD screens.

Lite-On, one of the leading Taiwan makers recently obtained Dell Computer orders for over 3.5 million units of 17 and 19-inch LCD monitors, valued at 15 billion Taiwan Dollars ( exchange rate approx. 34:1) according to local economic news services.
Lite-On also secured an OEM order from new Hewlett Packard.

Benq Corp. Is currently the largest local OEM producer of panels for Dell, but this status will soon be succeeded by Lite-On Technology due to the large OEM order.

Due to the continuous price war this summer, Dell and other international brands had delayed OEM procurements for a while until their inventory volumes decreased to bottom levels recently.

In related news, executives of AU Optronics, Taiwan's biggest supplier of the basic displays for TFT-LCD panel makers, told a press conference in his factory last week that he expected only two of those semiconductor manufacturers could survive in Taiwan due to rising economies of scale.