30 July 03

"Japan firms losing LCD market war to Korean, Taiwanese rivals" Nikkei Electronics Asia pointed out in a headline story, analysing that, as the competition in LCD market intensifies further among the top East Asian firms, Japanese manufacturers - which combined had commanded the biggest global market share until just two years ago - are seeing their competitive edge diminishing.

Korean and Taiwan electronics manufacturers boasting ample funds have scrambled to introduce the latest facilities and successfully expanded their market share of LCD displays used in personal computers. In contrast, Japanese firms are seeing their market shares shrink, and some of them have started forging alliances with their foreign rivals in order to offset their higher domestic production costs and as a way to survive the competition.

"World LCD TV market to about 10 million units in 2004" According to a survey conducted by Taiwan's HannStar Display Inc., the world's LCD TV market is expected to absorb a total of 10 million units by 2004, a figure higher than eight million units predicted by more conservative market sources.

HannStar vice president Chou Ding-hui said that LCD TVS would eventually replace traditioal CRT TVs, with a breathrough of up to 10 millio units for the first time next year.

Meanwhilee, renowned survey institute Display Search analyses that home appliance and information appliance makers have ventured into the research and development of LCD TVs recently, forecasting that this would help boost sales to hit 10 million units in the global market by 2004.

2003 marks the first year of LCD Tvs with 30- and 32-inch family-use models representing the mainstay in the market. This year the market is expectedto absorb 3.7 million units.

Sony, Matsushita, LG Philips, Samsung and newcomer Teco of Taiwan have started the manufacture of their own LCD TVs. International system makers ssuch as HP,Dell, and Gateway have followed suit recently.

In Taiwan the Industrial Technology Information Service (IT IS), division of the government-founded Industrial Technology Research Institute (ITRI) said that 20-inch LCD TVs and aboove are the mainstay in the market, to represent ofver 70% in the future. According to the institutes estimated, the demand will reach 4.95 million in 2003 and grow to 9,59 million next year.

"One Europe, many monitor markets" says Camberley ( GB) based Meko DisplayCast pointing out that there are differences across the different regions in Europe when it comes to monitor sales, but opines that Europe as a whole continues to adopt LCD monitors at an increasingly rapid rate. Data being collected for Q2 2003, makes it clear that the percentage of sales that are LCD-based for the period will again be at record levels. The German speaking countries of Europe had the highest LCD penetration rate at 60 percent in Q1 2003.

Meko is a specialist market research consultancy and publisher providing advice and data for the European displays market. Information about its range of reports and a newsletter is available by calling www. meko.co.uk

"TFT-LCD panel makers to invest in new generation plants," are the dominating headlines of Taiwan' economic newspapers.Encouraged by the fast-growing demand for TFT-LCD televisions, panel makers in Taiwan have announced plans of investment projects to launch sixth- aund seventh-generation plants. Among the local firms AU Optronics Corp., Quanta Display Corp., Chi Mei Optoelectronics , HannStar Display co., and Chunghwa Picture Tubes. An insider analyst said that total investments in the new plants will total the equivalent of US$5,74 billion. AU Optronics alone recently announced it would invest US$ 2.86 billion to build a 6th and 7th generation TFT-LCD panel plant in the Taichung Science-based Industrial Park, while Quanta said it will invest US$1.43 billion in a new plant .

"32-inch LCD TV, PDP TV price war looming" is another one of those headlines in which internationa buyers might be interested. This price war in the 32-inch sector is expected to break outfor the first time in 2004,executives at DisplayResearch 's Taiwan branch said this week. The price of LCS TVs will be set about US$2,021 per unit, compared with US$ 2,091 per unit for PDP TVs in 2004, according to the institute's latest research. The price of 32-inch PDP TVs now stands atUS$2,631 per unit, a figure lower than that for the same size of LCD TVs, which sells for US$3,214 per unit in the market.

"TFT-LCD panel component makers to carry out expansions" are news stressing that suppliers in the field of panel components, including glass substrates, color filters, and polarizers will soon carry out their own expansions to meet demands.
Taiwan's biggest advantage in making it one of the world's biggest ICT manufacturing countries is the self-sufficiency of the industrie through thousands of upstream and downstream suppliers in close proximity.

For example, corning, the world's largest glass substrate maker has decided to invest US$1,8 billion for the expansion of its glass furnaces in the Tainan Science-based Industrial Park in Southern Taiwan, while Japan-based Asahi will invest 13 billion Yen for the establishment of a new glass substrate furnace in Yulin County, also in Southern Taiwan and Picvue also setting up new glass furnaces in Hsinhcu, Middle Taiwan.

"40-inch potential developing". Perceiving market potentials for 40-inch and up LCD TVs, Chunghwa Picture Tubes ltd. has decided to invest 7 billion Taiwan Dollars to set up a second PDP production line in Yangmai, Taoyuan county. The new production line will mainly produce PDP panels for 42-, 50-, and 60-inch LCD TVs. The company already owns a 46-inch PDP production line wihich turns out only 3,500 units per month for the moment but will deliver 5,000 units in September, reaching break-even point at that time, and reaching its peak capacity with 7,000 units per month.