June 4, 004

Taiwan's TFT-LCD industry will reach a production value of US$ 15 billion by the year, which will surpass that of South Korea and help the island to become the world's largest TFT-LCD manufacturing bases, according to market analysts.
This figure will also surpass that of the semiconductor industry, making TFT-LCD the island's largest manufacturing sector.

In related news, Taiwan climbs to 70% of worldwide LCD monitor supply, while the quite new field of LCD TV growth rate will hit a higher gear.

Driven by CRT monitor replacement in North American and West European markets, as well as steadily increasing bundle rates by PC vendors, LCD monitors are expected to account for over 50% of global monitor supply in the second quarter of 2004.

Taiwan's LCD monitor share of global supply is forecasted to break 70% in 2004 due to a number of factors. The Taiwan LCD monitor industry chain is growing increasingly mature, and in-house production of key components is steadily climbing.
As Samsungs's branded business is deepening concerns among PC vendor customers, and LG's cooperation with Sony has recently undergone chance to to delivery problems, the outsourcing strategies of international vendors are increasingly favoring Taiwan makers over Korean players, Market Intelligence Center of Taiwan's Institute for Information industry said.

In the Taiwan LCD TV industry, panel prices continue to fall and orders are lowing in from international consumer electronics venders and PC venders moving into the consumer electronics sector. In the first quarter of 2004 alone,Taiwanese LCD TV shipment volume hit a new high of 400,000 units. Close to the 410,000 shipment scale seen throughout all of 2003, this abrupt growth spurt demonstrates that the Taiwan LCD TV Industry is now entering a stage of rapid growth.

However, given the later entry of Taiwan into this business as compared to Japan and Korea, Taiwan LCD TV makers are behind in image processing technology and face high customs duty in various regional markets, Most production is also highly concentrated in Taiwan and China. Added that most Taiwanese LCD TV panel supply is 30" and smaller, aggressive ordering by TV channel players has brought about a varied mix for Taiwan LCD TV shipments as these players look to diversify product lines. At present, the top eight global LCD TV brands hold over 80% market share, leaving Taiwan makers with only orders for 20" and smaller, where demands for image quality are less stringent and customs duties can be avoided. Once capacity ramps up on 5G and 6G lines in 2004, the share of 20" LCD is expected to slide from roughly 80% in 2003 to about 50%. Room for price erosion on larger LCD TVs, meanwhile, presents both opportunities and challenges for Taiwan makers.