China to Become Largest Market for TFT-LCDs: MIC

In 2009 the major growth and application expansion for thin film transistor-liquid crystal display (TFT-LCD) panels have been driven by stronger-than-expected LCD TV demand, minor monitor-panel shipment growth, accelerated notebook PC replacement purchases, according to Market Intelligence Center (MIC) of the Institute for Information Industry.

At the Display Day forum on the topic of global information and communication technology (ICT) industry development, MIC forecasted that about 154 million monitors are expected to be shipped this year, down 3.2 percent year-on-year (YoY), and the annual volume is expected to continue to grow over next five years.

About 127 million LCD TVs are predicted to be shipped this year, a 24.8 percent YoY increase, MIC said, and there would be a growth trend in next five years. LCD TV shipments in 2010 and 2014 are forecasted to reach 152 million and 196 million units, respectively.

The center pointed out that prices for large-sized panels have fallen to a relative-low level with limited room for further drops, leading to most panel manufacturers` red operations except for major Korean players. MIC attributed the low panel prices mainly to the slow step toward large-sized applications in the overall market. For example, the center explained, 15.4-inch is still the mainstream size in notebook PCs, 19-inch is still the mainstay in monitor application (though the sales of 20 to 23-inch models continue to increase), and 32-inch models continue to command over 35 percent share in the global LCD TV market.

SH Chou, industry analyst of MIC, said that global panel makers would continue to expand their new capacities in 2010, but the keys to sharpening corporate competitiveness are higher capacity utilization and higher residual value for older generation production lines.

China would become the world`s largest single market for TFT-LCD panels, as well as being pivotal to the future`s global panel capacity utilization, he said. Without parts supply shortage, Chou pointed out, 2010 would be an over-supply year again for the TFT-LCD industry.

Source: CENS