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Weak Market Demand, Korean Won Devaluation to Impact Taiwans Large Area LCD Panel Industry in 4Q 08

The Taiwanese large area TFT-LCD panel industry is expected to reach a shipment volume of 49.24 million units in the fourth quarter of 2008, declining sequentially and year-on-year. In the fourth quarter of 2008, although panel markers are aggressively cutting production to deal with the oversupply situation, major application product markets are being impacted by the economic downturn and their performance is expected to be below expectations. The production reductions of manufacturers are unable to produce the desired effect of controlling prices with production volume. Furthermore, the price declines of end-products as a result of panel price declines are not expected to be able to effectively stimulate market demand. Therefore, as end-market demand in the fourth quarter is expected to be limited, panel manufacturers will continue to cut production, and the scale of production reductions is expected to be larger than the third quarter.

Meanwhile in the short term, as the recent devaluation of the Korean Won is starting to show its effects, the competitiveness of the Taiwanese panel industry will be affected. This will have a negative effect on the Taiwanese industry’s shipments in the fourth quarter of 2008 and the first quarter of 2009.

Shipment value of the Taiwanese large area TFT-LCD panel industry reached US$6.99 billion in the third quarter of 2008, down 16.7% sequentially and down 19.8% year-on-year. ASP (Average Selling Price) of the industry fell to US$139.5. Regarding the reasons for the shipment value decline, although panel makers were aggressive in terms of lowering production to deal with inventories and declining downstream demand, supply/demand imbalances and inventory clearances were still major issues in the third quarter. Panel prices fell continually in July, August, and September, impacting ASP and leading to significant declines in overall shipment value.

Report on Taiwanese Large Area TFT LCD Panel Industry, 4Q 2008 ( http://www.bharatbook.com/Market-Research-Reports/Report-on-Taiwanese-Large-Area -TFT-LCD-Panel-Industry-4Q-2008.html ) includes shipment volume, value, ASP, shipment by maker, shipment by size, and shipment by application; provides product mix analyses including monitor, notebook PC, and LCD TV panel. The content of this report is based on primary data obtained through interviews with large area TFT-LCD panel manufacturers. The report finds that the Taiwanese large area TFT-LCD panel industry’s shipment volume declined in the third quarter of 2008, as some panel makers reduced production in reaction to inventory clearances and large-scale price declines. In the fourth quarter of 2008, shipment volume and value are expected to decline further.

For more information please visit: http://www.bharatbook.com/Market-Research/Telecommunications.html

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