LCD Manufacturers Face Price Crisis

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LCD manufacturers face price crisis

fter months of price cuts, manufacturers Aof large-size liquid-crystal displays 60,000 (LCDs) are under pressure to reduce panel LCD-TV panels prices further, following a major build-up of LCD-TV set inventory. A recent report from US business analyst iSuppli revealed that the second quarter of 2010 saw the manufacture of 52 40,000 million large (ten inches and above) LCD television panel shipments, but the sale of only 38.7 million LCD television sets. The resulting imbalance between supply 20,000 and demand is having a strong impact on the sector. “This gap is higher than anything seen in 2009. Over-supply persisted in shipments (thousands of units) Total the first two months of the third quarter 0 9 0 0 -0 -1 -1 as buyers cut orders in July and August,” Q1 Q1-09 Q2 Q3-09 Q4-09 Q2 says iSuppli analyst Sweta Dash. “LCD isuppli television brands are expected to lower prices more aggressively to reduce their An imbalance between supply and demand is causing prices to decline in the large-panel LCD industry. inventory levels, thus putting mounting pressure on panel suppliers to reduce and help to steady panel prices by the end of iPhone, iPad and other competing prices further.” the fourth quarter of 2010. products,” explains Jakhanwal. Dash points out that manufacturers of At the same time, rapidly rising sales of “Smart phone manufacturers are now monitor and notebook panels have been smart phones and tablet PCs are predicted adopting TFT LCDs that use in-plane reducing supply to mitigate excessive to see the global market for small- and switching technology, which supports inventory levels, and that panel prices are medium-size thin-film transistor (TFT) a wider viewing angle and better now stabilizing as a result. In contrast, LCDs expanding at its fastest pace for picture quality than a conventional high depreciation costs at relatively new three years. According to analyst Vinita LCD.” But the fast-paced market LCD television panel fabrication plants Jakhanwal, also from iSuppli, global expansion probably won’t last, predicts mean suppliers have been less willing to shipments of TFT LCD panels are set to rise Jakhanwal. “Growth in TFT LCD reduce production. by 28.1% in 2010, from 1.8 billion to 2.3 shipments will slow in 2011 and However, Dash predicts that the billion units. beyond as the expansion of smart potentially strong sales of LCD television “Sales of smart phones and phone and tablet markets cools to more sets in China could reduce inventory levels tablets are booming thanks to the normal levels.”

Smart phones speed AMOLED technology rose in popularity market. Led by former LG Electronics AMOLED take-up after its integration into mobile phones vice president Jong-Uk Bu, Nanosys manufactured by Samsung and HTC. In Korea will develop ‘architected materials’ The adoption of touch-screen technology the first quarter of 2010, the average screen for Asian electronics manufacturers, in the mobile phone industry is fuelling the size for an AMOLED display exceeded including high-performance LED demand for active-matrix organic light- three inches, which is larger than that backlights for displays and silicon emitting diode (AMOLED) displays, reports of competing TFT LCDs. Taiwan-based composite anode materials for use in US market research firm DisplaySearch. display manufacturers AUO and Chimei lithium–ion batteries. Earlier this year, AMOLED displays have been the only Innolux are scheduled to start mass- Nanosys unveiled QuantumRail, quantum- technology in the mobile phone display producing AMOLED displays in 2011. dot-based LED backlighting units that market to increase revenues every quarter Hsieh believes AMOLED technology improve LED backlit display colour this year, as both unit shipments and will now see increased year-on-year gamut and efficiency. Nanosys says that average prices have risen. “With an average growth, although TFT LCDs will still ship its quantum dot LED technology makes worldwide market penetration of mobile more units. it possible to deliver saturated red, green phones at 70%, manufacturers are eager and blue colours that exceed the NTSC to introduce new features such as touch- Nanosys unveils Korean facility 1953 guidelines for displays. This latest screens to ensure continued growth this announcement follows collaborations with year,” says Calvin Hsieh, research director at US-based quantum-dot and materials Korea-based electronics manufacturers DisplaySearch. “The success that AMOLED developer Nanosys has opened a new LG Innotek and Samsung Electronics displays are finding in high-end smart facility in Gyeonggi-do, Korea, to support to develop display products based on phones reflects these trends.” its recent expansion into the Asian quantum-dot crystals.