Taipei, Thursday, August 17, 2017 08:07 (GMT+8)
thunderstorms
Taipei
34°C
Taiwan large-size LCD panels – 4Q 2008
Tony Huang, DIGITIMES Research; Yvonne Yu, DIGITIMES [Monday 23 March 2009]
Taiwan shipped 33.2 million large-size LCD panels in the fourth quarter of 2008, down 33.7% sequentially and down 37.0% from the same period one year earlier.

Introduction

- Taiwan shipped 33.2 million large-size LCD panels in the fourth quarter of 2008, down 33.7% sequentially and down 37.0% from the same period one year earlier.

- Large-size LCD shipments will drop further in the first quarter of 2009 with a 5.6% sequential decline and a 38.7% on-year decline.

- Taiwan shipped 188.6 million large-size LCD panels in 2008, representing growth of 1.2% from 2007, and Taiwan's share of the global market dropped to 43.1%.

NOTE: Unless otherwise indicated, all figures and tables in this report refer to output from Taiwan makers

Chart 1: Large-size TFT LCD shipments, 3Q07-1Q09 (k units)

Source: Digitimes Research, January 2009

Industry watch

- In the first three quarters of 2008, Taiwan makers were still leading Korean rivals in large-size panel shipments. But Taiwan's market share plunged to 36.3% in the fourth quarter as orders chilled quickly amid the worsening economy, but Korea's share rose to 50.9%. The depreciating Korean currency gave the Korean makers a competitive edge in pricing. At the same time Taiwan makers, which had been heavily depending on orders from such big TV brands as Samsung, LGE, Sony, saw these clients suspending their orders and rely more on in-house production.

- Taiwan's LCD TV panel shipments were strong in the first three quarters. CMO even climbed to the top notch in worldwide TV panel shipments in the third quarter. But in the fourth quarter, Taiwan's TV panel shipments declined almost 40% sequentially, compared to Korea's drop of only 5.8% for the period. For the full year of 2008, Taiwan's TV panel shipments grew only 7.8% to 45.65 million units from 42.32 million units in 2007.

- For other applications, their 2008 shipments were even worse, with monitor and notebook panel shipments both seeing on-year declines. But the share of notebook panels in overall large-size shipments increased to 24.2% in 2008, as average notebook price dropped below US$1,000, accelerating the replacement of desktop PCs.

- In 2009, one major issue worldwide panel makers of large-size panels have to tackle is the slower growth in demand than in capacity. Global large-size panel production capacity is estimated to increase 11% in 2009, an estimation that has already taken into consideration of makers' moves to suspend new plant construction or delaying capacity expansion for their 5G, 7.5G, 8.5G or 10G lines. However, demand is estimated to increase by only 6% in 2009.

- While Taiwan makers AUO, CMO, and CPT are suspending capacity or delaying equipment installation at new plants in 2009, Korean makers will be expanding faster. Samsung plans to expand its 7G and 8G production lines, and LG Display (LGD) its 6G, 7.5G and 8.5G in 2009.

- Taiwan's capacity is estimated to increase only by 1.5%, while Korean capacity is estimated to increase by 23% this year. As a result, Taiwan's share of worldwide large-size panel capacity will shrink in 2009. Korean rivals' capacity share will increase to 51% in the fourth quarter of 2009.

Shipment breakdown

Breakdown by application

Chart 2: Shipments by application, 3Q07- 1Q09 (k units)

Source: Digitimes Research, January 2009

- Shipments dropped across all application categories in the fourth quarter, with the TV segment seeing the biggest decrease of 40%, followed by the monitor segment's 33% and the notebook segment's 30%.

- In the first quarter, shipments for all categories will continue dropping. But the monitor segment will see the slightest decline of 3%, followed by the notebook segment's 6% and the TV segment's 9%. With suppliers planning to raise monitor panel prices, clients are likely to place orders ahead of the price hikes.

Chart 3: Shipment proportion by application, 2Q07-1Q09

Source: Digitimes Research, January 2009

- Monitor applications remained the top segment in the fourth quarter. But the share of shipments, despite a slight rise, was below 50% for the second quarter in a row.

- During the fourth quarter monitor panel shipments from Chunghwa Picture Tubes (CPT), HannStar Display, and Innolux Display dropped 32%, 52%, and 40% respectively compared to the third quarter.

- In the first quarter, monitor panels' share may rise back above 50% because of the segment's slightest shipment drop among all panel categories.

Application by size: Monitor panels

Chart 4: Monitor panel shipment proportion by size, 3Q07- 4Q08

Source: Digitimes Research, January 2009

- Monitors of new sizes (15.6-inch widescreen, 18.5-inch widescreen, and 21.x-inch) had yet to be able to drive growth for the overall market in the four quarter.

- Besides the 22-inch widescreen, the two new sizes, 21.5-inch widescreen and 21.6-inch widescreen, helped drive up the proportion of the 20-inch-and-larger segment by 5.5 percentage points.

Application by size: Notebook panels

Chart 5: Notebook panel shipment proportion by size, 4Q07- 4Q08

Source: Digitimes Research, January 2009

- The 15.4-inch widescreen remained the mainstream sharing 49.9% of the total notebook panel shipments in the fourth quarter.

Application by size: TV panels

Chart 6: TV panel shipment proportion by size, 4Q07- 1Q09

Source: Digitimes Research, January 2009

- Shipments to the 30-39-inch and 40-inch-and-larger segments dropped as Samsung Electronics and LG Electronics (LGE) reduced orders for 32-inch, 40-inch and 42-inch panels and relied more on in-house production for them instead.

- AU Optronics (AUO) and Chi Mei Optoelectronics (CMO) saw their 32-inch panel shipments lag behind Sharp, who used its 8G production lines to process 32-inch panels in the fourth quarter.

- The shipment proportions for 22-inch and 26-inch panels were 7.8% and 26.6% respectively, while the proportion of 46-inch panels dropped to 2.8%.

- The shipment proportions in the first quarter 2009 will not have significant changes.

Outlook till 2011

Chart 7: Taiwan large-size panel shipments and global market share, 2007-2011

Source: Digitimes Research, January 2009

- Taiwan panel makers' capacity increase will lag global average, as they put on hold their expansion plans amid the ongoing economic downturn, which is hitting Taiwan panel makers harder than their Korean rivals. Shipments for 2008 are estimated to have grown only slightly, and shipments for 2009 will decline, as the global economy is unlikely to improve much.

- Taiwan panel makers will see their global market share drop in 2009 as closer cooperation between their foreign competitors and their first-tier TV clients will weaken the Taiwan makers' relationship with those clients.

Realtime news
  • TSEC to start production at new PV module plant in 1Q18

    Green energy | 10h 29min ago

  • ASE output hit by power outage

    Bits + chips | 10h 42min ago

  • HTC to offer Vive VR training to UPS

    IT + CE | 10h 44min ago

  • Getac shipping GVS products to US market

    Before Going to Press | 11h 30min ago

  • HMD Global to unveil Nokia 8

    Before Going to Press | 11h 34min ago

  • Nvidia overtakes MediaTek as second largest IC design company

    Before Going to Press | 11h 37min ago

  • Brisk graphics card demand to buoy inductor firms in 3Q17

    Before Going to Press | 11h 40min ago

  • Global notebook shipments rise in 2Q17, says firm

    Before Going to Press | 11h 41min ago

  • UPS to use HTC Vive for VR training

    Before Going to Press | 11h 42min ago

  • Egistec to post brisk 3Q17 revenues

    Before Going to Press | 11h 43min ago

  • ASE production hit by power outage

    Before Going to Press | 11h 44min ago

  • Apple expected to launch Apple Watch 3 by year end

    Before Going to Press | 11h 47min ago

Pause
 | 
View more

Taiwan LCD TVs – 2Q 2017

TAIWAN DISPLAY SYSTEM | Aug 14, 11:13

Taiwan TV makers' shipments to some of their China-based clients were weakened by rising LCD panel prices in the second quarter of 2017, during which shipments to China's financially-troubled LeEco had mostly stopped.

Taiwan large-size LCD panels – 2Q 2017

TAIWAN LCD PANEL | Aug 10, 15:30

The large-size LCD panel market has reached maturity, and no significant growths are expected for Taiwan's makers in 2017.

Global tablet market – 2Q 2017

GLOBAL TABLET | Aug 9, 15:31

According to Digitimes Research statistics, global tablet shipments in the second quarter of 2017 totaled 33.39 million units, down 10.3% from the level of the previous quarter as white-box vendors reduced their shipments due to rising memory costs and the market...

China AMOLED panel capacity expansion forecast, 2016-2020

RESEARCH EXTRAS | Jun 8, 15:37

This Digitimes Research Special Report examines the China AMOLED industry, focusing on the expansion capacity of the makers, the current implementation plans of major smartphone vendors in the market and the technological hurdles faced by China's makers.

Taiwan server shipment forecast and industry analysis, 2017

TAIWAN MOBILE DEVICE | May 31, 10:20

According to surveys and analyses conducted by Digitimes Research, revenues generated from sales of server motherboards, servers, storage systems and related network system equipment by Taiwan-based vendors rose 4.8% on year to reach NT$555.8 billion (US$18.79...

Global notebook shipment forecast, 2017 and beyond
China AMOLED panel capacity expansion forecast, 2016-2020
Global notebook shipment forecast, 2017 and beyond
  • China AMOLED panel capacity expansion forecast, 2016-2020

    This Digitimes Research Special Report examines the China AMOLED industry, focusing on the expansion capacity of the makers, the current implementation plans of major smartphone vendors in the market and the technological hurdles faced by the China makers.

  • Global AP demand forecast, 2017-2020

    Digitimes Research expects global AP shipments to surpass the 1.9 billion mark in 2017, with smartphones remaining the main application. Qualcomm will be leading the market in 2017, as other players continue playing catch up and scramble for funds to invest in more diverse applications.

  • Global notebook shipment forecast, 2017 and beyond

    This Digitimes Special Report examines key factors in the notebook industry, including products, vendors and ODMs, that will affect total shipments in 2017 and through 2021.