Samsung Electronics expects the TV segment to be the main growth driver in the large-size LCD panel industry next year, with the 40-inch and above segments seeing the highest growth, at 370% on year.
At a recent forum held by JP Morgan, Samsung stated that it expects industry demand for large-size LCD panels to grow 24% next year and reach 236 million panels. The Korea-based maker expects growth in LCD TV panel demand to lead all segments, with industry demand expected to rise 57% on year to reach 35 million panels.
In comparison, demand in the PC-use segments will grow at a much slower pace, with demand for monitor and notebook panels to grow only 17% and 22%, respectively, Samsung said.
Although LCD TV panel demand will grow 57%, Samsung explained that falling prices for 40-inch and larger LCD TVs will spur sales for the related panel segment to grow at a much larger 370% clip, and account for 13% of the market, up from 4% this year. By producing 40-inch panels at its seventh-generation (7G) fabs, Samsung is able to improve the production costs 35-45% over 5G production, the company claimed.
In addition to its 7G joint-venture with Sony (S-LCD), which Samsung claims will see a full ramp of 60,000 substrates starting this month, the company plans to begin producing panels at its second 7G plant starting in April 2006. The total capacity at its two 7G plants is designed to reach 150,000 substrates per month.
Samsung expects to have 22% of the global LCD TV panel market in 2005.
Article translated by Carrie Yu and edited by Michael McManus
