CMO and Tatung: 40-inch and above LCD TVs will not become mainstream until 2007

Although the LCD TV market is now gradually moving to larger sized products, 40-inch and above LCD TV will not become the mainstream segment until 2007, when 7.5 generation (7.5G) plants come online, Taiwan-based LCD panel makers Chi Mei Optoelectronics (CMO) and home appliance maker Tatung predicted at the Taipei TV, Film and Digital Content Exhibition 2005 (Nov 11-13).

Starting from the second quarter of this year, 32-inch and 37-inch LCD TV together grabbed almost 30% of the LCD TV market share. With a number of 6G plants coming online since then, these two TV segments are now the mainstream, according to AU Optronics (AUO). A 6G substrate can be cut into eight 32-inch LCD TV panels or six 37-inch LCD TV panels.

CMO originally planned to cut three 37-inch LCD TV panels and three 22-inch widescreen LCD monitor panels with each of its 5.5G substrates. However, the company currently totals only 10,000 37-inch LCD TV panels per month, as its plant faced yield issues and is still not as cost competitive as 6G plants, according to CMO.

CMO now has one 5G plant and one 5.5G plant with respective maximum monthly capacities of 145,000 and 180,000 substrates.

Although the company has improved the yield rates at its 5.5G plant, CMO said it will focus on 32-inch LCD TV panels in the near future. When its second 5G plant begin operation in September 2006, the company will begin transitioning to 42-inch LCD TV panels. A 5G substrate can be cut into two 42 LCD TV panels, CMO added. Once CMO’s 7.5G plant comes online in the first quarter of 2007, the company will focus on 42-inch LCD TV panels there, while its second 5G plant will shift production to PC-related applications, CMO stated.

Tatung president WS Lin also pointed out that the 32-inch segment became the mainstream this year, replacing the 30-inch segment. With volume production starting at the 6G plant of its affiliate, Chunghwa Picture Tubes (CPT), Tatung is focusing on 32-inch and 37-inch products this year. The company is looking to move to larger sizes next year with a plan to release a 42-inch LCD TV, Lin said. However, Lin also stated that the prices for 40-inch and above LCD TVs will still not be competitive in 2006. Therefore, the market for over 40-inch LCD TV should not take off until 2007.

Sources: company, compiled by DigiTimes, November 2005.

Article translated by Emily Chuang and edited by Michael McManus