After three years of playing catch-chase in production and pricing, domestic manufacturers of flat computer and television screens have finally matured this year, analysts said yesterday.
"The industry has more discipline than it did before," said Frank Su (
"Previously producers lowered prices to grab market share, but being too aggressive on price cuts creates a lose-lose situation for everyone. We won't see as much volatility as before and prices will remain stable for about the next 12 months," he said.
"After going through two cycles of liquid-crystal development, the industry now understands how to increase prices and maintain demand," said Wang Chien-erh (
"The industry is now experienced and mature," he said.
The price of the most popular 15-inch thin-film transistor liquid-crystal display (TFT-LCD) panels is US$195, just US$25 more than at the start of the year, according to the analysts.
Last year the industry saw panel prices drop at US$10 per month, Wang said.
The Chinese-language media speculated yesterday that Chi Mei Optoelectronics Corp (
"I cannot confirm any price rise," Chi Mei spokesman Eddie Chen (
"We haven't talked about this formally. Pricing hasn't changed very much this year, but we are seeing improving dynamics. The price of 17-inch panels is also stable going forward," Chen said.
Sales of flat-screen computer monitors now outnumber traditional cathode ray tubes, according to US-based research firm International Data Corp. But flat-panel makers are eyeing the more lucrative television market, which is growing rapidly.
In July, DisplaySearch pre-dicted that by 2007, 33 percent of TFT-LCD panels will be used for televisions compared to 31 percent for computer displays. This year only 9 percent of panels are destined for TVs.
AU Optronics Corp (友達光電), Quanta Computer Inc (廣達電腦) and Chi Mei have all opened fifth-generation, or 5G, plants in this country to produce 17-inch LCD television screens. Hannstar Display Corp (瀚宇彩晶) also plans to start 5G panel production in the first quarter of next year.
In addition, AU Optronics, Japan's Sharp Corp and South Korea's LG Philips LCD Co are also planning to open more advanced 6G plants next year to make even larger screens.
More production of 17-inch panels is expected to put pressure on the current asking price of US$265.
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