"The market is worried about new capacity," said Steve Chu, who oversees the equivalent of US$81 million at ING CHB Securities Investment Trust Co in Taipei.
Third-quarter LCD supply probably exceeded demand more than earlier anticipated as consumers bought fewer LCD TVs than expected and inventory rose, El Segundo, California-based researcher ISuppli Corp said last month in a press release.
Still, price declines are slowing and the average price of desktop computer monitor panels, which account for more than half of LCD demand, has risen each month from the previous since April, climbing to US$186 last month.
"The bottom has definitely passed, it's just a question of how strong the recovery is," said Michael Min, an analyst at Korea Investment & Securities Co in Seoul. "There are some concerns about oversupply next year but the sentiment now is pretty good and we're in an uptrend."
LCD TV demand worldwide is poised to more than double to 22 million units this year, according to Samsung. The company had earlier projected 20 million units.
"Expectations are that LCD TVs will help cushion the oversupply," said Victor Shih, who helps manage about US$2.4 billion at HSBC Asset Management Taiwan.
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