In contrast, Taiwanese LCD companies tend to slash spending on research and development during difficult times, which ultimately leads to loss of market share, while their South Korean rivals doubled spending to prepare advanced and better-priced products for the upturn and as a result have been less affected by the current industrial downturn, Hsu said.
The market share of Taiwanese companies is expected to fall from 44 percent in 2007 to 34 percent this year, according to DisplaySearch.
The market share of South Korean companies is set to expand from 43 percent in 2007 to 53 percent this year.
To break this vicious cycle, Hsu suggests the government, AUO’s creditor banks and Chimei should continue to bankroll the panel companies in the development of new technologies and then perhaps some of the former glory of Taiwan’s LCD industry can be recaptured, Hsu said.
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