A movement by consumers to the next generation of electronics gadgets will propel the value of Taiwan-made LCD screens to US$3.86 billion next year, according to the Market Intelligence Center (市場情報中心), a government-sponsored market research group.
Demand for new computers that come bundled with flat LCD monitors instead of older, box-shaped desk hogs will propel the value of larger screens by 38.3 percent next year to US$3.5 billion, the center said.
A recent surge in sales of new electronics gear like DVD players, mobile phones, digital cameras and camcorders will also last into next year, propelling sales of smaller LCD panels. The center predicts that these smaller screens will bring in US$364 million next year, a 72 percent increase in value.
The group said the global production value of LCD panels, including all screen sizes, will reach US$14.8 billion next year.
The news boosted shares of two Taiwanese LCD makers yesterday. Chunghwa Picture Tubes, Ltd (
This year, Taiwan accounted for 28 percent of global LCD panel output, while Korea supplied 47 percent and Japan 24.8 percent.
Gains in the industry are not expected to come without some interim pain. The center predicts that a drop-off in sales during the first six months of next year will result in falling prices for the panels.
"Although it is expected that the TFT LCD panel price will start to fall in the beginning of 2002, such a decline will be much more moderate compared to that of 2001," said Sean Wu, senior analyst at the center, adding that the drastic decline in screen prices in 2001 led to the sale of more screens for not much more money.
Taiwanese LCD panel makers are expected to ship 89.6 percent more units than last year, a total of 17.3 million screens but only increase sales revenues by 29.3 percent over a year ago to US$2.7 billion.
Overproduction is to blame for this phenomenon, as Taiwanese, Korean and Japanese firms jockey for market share at the expense of profits.
The center said it expects demand to catch up with supply around July next year when prices would begin to rise.
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