Market Intelligence Center (MIC,
Taipei-based MIC joined Austin, Texas-based DisplaySearch and local major flat-panel makers in forecasting a bullish outlook for the liquid-crystal-display (LCD) industry next year.
But the robust outlook did not help local LCD panel stocks yesterday. Shares of the nation's two biggest flat panel makers, AU Optronics Corp (
Flat screen demand -- mostly screens used in mainstay 15-inch notebook computers -- is expected to outpace supply by 11 percent to 16 percent in the second half of next year extending this year's severe shortage, MIC analyst Charles Chou (
"Global LCD panel makers put off their new next-generation plant construction plans because of massive investment and a high technological barrier. This will slow the overall capacity growth rate," Chou said.
Output of the world's LCD panel makers, including LG Philips LCD Co and AU Optronics, is expected to increase nearly 18 percent year-on-year next year, compared to the annual growth of 36.9 percent this year and 63.8 percent last year, MIC said.
Demand for larger computer and TV screens was on the rise, however, although the growth of PC unit shipments were slowing, Chou said.
Panel makers have also allocated more capacity to make small and-medium sized LCD panels in order to meet strong demand for screens used in digital frames and consumer electronics such as DVD players, he said.
The demand for small and medium-sized LCD panels for mobile phones and portable DVD players is expected to rise 20 percent to 60 million units next year from 50 million this year, MIC analyst Hsieh Pei-fen (謝佩芬) said.
"Supply may not be able to match demand next year, if mobile phone growth in China and digital frames is sustained. Every company is trying to locate sufficient panel supplies as quickly as they can," Hsieh said.
TARIFF TRADE-OFF: Machinery exports to China dropped after Beijing ended its tariff reductions in June, while potential new tariffs fueled ‘front-loaded’ orders to the US The nation’s machinery exports to the US amounted to US$7.19 billion last year, surpassing the US$6.86 billion to China to become the largest export destination for the local machinery industry, the Taiwan Association of Machinery Industry (TAMI, 台灣機械公會) said in a report on Jan. 10. It came as some manufacturers brought forward or “front-loaded” US-bound shipments as required by customers ahead of potential tariffs imposed by the new US administration, the association said. During his campaign, US president-elect Donald Trump threatened tariffs of as high as 60 percent on Chinese goods and 10 percent to 20 percent on imports from other countries.
Taiwanese manufacturers have a chance to play a key role in the humanoid robot supply chain, Tongtai Machine and Tool Co (東台精機) chairman Yen Jui-hsiung (嚴瑞雄) said yesterday. That is because Taiwanese companies are capable of making key parts needed for humanoid robots to move, such as harmonic drives and planetary gearboxes, Yen said. This ability to produce these key elements could help Taiwanese manufacturers “become part of the US supply chain,” he added. Yen made the remarks a day after Nvidia Corp cofounder and chief executive officer Jensen Huang (黃仁勳) said his company and Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) are jointly
United Microelectronics Corp (UMC, 聯電) expects its addressable market to grow by a low single-digit percentage this year, lower than the overall foundry industry’s 15 percent expansion and the global semiconductor industry’s 10 percent growth, the contract chipmaker said yesterday after reporting the worst profit in four-and-a-half years in the fourth quarter of last year. Growth would be fueled by demand for artificial intelligence (AI) servers, a moderate recovery in consumer electronics and an increase in semiconductor content, UMC said. “UMC’s goal is to outgrow our addressable market while maintaining our structural profitability,” UMC copresident Jason Wang (王石) told an online earnings
MARKET SHIFTS: Exports to the US soared more than 120 percent to almost one quarter, while ASEAN has steadily increased to 18.5 percent on rising tech sales The proportion of Taiwan’s exports directed to China, including Hong Kong, declined by more than 12 percentage points last year compared with its peak in 2020, the Ministry of Finance said on Thursday last week. The decrease reflects the ongoing restructuring of global supply chains, driven by escalating trade tensions between Beijing and Washington. Data compiled by the ministry showed China and Hong Kong accounted for 31.7 percent of Taiwan’s total outbound sales last year, a drop of 12.2 percentage points from a high of 43.9 percent in 2020. In addition to increasing trade conflicts between China and the US, the ministry said
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