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Oversupply of TFT LCD screens expected in 2H of this year

Posted on Monday, August 02 2004 @ 18:32:41 CEST by

TFT LCD makers and market research firms expect a 5-8% oversupply of TFT LCD screens in the second half of this year.
Most TFT LCD makers expect the oversupply to ease a bit in the fourth quarter on sliding panel prices and production reallocation from LCD monitors panels to notebook panels.

Chunghwa Picture Tubes (CPT) projects supply to exceed demand by 12.1% and 10.8% in the third and fourth quarter, respectively. However, the overall oversupply should in fact remain at only 5-8% in the second half, as companies reduce production and reallocate capacity, the company added.

AU Optronics (AUO) forecasts supply to surpass demand by 5% in the third quarter and then ease to 3% in the fourth quarter. Samsung Electronics optimistically estimates a mere 0.2% oversupply in the third quarter, with a slightly higher oversupply (1.2%) in the fourth quarter.

DisplaySearch expects an oversupply of 12% in the third quarter on diminishing demand and larger capacity from TFT LCD makers. In the fourth quarter, oversupply should slide to 8% as demand begins to pick up. However, a possible tight supply of key components would result in an oversupply of only 6% in the third quarter, according to DisplaySearch.
The Taiwanese research firm Topology Research reported however that they expect an oversupply of 8% in the third quarter, and a 6% oversupply in the fourth quarter because of increasing demand for notebook and LCD TVs in that quarter.

Source: DigiTimes



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