Taipei, Thursday, September 18, 2014 05:40 (GMT+8)
partly cloudy
Taipei
28°C
Taiwan small- to mid-size LCD panels – 4Q 2008
Jason Yang, DIGITMES Research; Yvonne Yu, DIGITIMES [Tuesday 17 March 2009]
Taiwan shipped 135.6 million small- to medium-size panels in the fourth quarter of 2008, down 21.9% sequentially and down 10.8% from the same period one year earlier.

Introduction

- Taiwan shipped 135.6 million small- to medium-size panels in the fourth quarter of 2008, down 21.9% sequentially and down 10.8% from the same period one year earlier.

- Small- to medium-size panel shipments will drop 16.0% sequentially and 22% on year in the first quarter of 2009.

- For the full year of 2008, Taiwan shipped 590.5 million small- to medium-size panels representing growth of 30.3% from 2007.

- Taiwan accounted for 42.8% of the global small- to medium-size panel market in 2008 and the share is forecast to increase to 43.1% in 2009.

NOTE: Unless otherwise indicated, all figures and tables in this report refer to output from Taiwan makers

Chart 1: Small- to medium-size shipments, 3Q07-1Q09 (thousand units)

Source: Digitimes Research, January 2009

Industry watch

- Shipments dropped in the fourth quarter of 2008 both sequentially and on year due to weak demand in the end-market.

- Shipments in the first quarter 2009 are expected to drop as panel makers continue to reduce their utilization rates during the traditional low season.

- Except the netbook segment, 2009 small- to medium-size shipments will continue to feel the impact of the global economic downturn.

- Handset will remain the top application for small-size panels (5-inch and under) with over 70% share of the global market in 2009.

- Handset vendors will continue to replace STN LCD panels with entry-level TFT-LCD panels, shipments of which are expected to increase 3.2% to 930 million units in 2009 worldwide.

- Global shipments of small-size panels are estimated to grow 1.8% to 1.31 billion units in 2009, up 1.8% compared to 2008.

- The market for medium-size (5- to 10.4-inch) panels is estimated to grow 20.8% to 110 million units, mainly due to the netbook popularity.

- Global shipments of netbook-use TFT-LCD panels are estimated to increase by 106.2% to 30 million units in 2009.

Shipment breakdown

Product breakdown by application

Chart 2: Shipments by application, 3Q07-1Q09 (thousand units)

Source: Digitimes Research, January 2009

- Netbook applications replaced portable DVD player applications as the largest medium-size segment in the fourth quarter, as demand for netbooks remained strong despite the economic downturn.

Chart 3: Shipment share by application, 3Q07-1Q09

Source: Digitimes Research, January 2009

- The share of handset applications in overall shipments increased to a record 68.3% in the fourth quarter of 2008, as shipments to the handset applications decreased less than all other applications, except netbook ones.

- The share of handset applications will grow further in the first quarter of 2009 as Chunghwa Picture Tubes (CPT) and Giantplus Technology will start shipping handset panels to new clients.

Breakdown by technology: Overall shipments

Chart 4: Overall TFT LCD shipment share by technology, 3Q07-1Q09

Source: Digitimes Research, January 2009

- With the economic downturn driving consumers to spend less, system makers are even more apt to adopt less expensive panel solutions so as to lower their production costs and product prices. The share of a-Si panels is expected to continue growing.

Breakdown by technology: Handsets

Chart 5: Handset-use TFT LCD shipment share by technology, 4Q07-4Q08

Source: Digitimes Research, January 2009

- In the handset segment, the share of a-Si panels only grew slightly in the fourth quarter of 2008, as demand from China's white-box market decreased.

Breakdown by technology: DSC

Chart 6: DSC-use TFT LCD shipment share by technology, 4Q07-4Q08

Source: Digitimes Research, January 2009

- Demand from the international DSC vendors for LTPS panels dropped in the fourth quarter amid sluggish demand in the end market.

- In contrast, adoption of a-Si panels in entry-level DSCs grew. As a result, the proportion of the a-Si segment went up.

Top makers

Chart 7: Top-2 makers, 2Q07-1Q09

Note: The Top-2 makers are AUO and TPO
Source: Digitimes Research, January 2009

- With their economies of scale, bigger panel makers may offer more competitive prices than their minor rivals to win orders from international vendors during the economic slowdown. The Top-2 makers, AU Optronics (AUO) and TPO Display, saw their combined share increase in the fourth quarter.

- But in the first quarter of 2009, the Top-2 makers will see their combined share stay flat, while CPT and Giantplus will start shipments to first-tier handset vendors.

Outlook till 2011

Chart 8: Small- to medium-size TFT LCD shipment and Taiwan's global share, 2006-2011 (thousand units)

Source: Digitimes Research, January 2009

- Although the small- to medium-size panel market may drop in 2009 because of the sluggish global economy, Taiwan's overall shipments, driven by handset and netbook applications, are expected to continue to grow.

Realtime news
  • Taiwan market: Asustek unveils G20 gaming desktop

    Before Going to Press | 7h 38min ago

  • WCG Ultra HD TV panel shipments to grow in 2015

    Before Going to Press | 7h 51min ago

  • STMicroelectronics sees increasing MEMS applications in wearable, IoT markets

    Before Going to Press | 7h 51min ago

  • TSMC to spend NT$718.74 billion purchasing equipment

    Before Going to Press | 7h 56min ago

  • Csun to see revenues up in 4Q14

    Before Going to Press | 8h 3min ago

  • Ichia to see revenues drop 10-15% sequentially in 3Q14

    Before Going to Press | 8h 4min ago

  • Lite-On Semi rolls out new full bridge rectifier diodes

    Before Going to Press | 8h 7min ago

  • PCB makers to see HDI board lines running at full capacity till year-end 2014

    Before Going to Press | 8h 8min ago

  • Pegatron component subsidiary Asuspower to acquire production equipment sets

    Before Going to Press | 8h 8min ago

  • Asustek aiming to achieve 15% on-year PC shipment growth; to push gaming notebooks for gross margins

    Before Going to Press | 8h 9min ago

  • Digitimes Research: Mobile DRAM bit growth rate to top 37.5% in 2H14

    Before Going to Press | 8h 10min ago

  • Korea vendors still hold prospects for OLED TVs

    Before Going to Press | 9h 19min ago

  • Supply chains see orders from Motorola Mobility until 4Q14

    Before Going to Press | 9h 24min ago

  • NCC approves Vibo Telecom merger with Taiwan Star Cellular

    Before Going to Press | 10h 15min ago

  • Foxconn donates 3 smart classrooms in Taiwan

    Before Going to Press | 10h 17min ago

Pause
 | 
View more

Taiwan LCD monitors – 2Q 2014

TAIWAN FPD | Aug 25, 14:48

Taiwan's monitor shipments grew 10% in the second quarter compared to a low first-quarter base. With panel makers reducing their supply of monitor applications and monitor vendors reluctant to increase their shipments, Taiwan's makers will only see a single-digit...

China smartphone market and industry – 2Q 2014

CHINA SMARTPHONE | Aug 12, 17:41

A delay in the launch schedule for low-cost 4G smartphones resulted in a mere 4.8% increase in second quarter shipments in the China market. However, with telecom operators planning on increasing their subsidies in the second half of the year, demand will be...

Taiwan small- to mid-size LCD panels – 2Q 2014

TAIWAN FPD | Aug 6, 21:18

Taiwan makers' small- to medium-size panel shipments reached 351.4 million units in the second quarter of 2014, up 16.8% sequentially but down 2.8% on year.

Analysis of China's revised domestic semiconductor industry goals

RESEARCH EXTRAS | Jul 16, 18:09

Facing a funding shortage for local IC manufacturers, the China State Council in June 2014 published guidelines to strengthen government support for China's semiconductor industry, while stating the short-, mid-, and long-term goals for the related industry supply...

The transition to 4k TV - UHD TV market forecast, 2014-2017

RESEARCH EXTRAS | Jun 26, 13:59

Ultra HD TV vendors are facing challenges due to an overall slowdown in the TV industry and are concerned whether relative supply chains can provide compatible Ultra HD content and services. However, trends show that content makers as well as panel and chip makers...

UHD TV market forecast, 2014-2017
Media news email alerts
Greater China touch panel shipment forecast through 2015
  • 2014 global high brightness LED market, trends and shipment forecast

    For the global LED lighting market, the market size will reach US$25.82 billion in 2014 or a market penetration rate of 23.4%. This is attributable to exponential shipment growth for light bulbs, tubes, and directional lamps.

  • Greater China touch panel shipment forecast through 2015

    This Special Report provides forecasts through 2015 for Greater China touch panel shipments with breakdowns based on technology (glass, film, resistive), application (smartphone, NB and tablet) and by firm.

  • 2014 global tablet demand forecast

    This report analyzes the main players, their strategies and shipments forecasts for 2014, as well as other factors contributing to either growth or decline in various segments within the tablet market, with a particular focus on Apple, Google, Samsung, and Microsoft, along with whitebox vendors.