2013 TFT LCD industry and market outlook

Global production capacity for large-size TFT LCD panels (9-inch and above) is expected to grow only 3.4% in 2013, which represents the lowest growth rate ever for the industry, while Taiwan-based makers' production capacity for large-size panels is expected to rise by 3.2% on year in 2013.

China-based panel makers are expected to bump up their overall global proportion of large-size TFT LCD panel production capacity to 12.4% 2013, which may jump up even higher to 13.7% in 2014 due to an additional 8.5G line BOE has invested in Hefei, China. That plant is expected to start mass production by the first quarter of 2014.

On the demand side, Digitimes Research expects the average size of LCD TV panels to see a significant increase in 2013, with the average size at 38.8-inch, up from 36.6-inch in 2012. The 2.2-inch increase in 2013 contrasts the approximate 1-inch growth seen annually from 2007-2011.

Global large-size TFT LCD panel demand is expected to increase by 11.2%, which will cause demand for LCD TV panels in particular to be tight during the hot selling seasons. Also, because PC demand is decreasing, panel makers are taking a conservative stance on their notebook and monitor panel development strategy in 2013 and are focusing more on tablet panel production.

Digitimes Research estimates that in 2013 China-based panel makers will continue to have an upper hand in the 32-inch LCD TV panel market in China, and they will expand their product offerings by providing new panel sizes such as 28- and 46-inch.

Samsung Display's revenues from AMOLED panels will increase by 25% on year in 2013 and its AMOLED panel profit margin will be stable at approximately 18-20%. The company will also continue developing 5-inch and above AMOELD panels that have Full HD resolution.

AUO has surpassed Samsung in notebook panel shipments to become the number two notebook panel supplier in the world. However, Digitimes Research expects demand for PC-use panels to be flat in 2013, which will cause AUO to pay more attention to tablet panels and increase its related shipments by 260% in 2013.

Innolux will most likely focus on Ultra HD TV panels in 2013, and the maker is expected to hold over 50% of the market.