LCD demand keeps growing

By Jim Carbone -- Purchasing, 1/3/2008 12:53:00 PM

The global large-sized liquid crystal display panel market will reach a milestone in 2008 when 100 million panels ships for the first time ever. Large size panels measure 10 inches or more diagonally. 

Global LCD-TV panel shipments are expected to reach 181.1 million units by 2011, rising at an annual rate of 27.7%, up from 53.2 million units in 2006, according to researcher iSuppli. In terms of revenue, LCD-TV panels will grow to $52.9 billion by 2011, increasing 19% per year from $22.2 billion in 2006. 

Large-sized LCD unit shipments in 2007 will amount to 80.5 million units before hitting the milestone of 102.5 million units in 2008 

The factors driving the panel market over the 100-million-unit mark in 2008 include falling prices for both panels and LCD-TVs, transition to digital television, performance and resolution improvements and the Summer Olympics, which should spur TV sales especially in China. 

Strong demand for LCD panels from consumer electronics manufacturers is posing challenges for LCD manufacturers, according to Scott Birnbaum, vice president of liquid crystal displays for Samsung Electronics in San Jose, Calif. 

“One of the biggest challenges that the industry is facing is the amount of product being driven by the consumer cycle,” he says. With consumer products, there is more demand at the end of the year. In the past, the IT business cycle was the driver and demand is more spread out through the year. 

“The challenge is to keep factories optimized and running in linear schedules when demand is not linear,” says Birnbaum 

In 2008, there will also be strong demand from LCD panels used for notebook computers. The notebook panel market was expected to reach 99.6 million units in 2007 and 161.5 million units in 2011, driven by lower prices, wireless capabilities and the shift to larger display sizes. 

Because of strong overall LCD demand, buyers can expect prices to be mixed in 2008. Prices should fall in the first quarter, but rise in the third.

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