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TFT-LCD Substrate Shipments to Grow Only 4% in Q4: DisplaySearch

Post Time:Nov 28,2008Classify:Industry NewsView:377

Shipments of glass substrates to thin film transistor-liquid crystal display (TFT-LCD) manufacturers might increase only an annual 4% in the fourth quarter, according to data recently released by DisplaySearch, a leading flat panel display (FPD) market researcher and consultancy.

In the fourth quarter of 2007, DisplaySearch said, the YoY growth rate of substrate shipments was 31%. Since the second quarter this year, TFT-LCD producers began adjusting capacity utilization to compensate for falling panel prices, the market-research firm said, and adjustments are still being made.

DisplaySearch also reported that capacity reductions began earlier in this business cycle than in previous ones, and the impact on glass-substrate suppliers was sudden and unexpected. Glass suppliers have responded by planning reductions in their glass-furnace utilization and adjusting prices. As a result, while substrate area shipments are increasing, sales revenues are increasing at a slower pace.

Glass Substrate Makers` Capacity Shares (Q3 `08)

Supplier

Japan

Korea

Taiwan

US

Singapore

Worldwide

Y/Y*

Corning2

7.0%

28.4%

17.1%

2.7%

 

55.3%

-0.7

Asahi Glass

10.6%

4.6%

7.4%

   

22.6%

1.9

Nippon Electric Glass

17.6%

       

17.6%

-0.1

NH Techno Glass

0.7%

0.7%

1.8%

 

1.3%

4.5%

-0.5

Total

35.9%

33.8%

26.3%

2.7%

1.3%

100.0%

--

*: Number of points that capacity share changed from Q3’07 to Q3’08

Source: DisplaySearch, November 2008.

David Barnes, DisplaySearch vice president of strategic analysis, pointed out that about two-thirds of Corning`s glass-substrate capacity is located in Taiwan so local TFT-LCD companies impacted Corning more than other suppliers. Utilization reductions by South Korean panel makers were less severe and demand for Samsung Corning Precision glass was stronger, however, he added.

The vice president added that to operate through this TFT-LCD business cycle is challenging for glass suppliers because total demand keeps growing. In the first quarter of 2008, substrate area shipped increased 47% from a year earlier, but capacity increased only 37%. Suppliers need more capacity, but they must be prudent, Barnes said.

Source: CENS.comAuthor: shangyi

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