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AU faces LCD slowdown after turnaround in Q3

Post Time:Oct 26,2009Classify:Company NewsView:360

TAIPEI, Oct 22 (Reuters) -

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After several months of strong LCD sales, analysts say the industry could face a repeat of the downcycle in 2010 if demand dwindles, while sector leaders Samsung Electronics and LG Display in

Analysts say AU, the world's No.3 LCD maker, could lose money again in the first quarter of next year after Taiwan's top LCD maker forecast weaker panel prices for PCs and flat-screen TVs into the final quarter of 2009.

'I don't have a crystal ball to tell me how bad the market will be next year but I am sure panel prices might drop for one to two quarters,' said Robyn Hsu, who manages T$28 billion ($867 million) of equity assets for Taiwan's Capital Investment Trust.

In a downcycle, top TV brands Samsung and LG typically secure more LCD panels from internal production to maintain higher loading rates in their own facilities, and tend to place fewer orders with other suppliers like AU.

Source: ReturersAuthor: shangyi