Global LCD supply exceeds demand

Worldwide supply of large-sized TFT-LCD panels slightly exceeded demand in the first quarter, a trend that is expected to continue until the fourth quarter, when a shortage will arise, according to iSuppli/Stanford Resources.

Large-sized TFT-LCD panels, i.e. panels 10.x inches and larger, are used in applications like notebook PCs, desktop computer monitors and flat-panel TVs. The supply of such panels exceeded demand by 0.3 percent in the first quarter.

Total demand decreased from 30 million units in the fourth quarter of 2003 to 28.5 million units in the first quarter of 2004. Unit demand declined slightly in the first quarter due to the seasonal decrease in sales for notebook computers and only a moderate increase in monitor sales.

Demand for large-sized TFT-LCDs will grow every quarter through the end of 2004, iSuppli/Stanford Resources predicts.

The market is estimated to be in a slight oversupply condition through the third quarter of 2004, with availability of panels exceeding demand by 6 percent in the second quarter and by 5.4 percent in third quarter. However, in the fourth quarter, demand will exceed supply by 4.3 percent, as seasonal factors drive up sales, iSuppli/Stanford Resources predicts.