Large-area TFT LCD shipments grow by 42pc Q/Q in Q2’09

AUSTIN, USA: Results of the DisplaySearch large-area (10" and larger) TFT LCD survey for Q2'09, as reported in its Quarterly Large-Area TFT LCD Shipment Report, indicate that shipments reached 130 million units, strong growth of 42 percent Q/Q and 10 percent Y/Y (see Table 1).

Due to the increase in prices, large-area TFT LCD revenues grew 51 percent Q/Q, but were still down 29 percent Y/Y, to $15 billion. Strong market demand in Q2’09 led to a recovery in capacity utilization across all applications.

Table 1: Q2’09 Large-Area TFT LCD Shipments by Original Specification and Application (Millions)Source: DisplaySearch Quarterly Large-Area TFT LCD Shipment Report.
* Original specification indicates the panel specification at the time of shipment. Some panels specified for LCD monitors are used for LCD TVs.
** Includes 10.x”, 11.x” and some 12.0” panels used in mini-notes (also called netbooks)

DisplaySearch also revealed details of its survey of panel makers’ shipment targets for Q3’09 through Q2’10. Panel makers are increasing capacity utilization to respond to growing demand and targeting Q3’09 shipments of large-area TFT LCD panels of 152.8 million, up 18 percent from Q2’09 (see Table 2).

If panel makers reach their unit shipment targets, revenue growth is expected to be 32 percent Q/Q.

Table 2: Large-Area TFT LCD Shipment Targets by Original Specification and Applications (Millions)Source: DisplaySearch Quarterly Large-Area TFT LCD Shipment Report.
* Original specification indicates the panel specification at the time of shipment. Some panels specified for LCD monitors are used for LCD TVs.
** Includes 10.x”, 11.x” and some 12.0” panels used in mini-notes.

In Q2’09, Samsung Electronics led in large-area TFT LCD panel revenues, with sales of $4.2 billion, a 27.8 percent revenue share, according to DisplaySearch findings. LG Display was second, with $3.7 billion in revenues and a 25 percent sales share. AUO was third at $2.3 billion with a 15.7 percent share, with CMO closely behind at 15.3 percent share.

In Q2’09, LG Display took first place in unit shipments, but Samsung shipped the most by area. On a unit basis, Korea was the largest supplier of large-area TFT LCD panels in Q2’09 with a 49.8 percent share, but was down from 52.2 percent in Q1’09 due to strong shipment growth of Taiwanese panel suppliers.

Taiwan’s share increased from 38.4 percent in Q1’09 to 41.2 percent in Q2’09.

Table 3 shows the Q2’09 shipment ranking of large-area TFT LCD panels by original specification and application.

Table 3: Top Three Unit Suppliers for Each Application in Q2’09
Source: DisplaySearch
* Includes <26” LCD monitor panels used for LCD TV
** Includes 10.x”, 11.x” and some 12.0” panels used in mini-notes
*** Excludes <26” LCD monitor panels used in LCD TVs

According to David Hsieh, Vice President of DisplaySearch, “We are forecasting that industry utilization will be 87 percent in Q3’09 due to growing orders. In Q2’09 the industry experienced a strong recovery, and shipments reached record highs.

"We expect that strong demand will push panel shipments to another record high in Q3’09. However, strong panel shipments in some cases are due to downstream players piling up inventory, so we believe it will be necessary to watch the supply chain inventory situation closely at the end of Q3’09.”