TFT-LCD panel makers enter into 8G race

This article was published by the Taiwan Headlines on February 24, 2006. It reports that the global TFT-LCD panel industry is getting increasingly competitive, as all of its top-five players are ready to jump into construction of eighth-generation (8G) production lines.

Taiwan's AU Optronics Corp. is the island's No. 1 and the world's No. 3 panel maker. The company will start constructing an 8G panel plant in 2006 at the Central Taiwan Science Park. It is also accelerating construction of a 7.5G plant in central Taiwan.

Chi Mei Optoelectronics Corp., Taiwan's No. 2 and the world's No. 4 panel maker, is constructing a 7.5G plant at the Southern Taiwan Science Park, which is scheduled to begin mass production in 2007. The company has also decided to set up a new 8G facility in southern Taiwan.

Currently, the mainstream size of an 8G panel is 2,160mm by 2,460mm. Market analysts point out that as the mainstream sizes of LCD TVs in the global market keep getting bigger, smaller panel makers are expected to confront problems in raising funds for new-generation plants. The booming business opportunities generated by LCD TVs have also attracted the attention of not only panel makers, but also IC, PC and even cellphone manufacturers worldwide. This makes the global market even more competitive.

In 2005, global demand for LCD TV panels reached about 22.6 million units, and the volume is expected to grow to about 41.3 million units in 2006 - an 83 percent annual growth rate. Meanwhile, in 2005, about 20 million LCD TVs were sold worldwide, while the number is expected to grow to about 36 million in 2006. In general, the global LCD TV market enjoys an 80 percent to 100 percent annual sales growth.