AUSTIN, TEXAS, January 22, 2009 — In December 2008, shipments of large-area TFT LCD panels reached the lowest level since May 2007, according to the DisplaySearch Monthly TFT LCD Shipment Database. Shipments were 26.97 million units, down 6% M/M and 24% Y/Y. December revenue for large-area TFT LCD panels fell to $3.0 billion, down 22% M/M and 57% Y/Y, the lowest level since July 2006.
DisplaySearch also found that panel demand has weakened significantly in all three of the major TFT LCD applications—notebook PCs, monitors and TVs—and panel suppliers have reduced capacity utilization. Notebook PC panel shipments were 8.3 million, down 3% M/M and 21% Y/Y, which is the lowest level since May 2007. Monitor panel shipments were 10.7 million, down 2% M/M and 31% Y/Y, which is the lowest level since June 2006. TV panel shipments were 7.0 million, down 13% M/M and 17% Y/Y, which is the lowest since July 2007.
A combination of slow demand, the tendency of leading brands to favor internal sources of supply, and depreciation of the Korean won has disadvantaged Taiwanese panel suppliers, leading to loss of market share. As Table 2 shows, Korean suppliers had more than half the market share in December. This is the second month since Korean suppliers' shares exceed 50% on a unit basis.
In terms of market share by application, LG Display led in notebook with a 36.7% unit share, followed by Samsung at 33.7% and AUO at 17.2%. LG Display also led the monitor segment with 23.7% unit share, followed by Samsung at 21.5% and AUO at 16%. In addition, Samsung led in the TV segment with 23.9% unit share, followed by LG Display at 23.2% and CMO at 17.9%.
DisplaySearch also tracks 5.0" to 10.2" mini-note panel shipments by size by suppliers in the report. DisplaySearch's report findings also concluded that mini-note panel shipments were 1.4 million in December, 2008, a 43% M/M decline from 2.5 million units in November, 2008 due to inventory adjustments. AUO led the mini-note panels with 36% unit share, followed by CPT at 31%.
According to David Hsieh, Vice President of DisplaySearch, "The December results were disappointing, but are a true reflection of low TFT LCD low demand. All TFT LCD manufacturers, including Korea and Japan-based companies, took countermeasures to reduce capacity utilization in December, and this will continue in Q1'09. We believe that monthly shipments in Q1'09 will maintain this low level and that worldwide consolidated TFT LCD makers' utilization will be 60% or even less. The TFT LCD industry is going through the hardest time in a decade."
Hsieh added, "Despite this, we are also seeing that shipment and inventory were controlled and the panel price are likely to stabilize in Q1'09. In some instances, the panel price has been reduced to the cash cost level in business negotiations to avoid the further bleeding of panel suppliers. This is the first signal of the TFT LCD industry hitting bottom."
