AUSTIN, USA: Results of DisplaySearch's large-area (10" and larger) TFT LCD survey for Q4'08, as reported in its Quarterly Large-Area TFT LCD Shipment Report, indicate that shipments reached 93.5 million units, a decline of 19 percent Q/Q and 17 percent Y/Y.

Due to drastic cuts in panel prices, large-area TFT LCD revenues fell 33 percent Q/Q and 48 percent Y/Y, to $12 billion. Slow market demand in Q4'08 led to reductions in capacity utilization across all applications as shown in Table 1.

Table 1: Q4'08 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.
** Notebook PC panels include mini-note (also called netbook) PC panels of 10.x".

DisplaySearch also revealed details of market performance for 2008 as a whole. Total shipments of large-area TFT LCD panels reached 439 million in 2008, 11 percent growth from 2007. Shipments of panels for notebook PCs grew by 22 percent Y/Y, and shipments of TV panels grew by 20 percent Y/Y.

If LCD monitor panels <26" for use in LCD TVs are included, LCD monitor panel shipments were basically unchanged from 2007 to 2008. However, excluding <26" monitor panels used for TVs, a segment that grew 54 percent Y/Y, shipments of LCD monitor panels declined 2 percent Y/Y. Table 2 shows 2008 large-area TFT LCD shipments by original specification and by application.

Table 2: Large-Area TFT LCD Shipments by Original Specification and Applications in 2008 (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.
** Notebook PC panels include mini-note (also called netbook) PC panels of 10.x".

Large-area TFT LCD revenues reached $72 billion in 2008, a 1 percent decline from 2007. All but three of the 19 large-area TFT LCD panel makers saw revenues decline from 2007 to 2008.

Samsung Electronics' large-area TFT LCD revenues grew by 9 percent Y/Y, CMO's by 10 percent and Sharp's by 17 percent. The other top producers had Y/Y revenue declines, including LG Display down 2 percent and AUO down 12 percent, respectively.

In 2008, Samsung Electronics ranked #1 in large-area TFT LCD panel revenues with sales of $18.5 billion and a 25.7 percent revenue share, according to DisplaySearch findings.

LG Display was #2, with $14.6 billion in revenues and a 20.3 percent sales share. AUO was ranked #3 at $12.3 billion and a 17 percent share. In 2008, Samsung also took first place in units and area shipments. LG Display and AUO were second and third, respectively.

Taiwan remained the largest supplier of large-area TFT LCD panels in 2008, but its unit share fell to 44.1 percent from 47.2 percent in 2007. Korea's share grew from 40.3 percent in 2007 to 43.5 percent in 2008.

Shipment rankings by application varied. Samsung led in LCD monitor panel shipments, with a 17.6 percent market share, followed closely by CMO with 17.5 percent and LG Display with 17 percent. LG Display led in shipments of notebook PC panels, with 30 percent share, closely followed by Samsung with 29 percent. AUO was #3 with 21 percent share.

Not including <26" LCD monitor panels used for LCD TV, Samsung led TV panel shipments with 22 percent. LG Display followed at 20 percent, and CMO ranked #3 with 18.4 percent, followed closely by AUO with 18.3 percent. Table 3 shows the 2008 shipment ranking of large-area TFT LCD panels by original specification and application.

Table 3: Top Three Unit Suppliers For Each Application In 2008

*<26" LCD monitor panels used for LCD TV are included in LCD monitors.

According to David Hsieh, vice president of DisplaySearch, "We are forecasting that industry utilization will be less than 60 percent in Q1'09." The report discloses quarterly shipment targets and plans by panel makers for each application in 2009.

"Q1'09 shows a 10 percent Q/Q decline on a unit basis from Q4'08; LCD monitor panels will decline by 9 percent, notebook PC panels by 11 percent and LCD TV panels by 10 percent. "Other applications" is the only sector expected to have Q/Q growth, up 8 percent, according to panel makers' shipment targets for Q1'09.