USA: Suppliers of large-sized LCD panels are set to report strong third-quarter results due to robust demand from all the major application markets, combined with price increases during every month of the period, according to iSuppli Corp.

iSuppli defines large-sized LCD panels as those having a diagonal dimension of 10-inches or larger. When all the results are in, global large-sized LCD panel revenue in the third quarter is expected to increase by more than 17 percent compared to the second quarter and 45 percent compared to the same period in 2006, iSuppli believes. The large-sized LCD market has been on the road to recovery since the second quarter of 2007.

"iSuppli estimates that revenue rose to $16.7 billion in the second quarter, up from $13.4 billion in the first," said Sweta Dash, director, LCD and projection research for iSuppli. "Despite an anticipated softening in demand growth in the fourth quarter, with the strong third-quarter results we expect, large-sized LCD panel revenue for all of 2007 to rise by more than 27 percent to $68.7 billion, up from $53.9 billion in 2006."

As for shipments, the large-sized LCD market is expected to reach 370 million units by the end of 2007. "iSuppli expects 20 percent unit growth for monitor panels, 35 percent growth for notebook panels and 51 percent growth for the TV panel market in 2007 compared to 2006," Dash said.

LG Philips LCD, the first major panel maker to announce third-quarter results, started the earnings season off impressively, announcing an 18 percent increase in revenue compared to the second quarter and a 43 percent rise compared to the third quarter of 2006. Samsung followed with an equally impressive 20 percent increase in LCD revenue compared to the second quarter, and a 34 percent increase compared to the third quarter of 2006.

Tight supplies spur price increases
Supplies of large-sized panels fell short of demand in the third quarter due to customers placing orders for the holiday season earlier than usual. Other factors behind the shortage included cuts in panel suppliers' fab utilization rates in the first half of 2007, slowed production expansion plans and greater capital-spending discipline among LCD makers.

Supplies of desktop-computer monitor, notebook and 32-inch and smaller TV panels remained constrained throughout the third quarter, spurring significant price increases. Most mainstream notebook and monitor panel prices increased by 7 to 10 percent from June to September, after a 10 to 15 percent price increase from April to June. The average 32-inch and below TV panel price rose by only 2 to 3 percent from June to September after a 4- to 5-percent price increase from April to June. The 40/42-inch TV panel price decreased by less than 5 percent from June to September.