Sep 27 2005
While the worldwide market for array processing equipment for TFT-LCDs grew 34% to reach $4.2 billion in 2004, a combination of several factors will drop the growth rate to only 3% in 2005, according to the report LCD Processing: Challenges, Directions, Markets, recently published by The Information Network, a New Tripoli, PA-based market research company.
"Equipment purchased in 2004 for a rash of new 5th, 6th, and 7th-generation facilities become operational in early 2005," notes Dr. Robert N. Castellano, President of The Information Network. "But an oversupply of LCDs as a result of the large plant investments in the past few years will drop array processing equipment to only 3% growth in 2005, down from the 7% growth projection we made in late 2004. Higher oil prices and lower consumer confidence are also dampening LCD sales, particularly in the high-end TV market.”
A number of LCD makers had announced or have considered delays in the opening of new factories because of overcapacity, including HannStar, Chunghwa Picture Tubes, AU Optronics, and Chi Mei Optoelectronics. A 6% oversupply in large-size TFT-LCD panels will exist in the second half of 2005.
“We project that the oversupply situation in LCD panels will increase to nearly 7% in Q1 2006 and continue until Q4 2006. LCD manufacturers will delay equipment purchases and as a result, array processing equipment will drop 13% in 2006 to $3.8 billion,” added Dr. Castellano.
Lithography tools from Canon and Nikon will lead the equipment market with sales of $1.4 billion in 2005, dropping to $1.3 billion in 2006.
The Information Network is a leading consulting and market research company addressing the semiconductor, computer, and telecommunications industries.
http://www.theinformationnet.com