DisplaySearch forecast 2006 LCD panel excess exacerbate

Market research company DisplaySearch said the third quarter LCD panel array (LCD panel array) production supply, 2006 panel overcapacity exacerbated. DisplaySearch raised its forecast for 2006 TFT LCD device spending to $9 billion 370 million, slightly below $9 billion 600 million in 2005. Since 2004, a large number of capital expenditures are expected to lead to long-term overcapacity in array capacity. Long term capital expenditure is expected to grow gently, close to the level of 2003.

According to DisplaySearch vice president Charles Annis: "the first three quarters of this year demand is stronger than expected, the market expectations increased, and the improvement of the future investment prospects. Manufacturers continue to plan and implement investment in the plant to prepare for the expected growth in demand."

DisplaySearch TFT LCD said that the capital equipment spending ranked the top three manufacturers Samsung, AUO and CMO (AU Optronics) (Chi-Mei Optoelectronics), which is $1 billion 300 million, $1 billion 100 million and $994 million, respectively, 14.8% and 17.9% share of 13.3%.

From 2000 to 2009, is expected to compound overall active matrix LCD productivity growth rate of 39%, grew from 4 million 500 thousand to 81 million 500 thousand. At the same time, the compound annual growth rate of color filter capacity is expected to be 38%, from the growth of 5 million 200 thousand to 93 million 500 thousand.