Panel enterprises to LED industry layout

Many manufacturers adjust the production line proportion, and towards the solar cell (Dongjie, mirle, crystal color, Mason etc.), LED (Pei Xin), medical imaging (such as potential or gallant) high margin market layout, decentralized business risk. By the global panel overcapacity, resulting in the effect of panel manufacturers investment expansion plan for the delay, in 2007 the global TFT-LCD equipment market scale hit the lowest since 2004 ($8 billion 700 million), compared with $11 billion 500 million in 2006, 24.5% decline. As the largest market demand in Taiwan since be insulated from panel equipment market scale only NT $93 billion 400 million, compared with 2006 23% decline; local equipment output value of NT $38 billion 460 million, self-sufficiency rate of over 41.2%.

In the fourth quarter of 2007, with Japan's Sharp announced the launch of the ten generation line, Samsung and Sony S-LCD joint venture will build second eight generation line, AUO and CMO announced into the next generation plant construction and expansion of existing production lines and other movements, Japan, South Korea and Taiwan to process equipment demand began to recover, the release of related equipment purchase orders at that time, not only the reversal of domestic market slump in the atmosphere, more into a growth momentum at the beginning of this year. However, the liquid crystal industry cycle cycle speed is too fast. 2008 of the third quarter, affected by the global economic recession, the overall consumer market, resulting in LCD panel demand as expected and abrupt price or the impact of the global panel manufacturers have reduced the capacity utilization rate (the rate cut: Samsung 5%, LGD 10%, 10%, 15%, CMO, AUO CPT 10%), in order to reduce this year's capital as a regulator of expenditure.

AUO and CMO has announced plans to suspend more 7.5 and 6 generation plant plant expansion, will affect the close relationship between the TFT-LCD equipment market supply and demand. Flat forecast 2008 Taiwan TFT-LCD process equipment market, the scale of about NT $109 billion 800 million, the output value of about NT $55 billion 200 million. The self-sufficiency rate, because of the domestic equipment factory made in some types of process equipment, the ability to significantly improve the panel factory using local equipment will increase, while ULVAC, AKT and other foreign TFT-LCD equipment manufacturers have come to Taiwan to set up base, production or assembly production increased year by year, the proportion of TFT-LCD estimated localization equipment in China this year, up to 50.3%.

TFT-LCD equipment manufacturers in China in the first three quarters of this year, are better than the same period in 2007, the growth rate of about 3% ~ 62%. Due to the LCD equipment demand volatility, many manufacturers through the adjustment of the production line and in the proportion of solar cells (Zhi Sheng, gallant, Dong Jie, mirle, crystal color, Mason etc.), LED (Pei Xin), medical imaging (such as potential or gallant) high margin market layout, decentralized business risk.

Source: China Semiconductor Lighting Network