Large-Area TFT LCD Shipments Fell 3% Q/Q in Q1’09 to 91.4M Units; Revenues Fell to $10B, Down 52% Y/Y; Panel Manufacturers Targeting 37% Q/Q Unit Growth in Q2’09

Sort Date: 05052009

AUSTIN, TEXAS, May 5, 2009—Results of the DisplaySearch large-area (10” and larger) TFT LCD survey for Q1'09, as reported in its Quarterly Large-Area TFT LCD Shipment Report, indicate that shipments reached 91.4 million units, a decline of 3% Q/Q and 18% Y/Y (see Table 1). Due to the decline in shipments, large-area TFT LCD revenues fell 17% Q/Q and 52% Y/Y, to $10 billion. Slow market demand in Q1’09 led to reductions in capacity utilization across all applications.

Table 1: Q1’09 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.
** Includes 10.x”, 11.x” and some 12.0” panels used in mini-notes (also called netbooks)

DisplaySearch also revealed details of its survey of panel makers’ shipment targets for Q2’09 through Q1’10. Panel makers are increasing capacity utilization to respond to growing demand and targeting Q2’09 shipments of large-area TFT LCD panels of 125 million, up 37% from Q1’09 (see Table 2). If panel makers reach their unit shipment targets, revenue growth is expected to be 47% Q/Q.

Table 2: Large-Area TFT LCD Shipments by Original Specification and Applications in Q2’09 (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.
** Mini-note (also called netbook) PC panels are indicating the 10.x”, 11.x” and some 12.0” panels for Mini-Note

In Q1’09, Samsung Electronics ranked #1 in large-area TFT LCD panel revenues, with sales of $2.9 billion, a 28.7% revenue share, according to DisplaySearch findings. LG Display was #2, with $2.5 billion in revenues and a 25.4% sales share. CMO was ranked #3 at $1.4 billion with a 14.4% share. In Q1’09, Samsung also took first place in units and area shipments. LG Display and CMO were second and third, respectively. Korea was the largest supplier of large-area TFT LCD panels in Q1’09 with 52.2%, while Taiwan’s share remained unchanged from Q4’08, at 38%. Table 3 shows the Q1’09 shipment ranking of large-area TFT LCD panels by original specification and application.

Table 3: Top Three Unit Suppliers for Each Application in Q1’09

* Includes <26” LCD monitor panels used for LCD TV
** Includes 10.x”, 11.x” and some 12.0” panels used in mini-notes
*** Excludes <26” LCD monitor panels used in LCD TVs

According to David Hsieh, Vice President of DisplaySearch, “We are forecasting that industry utilization will be 80% in Q2’09 due to growing orders. We expect that Q1’09 represented the worst of this cycle as revenues and shipments reached recent lows. But just as spring has replaced winter, the outlook is improving and we will definitely see shipment and revenues grow by double digits in Q2’09.”

About DisplaySearch
DisplaySearch, an NPD Group company, has a core team of 59 employees, located in Europe, North America and Asia, who produce a valued suite of FPD-related market forecasts, technology assessments, surveys, studies and analyses. Visit the DisplaySearch blog to read about how our top analysts are interpreting up-to-the-minute issues that impact the display industry, and join us in this discussion about technology and the flat panel industry. The company also organizes influential events worldwide. Headquartered in Austin, Texas, DisplaySearch has regional operations in Chicago, Houston, Kyoto, London, San Diego, San Jose, Seoul, Shenzhen, Taipei and Tokyo, and the company is on the web at http://www.displaysearch.com/.

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