LCD Glass Demand Rises On Falling Prices, DisplaySearch Reports

[The following is a release from DisplaySearch]

November 3, 2008

Sales of glass substrates to TFT LCD producers may grow only 4% Y/Y in Q4’08, according to the recently released Q3’08 Quarterly LCD Glass Substrate Report by DisplaySearch, the worldwide leader in display market research and consulting. Specifically, the report compares this figure to the 31% Y/Y growth in Q4’07, before TFT LCD producers began adjusting capacity utilization to compensate for falling panel prices in Q2’08, and notes that adjustments are still being made. DisplaySearch also reported that capacity reductions began earlier in this business cycle than in previous ones, and the impact on glass suppliers was sudden and unexpected. Glass suppliers have responded by planning reductions in their glass foundry utilization and adjusting prices. Thus, while substrate area shipments are increasing, sales revenues are increasing at a slower pace. As summarized in the following table, Corning (including its Samsung Corning Precision Glass joint venture in Korea) remained the largest supplier in terms of substrate area capacity, but its share is down slightly. Asahi Glass (AGC) capacity share increased two points Y/Y as it prepared to serve future needs in Japan, where Panasonic and Sharp plan new TV panel plants. “Corning plants have nearly two-thirds of glass substrate capacity in Taiwan, so utilization reductions by Taiwanese TFT LCD companies impacted Corning more than other suppliers,” explained David Barnes, DisplaySearch Vice President of Strategic Analysis. “Fortunately, utilization reductions by Korean panel makers were less severe and demand for Samsung Corning Precision glass was stronger,” he added. “Managing through this TFT LCD business cycle is challenging for glass suppliers because total demand keeps growing. In 1H’08, substrate area shipments increased 47% over 1H’07, but capacity increased only 37%. Suppliers therefore need more capacity, but they must be prudent,” Barnes said. For information on DisplaySearch’s Q3’08 Quarterly LCD Glass Substrate Report, please contact your DisplaySearch sales representative. If you need further information or assistance please contact us at +1.512.687.1511 or sales@displaysearch.com.

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