Large-size LCD panel makers expect shipments to grow by 11%,revenues by 14%in 2Q12 Press release;Alex Wolfgram,DIGITIMES[Tuesday 15 May 2012]Large-area TFT LCD panel shipments declined in both fourth-quarter 2011 and irst-quarter 2012,reflecting adjustments in supply chain inventories.However,with brands and OEMs increasing orders and with panel makers increasing capacity utilization,second-quarter 2012 shipments are expected to grow by double digits.This,along with the recent panel price rebound,indicates the recovery of the TFT LCD industry.
According to the DisplaySearch large-area(9-inch and larger)TFT LCD shipments fell by 3%on quarter in first-quarter 2012 to 170.2 million.However,shipments are expected to make a strong recovery in second-quarter'2012 to 189.6 million,up 11%sequentially and 4%on year
In first-quarter 2012,shipments for each of the three major applications-notebook PCs,desktop monitors and TVs-showed on-quarter declines.The first quarter is traditionally a slow one for panel purchases,as downstream companies are conservative in panel purchases while making inventory adjustments.Tablet PC panels on the other hand continued to show strong momentum,with 18%sequential growth,driven by 9.7-inch shipments.
In second-qaurter 2012,the tablet PC application is expected to continue to show the strongest growth.Apple's recent release of its new iPad with QXGA resolution has encouraged panel makers to expand shipments in second-quarter 2012.Shipments of panels for notebook PCs and desktop monitors are expected to grow by 9%and 2%in second-quater 2012,respectively.TV panel shipment growth is expected to be 12%,primarily driven by increased purchases from China as well as demand from North America triggered by recent positive sell-through results while large-area TFT LCD shipment revenues are expected to increase to US$20.6 million,up 14%Q/Q,marking the first time in the past three quarters that the industry has experienced positive revenue growth.
David Hsieh,vice president,Greater China Market,at NPD DisplaySearch,said the TFT LCD industry has experienced unprecedented changes after a long-standing over-supply accompanied by falling panel prices.Panel makers are restructuring and adding new technologies and processes to reduce costs and enhance performance.Hsieh added that the elements are in place for 2012 to be a year of gradual recovery,as panel prices rebound and shipments increase.Shipment units,shipment area,and revenues are all expected to grow by double digits in second-quarter 2012,remarked Hsieh.
Meanwhile,according to DisplaySearch,LED backlight penetration reached 59.2%of LCD TV panel shipments in second-quarter 2012.Panel makers pointed out this figure will reach 60%in second-quarter 2012 and 70%in fourth-quarter 2012.These targets account for scenarios in which panel makers ship the cell and open cell only,and downstream companies assemble the backlight unit together with the module.Many panel makers and LCD TV set makers have reportedly developed a lower-cost,direct-type LED backlight,targeted at the market segment that prioritizes panel cost over thickness,which NPD DisplaySearch estimates that direct-type LED backlit panels will grow to 17%of all LCD TV panel shipments in fourth-quarter 2012.
