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DisplaySearch Raises 2004 TFT LCD Equipment Spending Forecast: Latest Report Anticipates Record Capital Outlay (27/1/2004)

DisplaySearch, the worldwide leader in flat panel display (FPD) market research and consulting, has increased its already record-breaking forecast of 2004 TFT LCD equipment spending. According to DisplaySearch's latest Quarterly TFT LCD Supply/Demand and Capital Spending Report, 2004 is now expected to be by far the biggest year ever in TFT LCD equipment spending, with equipment expenditures projected to reach $9.42 billion, 41% higher than the previous annual record achieved in 2000. In response to strong demand for more and larger-screen notebook PCs, LCD monitors and LCD TVs, panel suppliers are rapidly accelerating fab spending plans, benefiting from larger, more productive tools that significantly reduce panel costs.Film fans can now see their favourite movie stars in their living room, larger than life and in stunning clarity and colour. Breakthrough technology in the NEC HT1100 means that your family and friends can enjoy high contrast movies with vivid colour and sound in your home.

DisplaySearch reports that the record 2004 spending will be up 43%, compared to 2003 when spending rose 26% to $6.59 billion. The projected increase in 2004 spending is integral to the elevated long-term growth in TFT LCD revenues, particularly the increased penetration of LCD TVs into the television market, which DisplaySearch now expects will exceed 50 million units in 2008. DisplaySearch anticipates that during this forecast period, 2004 will represent the highest concentration of investment, as manufacturers accelerate new fab investments in response to overwhelming demand. The report includes the following highlights:

-- Taiwan producers are expected to lead the spending charge, as they capture an estimated 49% capex share in 2003 and a forecasted 50% share in 2004. Taiwan is also expected to lead in capex in 2005.

-- Chinese manufacturers are building 5th gen fabs in 2004, and are expected to account for 11% of 2004 spending. Although Japan is estimated to account for a 26% share in 2003, their share is expected to drop to 10% in 2004.

-- Korea will also play a significant role, as their share of the total spending rises from an estimated 24% in 2003 to a forecasted 28% in 2004.

-- Investment in 5th generation equipment is estimated to represent over 60% of the total array equipment spending in 2003, and is predicted to account for more than 50% in 2004. 6th generation equipment will dominate in 2005.

-- Among the principal suppliers, Samsung is expected to lead in spending in 2004, as they capture a 17% share with the expansion of their second 5th generation line, as well as the world's first 7th generation fab. AUO is projected to be a close second, followed by LG.Philips LCD, with newcomer Innolux fourth at 10.5%

The DisplaySearch report also presents a rolling eight-quarter outlook for TFT LCD supply and demand for all TFT LCDs, large-area TFT LCDs, and small/medium TFT LCDs. It also indicates when TFT LCD prices will begin to fall and at what rate.

DisplaySearch's Quarterly TFT LCD Supply/Demand and Capital Spending Report analyzes current and future supply/demand dynamics, and utilizes DisplaySearch's proprietary Realistic Capacity(C) calculation methodology.

www.displaysearch.com