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DisplaySearch Topical Report Reveals Changing Relationships Among Panel Suppliers and Brands and Their Impact on TV Industry Dynamics (21/4/2008)

DisplaySearch, the worldwide leader in display market research and consulting, recently released a new topical report called Asian LCD TV Panel Maker Alliances and Joint Ventures Analysis <http://www.displaysearch.com/cps/rde/xchg/SID-0A424DE8-5522E728/displaysearch/hs.xsl/asian_alliances_and_jvs.asp> that explains how changing alliances and joint ventures among Asian TFT LCD panel makers is creating new opportunities for the flat panel display and TV industries. In the last year, many new relationships have been formed including alliances, mutual investments and supplier agreements, as shown in Figure 1. These new relationships are impacting fab expansion plans and timing, supplier-assembler-brand relationships, panel allocation by market segment and brand, regional supply strategies and more.

DisplaySearch's Asian LCD TV Panel Maker Alliances and Joint Ventures Analysis, authored by Vice President David Hsieh, covers the most critical strategic analysis behind the multiple relationships among the Asian LCD TV panel suppliers, TV brands and OEMs. The LCD TV panel supply and allocation relationships in 2007 and 2008 expectations are revealed in the report as well as the LCD TV brands' 2008 and 2009 business plan and strategies. The report's findings are based on an analysis of key industry players' relationships-providing various scenarios and perspectives for the FPD and TV industries.

Other key findings in the report include

* Samsung and Sony have aggressive strategies to each capture 20% share of worldwide LCD TV market, driving them to purchase more LCD TV panels from others panel makers and OEM TV makers, especially from Taiwan suppliers.

* Among the top five brands, Sharp has the lowest Y/Y growth rate and has allocated more of its fabrication of LCD panels to external customers. The most significant is Sony.

* The most impacted TFT LCD panel makers by the Sony-Sharp joint venture will be Samsung, AUO and CMO. These three will have to re-assess their customer base when considering an investment in Gen 10 fabrication facilities.

* DisplaySearch estimates that the Sharp Gen 10 glass substrate size will be 2880 ? 3130 mm, which will provide better economic cuts of 40" and 46" panels for Sony than previous candidate sizes. 2880 ? 3130 mm is also optimum for 57" and 65" panels produced 8-up and 6-up, respectively.

* Through the S-LCD joint venture of Sony and Samsung and their focus on the 40" and larger TV market, the two companies have successfully grown the 40" and larger LCD TV market, extended their brand recognition and market share and applied significant pressure on other TV brands.

* DisplaySearch estimates that the recently announced IPS Alpha Gen 8 fab will focus on 32" and 46" panels, as well as 52" LCD TV panels for Panasonic.

* Through the KDIA (Korea Display Industry Alliance), Samsung and LG Display (formerly known as LG.Philips LCD) will develop a complicated and delicate relationship covering their product plans, components and new fabs.

* Through the alliance of Pioneer and Sharp, as well as Pioneer's announcement to retreat from plasma panel manufacturing, Pioneer will begin LCD TV manufacturing with assistance from Sharp.

* JVC will supply LCD TVs made at their Mexico plant to Funai, while JVC will market LCD TVs in Europe produced by Funai's Poland plant. Meanwhile, the two will possibly co-develop LCD TVs in the future.

* DisplaySearch expects more joint ventures and alliances in the future, especially among smaller LCD TV panel makers seeking investments in expensive Gen 7 and Gen 8 fabs.

This new topical report consists of over 75 insightful slides featuring data and insights on fab expansion timing, glass input, size targets, panel-TV value chain results, panel supplier-TV brand allocation expectations and more.

www.displaysearch.com