TFT-LCD Makers See Severe Undersupply in Upstream Elements
December 16, 1999 (TAIPEI) -- The severe undersupply in TFT-LCD's upstream materials could affect domestic makers' ability to compete with leading Korean makers.
Top makers like Samsung Electronics Co., Ltd. and LG.Philips LCD Inc. have adequate supplies from different sources, industry observers said.
Japanese TFT-LCD makers are pulling out of monitor and notebook manufacturing to seek better profits from other products, and Korean manufacturers are now chief competitors to Taiwan makers.
Despite the fact that Taiwan manufacturers effectively control the massive downstream market in LCDs and notebooks, the restricted production in TFT-LCDs has capped Taiwan makers' global supply and the inadequate supply in upstream materials is a major bottleneck.
Korea's LG.Philips LCD pointed out that the high humidity in Taiwan has made raw-material reservation difficult. This, plus the fact that Taiwan has been relatively late in accessing this industry and a supply chain has yet to be established, makes Taiwan a far cry from being a leading supplier.
In contrast, Korean LG.Philips LCD and Samsung said material supply has been adequate this year, but predicted driver ICs, passive elements, DRAMs and glass substrates will be in undersupply next year. Japanese Sharp Corp. and Hitachi Ltd., two major suppliers to LG.Philips LCD, will be focused on internal demand next year, causing offshore delivery to be trimmed significantly.
LG.Philips LCD predicted 1999 shipments will reach 3.50 million TFT-LCDs, slightly down from Samsung's.
LG.Philips LCD has two TFT-LCD production lines, 370mm x 470mm and 590mm x 670mm, with production efficiency reaching 80 percent.
(Commercial Times, Taiwan)
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