Large-area TFT LCD shipments surge

Global large-area TFT LCD panel shipments reached a record high of 665 million units in 2010, with strong growth in TV, notebook PC, tablet (slate) PC, and public display applications.

The strong results indicate signs of recovery from the economic crisis in 2009, according to the DisplaySearch Quarterly Large-Area TFT LCD Shipment Report. Q4’10 was the strongest quarter, with 176.5 million units shipped, up 9% from Q3’10.

Monitors are a relatively mature market for large-area TFT LCD, with a mere 12% Y/Y growth from 2009, while other applications had stronger growth. Notebook PC panels reached 178 million units, a healthy 26% Y/Y growth. The strongest growth segment was mini-note/tablet/slate PC panels, which achieved a 64% Y/Y increase, thanks to a strong 18 million units of 9.7″ tablet PC panel shipments in 2010. TV panel shipments grew 36% Y/Y to 221 million units.

Last year was the first time LCD TV panel shipments surpassed LCD monitor panel shipments. In addition, public display panel shipments grew substantially, up 55% Y/Y, from 1.1 million units to 1.7 million.

“At the beginning of 2010, DisplaySearch forecasted that the large-area TFT LCD industry would experience two crystal cycles during the year, which proved to be true,” noted David Hsieh, DisplaySearch vice president and research leader for large-area panels.

Panel shipments reached 156 million in Q1’10, and grew to 170 million in Q2’10. At the end of Q2’10, the entire supply chain adjusted its inventory levels, which resulted in a drop in large-area TFT LCD panel prices. Q3’10 panel shipments fell to 162 million units as panel makers cut capacity utilisation. Despite these results, Q4’10 demonstrated strong growth, reaching 176 million units as the panel industry gradually recovered.

Q4’10 LCD TV panel shipments remained flat at 57.5 million units. This indicates that the supply chain is still adjusting inventories and brands are not aggressively refilling their pipelines. DisplaySearch forecasts that Q1’11 panel shipments will decline 2% Q/Q due to seasonal trends. Meanwhile, TV panel shipments will fall to 55.6 million units, based on panel makers’ shipment targets. Therefore, panel inventories will likely be low by the end of Q1’11.

On a unit basis, LG Display led 2010 shipments with a 25.9% share, followed by Samsung with 22.9%. AUO’s share was 16.8% and Chimei Innolux’s (including CMO) was 16.5%. LG Display also led in shipment area, while Samsung maintained its leadership in revenues.