While TFT-LCD Demand/Supply Will Remain Balanced for Notebooks in 2006, Potential Oversupply Exists for Monitors and TVs, IDC Predicts

FRAMINGHAM, MA – OCTOBER 17, 2005 – While the notebook TFT-LCD panel demand and supply ratio is expected to stay in balance through the end of 2006, potential oversupply for LCD monitor panels exists in 2006, a new IDC study reveals. In addition, although demand is expected to explode for LCD TV panels, the currently balanced sufficiency ratio will quickly turn to oversupply in the first half of 2006 due to seasonal factors.

"The overall LCD panel market is in a balanced status in 2005, but we expect to see slight oversupply in 2006, especially in the first half of the year," said Clark Tseng, manager, Worldwide TFT-LCD research. "As panel vendors continue to build up new production capacity for next generation LCD panels, larger output will come online in the next few quarters. The strategic capacity allocation between TV and office products will play a pivotal role in determining the short-term demand-supply balance."

Among the key findings of the IDC study are following:

— Slower-than-expected LCD capacity buildup has precluded the potential oversupply in the second half of 2005.

— Worldwide OEM demand for TFT-LCD panels will exceed 225 million units in 2006.

— LCD monitors will account for over 50% of LCD panel demand by the end of 2006.

— LCD notebooks and monitors will enjoy relatively stable pricing, while large-sized TV panel may suffer serious price erosion.

IDC's new study, Worldwide TFT-LCD Panel Demand and Supply Q105 – Q406 Forecast and Analysis, (IDC #34085) covers the OEM demand and the supply of large-sized (greater than 10 inches) TFT-LCD panels used in notebook PCs, desktop PCs, and TFT-LCD TVs. The study also presents major panel vendor's ramp-up plans of new generation TFT-LCD plants for 2005 and 2006.

To purchase this document, call IDC's Sales hotline at 508-988-7988 or email sales@idc.com.

For more information about IDC's Liquid Crystal Displays research, contact Anne-Sophie Dankens at adankens@idc.com.

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