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Company News >> Global LCD processing equipment market is expected to decline by 14% in 2007 3rd,July,2018

According to market research firm The Information Network, the market for array processing equipment for flat panel displays worldwide fell by 11% in 2006 and is expected to decline further by 14% in 2007.

Canon and Nikon's Lithography equipment is leading the market with sales of $1.2 billion in 2006. At the end of last year, Nikon's market share was 57%. In 2007, the field of lithography will drop to $1 billion.

The overall array processing equipment market is expected to recover in 2008 and 2009, up 28% and 8% respectively.

“As the LCD industry continues to face overcapacity, many vendors are slowing their capacity expansion by cutting budgets,” said Robert N. Castellano, president of The Information Network, in a statement. “As a result of slower growth and rapid price declines, AUO, Chi Mei Optoelectronics and LG.Philips LCD recently announced that they have cut back on capital expenditures in 2007. In January 2007, the price of 37-inch TV panels has been in mid-2006. The $700 fell below $500."

There are other bad signs in the industry. Castellano also pointed out that integration is a strategy as a means of controlling production capacity. "Youda and Guanghui merged, and now there are rumors that Philips will sell 32.9% of the shares in LG.philips LCD, second-line panel makers such as Huaying (CPT) and Hanjing (HannStar) for the 73% market share Manufacturers are always under pressure."

He also said: "Reducing capacity utilization is another strategy. In 2007, the capacity utilization rate of LCD manufacturers has dropped from 95% at the end of 2006 to around 80%, but since prices continue to decline, this approach does not help."