TFT LCD manufacture rockets

30 April 2010

Spending on TFT LCD manufacturing equipment will make a dramatic recovery and reach a record breaking $13.2 billion (€9.9 billion) in 2010, according to DisplaySearch. Spending sunk to a recession-fuelled low of $0.7 billion in 2009 but now LCD producers in Korea, Taiwan and China are rapidly expanding capacities.

“The investment side of the Crystal Cycle has entered a kind of self accelerating phase,” commented Charles Annis, DisplaySearch vice president of Manufacturing Research. “Most leading LCD panel makers are trying to pull in capacity expansions as fast as they can, and are competing to secure equipment orders. This should translate to a very healthy year for many equipment companies.”

“Many of the expansions and new fabs being built this year will continue to install equipment well into 2011, but as all this capacity ramps to full production, demand will have to continue to grow at high rates or the industry could be setting itself up for the next major over-supply and down side of the Crystal Cycle in 2012,” he added.

Korea will account for the majority of equipment purchases in 2010. In 2011, the China capacity race is expected to really take off. The rapid growth of the China market creates a variety of both challenges and opportunities for capital equipment companies. The opportunity of an expanded customer base is attractive for all suppliers and in particular for Korean equipment companies that are very cost competitive.