Demand for TFT-LCD for Monitor Increases

The core component of PC monitor and digital television, TFT-LCD industry has extended exponentially. So the total turnover of leading companies such as Samsung Electronics and LG Phillips LCD will be more than 5 trillion Won this year.

On August 18th, according to Samsung Electronics and LG Phillips LCD, the turnover for the first half of this year, was more than 1,5 trillion Won separately.

In the first half of this year, Samsung Electronics recorded total revenue of 1.68 trillion Won; exporting of 1.6 trillion Won and domestic sale of 98.4 billion. It excludes internal supply of 30% of total turnover to monitor and mobile phone business teams. It is equivalent to 70% of last year turnover of 2.13 trillion Won.

LG Phillips LCD also recorded more than 1 trillion turnover in the second quarter first, and 1.83 trillion turnover for the first half of this year. Especially LG Phillips LCD began to operate the 5th generation manufacturing line in May and Samsung Electronics will do in the next year. So the turnover of the companies will increase further.

According to reliable source, despite the decreasing of market share and of price of LCD, the turnover is estimated to increase.

In case of Samsung Electronics, market share for LCD of 17 inch PC monitor decreased from 50.1% in three quarters of last year to 39.7% in two quarters this year, but the units sold increased from 855 thousands 2.02 million units. In case of LG Phillips LCD, LCD of 18.1 inch increased by 120 thousands units every month in one quarters, 150 thousands units every month in two quarters and 180 thousands units every month in three quarters.

According to LG Phillips LCD, the price of LCS decreased because PC market is on off seasons in the last quarter, but the supply will increase as the price has decreased.

Joong-Hyun Park sanjuck@donga.com