Exportation of TFT-LCD Expected to Reach $6 Billion This Year

It is predicted that this year`s exportation of the TFT-LCD would exceed $6 billion for the first in history. On the other hand, experts expect a heated competition in this industry due to the short-term decrease of the price and the continuous efforts by Taiwan to catch up with Korean counterparts. According to a report by Ministry of Commerce, Industry and Resources, as of September, the total volume of the TFT-LCD exported amounted to $4.56 billion, a 54.1% increase from last year.

This year alone, the export is expected to reach a record high of more than $6 billion, which is 47.3% higher than last year`s total of $4.08 billion, says the ministry.

The increase in export has been helped by favorable situations in the market and escalation in production. LG Philips LCD, Inc. and Samsung Electronics, Inc. have mobilized all of their production lines to make more products available for the export. In addition, many companies around the world are beginning to replace TV monitors with the TFT-LCD products.

The production pattern by domestic companies in that industry has contributed as well. This year, they have raised the production of highly value-added monitors of 17 inches or more to 33% in the first quarter, 44% in the second quarter, and 50% in the third.

The price per monitor, however, has decreased steadily. A 15-inch monitor was exported for $234 in January. But in September, it was exported for $211. Some exports predict that it would be lowered to less than $200 by December.

In the meanwhile, Taiwan has been steadily catching up. In the first quarter of last year, it occupied only 12.1% of the world market share, as opposed to Korea`s 39.7%. The gap, however, has been narrowed, and now Taiwan occupies, as of the end of third quarter this year, 31.5% while Korea retains 40.9%.

Ja-Ryong Koo bonhong@donga.com