TFT LCD shipments reach records

May 2010 shipments of large-area TFT LCD panels were 58.8 million units, up 9% from April, and revenues were 7.5 billion, up 7% M/M, according to the DisplaySearch Monthly TFT LCD Shipment Database.

These results surpassed the previous monthly high record level in March 2010. Furthermore, they were also better than a year ago, as shipments and revenues increased 36% Y/Y and 60% Y/Y.

The May results indicate that although the industry is going through a panel price and inventory correction period, panel shipment momentum is not slowing down and has bounced back to reach record monthly highs after a monthly decline in April.

All applications showed good growth from the previous month, with notebook and slate/mini-note panels showing the strongest growth with 16% M/M.

It is to be expected that the panel price will fall gradually in Q2’10 due to the slowdown in demand. However, it is considered unlikely that the price decline will be drastic, as shipments continue to grow. On the other hand, tightness in the LCD module and backlight components supply chain and confidence about strong demand in the next quarter have encouraged panel makers to maintain their present high-capacity use rates and the downstream buyers to accumulate more preparatory inventories.

This explains why panel prices are falling and shipments are increasing, concurrently.