TFT LCD equipment spending approaches peak
Spending on TFT LCD manufacturing equipment is expected to surge from the recession-induced low of US$7 billion in 2009 to approach previous cycle peaks of US$13.2 billion in 2010.
Amid sustained high factory use, LCD producers in Korea, Taiwan and China are expanding capacity or building new fabs on continuously improving demand expectations, says a DisplaySearch quarterly report.
Demand remained robust through the first quarter of this year, due in part to strong demand from China before and during the Lunar New Year holiday and as LCD TVs rapidly displace CRTs in the high growth market.
In turn, this helped sustain industry-wide average fab use around 90% from the third quarter of 2009. With fab use at near maximum, panel makers need to invest now to continue to increase output.
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, says the report.
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