Major volatility emerging in LCD demand/supply
Foundries
Front-end service providers: Consolidated July sales +18% MoM at TSMC and
+7% at UMC. Positive.
Back-end service providers: Consolidated sales +4% MoM at ASE and +1% at
SPIL. Somewhat positive.
IDMs and fabless IC design companies
July sales +2% MoM at Macronix International, a major supplier of Mask ROM for
the Nintendo DS platform. Mask ROM sales -18% MoM. Neutral.
Consolidated sales +21% MoM at MediaTek, Taiwan's largest maker of chipsets
for optical disk drives.
July large TFT LCD panel shipments
Shipments rose 4% MoM to 18.062m units. Panel demand increased. Capacity
utilization rose marginally as supply of glass substrate was tight, and panel
demand/supply continued improving. Panel prices increased in almost all 42-inch
and smaller categories. Somewhat positive.
July panel prices and supply/demand trends
Monitor panels: Prices rose.
Notebook panels: Prices increased.
TV panels: 42-inch and smaller panel prices rose, 46-inch and larger panel prices
were flat.
August panel prices and demand/supply trends
Notebook panels: Prices increased. Double-digit OPM for some models.
Monitor panels: Prices rising. Double-digit OPM for some models.
TV panels: 42-inch and smaller panel prices should rise, and 46-inch and larger
panel prices should stay in the even range. OPM continues improving.
Notes: 1) Translation of Japanese-language report, issued 25 August.
2) Opinions in this report about listed Taiwanese companies are those of our
analysts covering the companies. Opinions about the industry in general and
implications for Japan are those of the author. See page 32 for analyst coverage,
valuation, and risks.