Large LCD Revenues Surged 116% In Q1

Source: DisplaySearch’s press release.

Revenues for 10” and larger TFT LCDs rose 14% quarter-over-quarter (Q/Q) and a record 116% year-over-year (Y/Y) in Q1’04 to establish a new quarterly high of $9.2 billion (B) as revealed in DisplaySearch’s latest Quarterly Large-Area TFT LCD Shipment Report. 102% Y/Y growth was predicted, but 116% growth was achieved on faster unit growth, 59% vs. a forecasted 51%. In addition, ASPs were 1% higher than projected at $286, the highest value since Q1’01 as larger and more expensive panels gained share and shortage conditions continued resulting in price increases at certain sizes. Unit shipments rose 7% Q/Q to 32.1 million (M), 6% or 1.8M units higher than predicted. All applications grew faster than expected and quarterly TFT LCD supplier profits exceeded $2 billion for the first time. By application in Q1’04:

  • LCD monitor module shipments grew more than twice as fast as predicted, rising 15% Q/Q and 55% Y/Y to a record high 17.5M units and a 55% share of total Q1’04 large-area shipments, up from 51%. The higher than expected growth can be attributed to significant pent-up demand resulting from reduced allocation between Q2’03 and Q4’03 due to supply constraints and higher panel margins in notebooks and TVs. While monitor panel shipments rose 55% Y/Y, revenues were up 98% Y/Y with ASPs up 28% Y/Y. The average LCD monitor panel diagonal grew from 16.5” to 16.7” as the 17” unit share rose from 46% to 50%, with 19” rising from 8% to 11% and 15” falling from 39% to 34%.
  • Notebook PC module shipments fell more slowly than anticipated, declining 5% Q/Q compared with an expectation of minus 7%. The decline occurred as the market adjusts to excessive panel shipments and channel inventory growth in the previous quarter. However, on a Y/Y basis, shipments were still up a robust 50% to 11.3M units. The notebook share of total large-area shipments fell from 40% to 35%, the lowest value to date. Notebook panel revenues were up 103% Y/Y with ASPs rising 35%. The wide aspect ratio share fell from 15% in Q4’03 to 14% in Q1’04 on an 11% Q/Q decline due to channel inventory issues at 15.4”, but was still up significantly from 2% in Q1’03. Conventional high resolution panels (SXGA+ and higher) also lost ground falling from a 13% to a 12% share on a 12% Q/Q decline. 15” XGA remained the most popular panel with a 34% share, but fell 6% Q/Q on weakness in the consumer market. 14.1” XGA gained share, rising from 27% to 29%, on strength in the corporate market.
  • LCD TV module shipments grew significantly faster than expected, up 14% Q/Q vs. a projected 2% decline, as the result of a 26% increase in March after weak performance in January and February. Inventory concerns were eliminated by the end of the quarter and shipments continued to rise in April. On a Y/Y basis, shipments were up 228% to 2.35M units. LCD TV modules reached 7% and 13% of large-area units and revenues respectively in Q1’04, up from 4% and 6% in Q1’03. LCD TV module revenues rose faster than units, up 409% Y/Y on a 55% Y/Y increase in ASPs to $527 and a 17% increase in average diagonal to 20.8”. 20” VGA remained the single most popular panel, rising from a 16% share in Q4’03 to a 20% share in Q1’04. The 20” and larger share rose from a 53% share in Q4’03 to a 60% share in Q1’04 on 27% growth.
  • Other shipments, consisting of public display, industrial products and >10.0” portable DVD player panels, enjoyed the fastest Q/Q growth at 26% Q/Q on the strength of 10” portable DVD player panel shipments. On a Y/Y basis, shipments were up 54% to a record 905K units. Revenues rose 30% Q/Q and 58% Y/Y to $215M and a 2.3% share, up from 2.1% last quarter.

Table 1 reveals large-area share by supplier on an area basis, accounting for differences by supplier in panel size. As indicated:

  • Samsung overtook LG.Philips LCD to become #1 in large-area TFT LCD shipments on an area and a unit basis in Q1’04 for the first time since Q3’02. It enjoyed 20% Q/Q and 141% Y/Y growth, benefiting from the rapid ramp of its second 5th gen line and strong demand from the LCD monitor market. It enjoyed the fastest Q/Q growth in LCD monitor modules of any supplier at 41% on a unit basis and 43% on an area basis. It led the LCD monitor module market for the first time since Q4’01. It continued to hold the leadership position in notebooks despite a 7% area output decline and remained #3 in LCD TVs on a 12% increase in area output.
  • LG.Philips LCD fell to #2 in unit shipments and area output on flat sequential growth due to lack of increase in capacity. On an area basis, it fell from #1 to #2 in monitors and TVs and remained #2 in notebooks. Notebook output was down 12% with monitors up 6%, TVs down 1% and Other down 1%. Its 6th gen fab is now expected to begin to ramp in Q3’04.
  • AU Optronics (AUO) remained the #3 supplier with a 13.2% share, up from 12.2%, on 19% Q/Q and 91% Y/Y growth as it continued to ramp its first 5th gen fab and began ramping its second 5th gen fab. It remained #3 in monitors on a 24% increase, fell from #3 to #4 in notebooks due to a 10% decline, rose from #6 to #5 in LCD TVs on an 80% increase and surged from #8 to #3 in Other on a 266% increase on strong growth in portable DVD players.

Table 1: Large-Area TFT LCD Shipment Share and Growth By Supplier (Area Basis)

TFT LCD Supplier

Market Share

Q1’04 Growth











LG.Philips LCD






























*Includes IDTech


DisplaySearch’s Quarterly Large-Area TFT LCD Shipment Report reveals each supplier’s large-area unit shipments and revenues by application, size and resolution for Q1’04 and forecasts this data forward two quarters through Q3’04. Actual glass input and fab utilization by fab line are also included. The report is now delivered in Powerpoint form with an optional pivot table available and already distributed for the latest issue. To find out which markets and suppliers will gain or lose ground in Q2’04 and Q3’04, please contact Jerry Benson at DisplaySearch at 512-459-3126 for subscription information.

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