MARCH 11–AUSTIN, Texas–DisplaySearch, a flat panel display market research and consulting firm, revealed in its latest thin film transistor-LCD Supply, Demand and Capital Spending Report that equipment spending rose 36 percent in 2002 to $5.2 billion based on surveys of equipment suppliers to mass production, pilot and R&D lines.
The report also reveals that 2003 spending is expected to rise 24 percent to $6.4 billion with over $23 billion to be spent from 2003 to 2006. Drivers for increased TFT LCD spending include:
— Productivity benefits of larger substrate sizes leading to lower costs, particularly at larger panel sizes. For example, it is estimated that depreciation costs per square meter of monthly input capacity fall by 66 percent from 680 x 880mm to 1500 x 1800mm.
— Strong growth expected in LCD monitors, particularly greater than 15″ LCD monitors, due to lower price points.
— Rapid growth in LCD TVs due to lower prices.
— Strong demand for active matrix displays from the mobile phone and other small/medium markets