TAIPEI – Prices of thin-film transistor liquid-crystal displays (TFT-LCDs) have been rising since the third quarter of 1999 due to a severe shortage, according to Nikkei Business reports. The price increases have prompted TFT-LCD makers in Japan, Korea and Taiwan to expand operations, which in turn has resulted in a paucity of key components. The shortage of driver integrated circuits (ICs) will affect Taiwan manufacturers` expansion plans in 2000, according to market analysts.

However, Asian companies remain optimistic about prospects this year. Chunghwa Picture Tubes Ltd. plans to boost monthly shipments from 25,000 units to 30,000. Acer Display Technology Inc. and Unipac Optoelectronics Corp. also are expected to begin mass production this year.

Earlier, more optimistic, predictions held that Taiwan`s TFT-LCD output would surpass the NT$100 billion benchmark in 2000. But because driver ICs are in short supply now, market analysts believe that a figure of between NT$70 billion and NT$80 billion is more likely. (NT$30.82=U.S.$1)

Local producers point out that they do not have an adequate supply of driver ICs and glass substrates, but the problem is even more severe with driver ICs. Because only a few Japanese suppliers are able to provide these components in large quantities at this time, it is likely that Taiwan makers` shipments will experience major setbacks this year.

According to Nikkei Business sources, some local manufacturers even sent ranking executives to Japan to plead for supplies. The problem, however, is not so much that Japanese suppliers are unwilling to sell to Taiwan TFT-LCD makers, but rather that they cannot satisfy the large combined demand from Taiwan, Korea and their local industry.