China likely to surpass Japan in LCD output in H2

China will likely surpass Japan in production of liquid crystal display (LCD) panels for TVs and computer monitors in the second half of this year as Chinese manufacturers continue to shore up their capability, a market report showed Friday. Market research firm DisplaySearch said in the report that China is expected to be the world's third-largest producer of large-area thin film transistor(TFT)-LCD panels in the July-December period after South Korea and Taiwan. The research firm said China's monthly output of this type of LCD panels will reach 4.1 million units in the second half, while Japan is expected to produce 2.3 million units. In the six-month period, China will grab 6.7-6.9 percent market share of the large-area TFT-LCD panel output in the world, and Japan will hold about 5.4-5.6 percent. TFT LCDs are used in TV sets, computer monitors, projectors, mobile phones and other handheld gadgets. Large-area TFT-LCD panels are ten inches and larger and represent the largest part of the market by value since they are used primarily for TVs and monitors. "Korean makers continue to be the leader in large-area TFT LCD production, accounting for approximately half of global output, followed by Taiwanese makers, which account for about 40 percent," said Shawn Lee, senior analyst for DisplaySearch. "However, the likelihood that China will pass Japan may indicate the beginning of a phase in which China plays a more important role in the global flat panel display industry." Chinese companies like Beijing BOE Optoelectronics Technology Ltd., Shenzhen China Star Optoelectronics Technology Co. and Nanjing CEC-PANDA LCD Technology Co. will be ramping up newer generation fabrication plants within the year, the global researcher said. DisplaySearch expected that the push by Chinese panel makers could influence the supply-demand balance, panel prices and value chain relationships in the industry.