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  • Taiwan Makers Obtain More LCD Panel Orders from Japan
  • March 17, 1999 (TAIPEI) -- Japanese and U.S. producers of computer monitors are placing original equipment manufacturing (OEM) orders for liquid crystal display (LCD) panels with Taiwan-based companies.
    This is one of the reasons that the LCD panel market is experiencing a severe case of under-supply.

    Many Taiwan-based makers of notebook PCs are entering into or expanding LCD monitor OEM production.

    Japanese producers are among the world's leaders in LCD panel manufacturing. When ordering LCD monitors from Taiwan partners, they usually supply their own panels. Yet now, the shortage has become so severe that even the leading Japanese suppliers are ordering LCD panels from Taiwan along with monitors. NEC Corp. and Toshiba Corp. are among those placing major orders.

    Compal Electronics Inc., a leading maker of notebook PCs, is likely to win orders from NEC.

    A Compal executive said that notebook PC makers that can offer a large number of panels will win more orders as compared with specialized monitor makers. Compal ordered large numbers of LCD panels from LG Electronics Inc. of Korea last year -- which puts Compal in a good position to supply panels to Japanese companies this year.

    Global LCD monitor demand is estimated at 3 million to 4 million units this year, according to industry observers.

    An executive with Taiwan's Chuntex Electronic Co., Ltd., however, warns against making such predictions now, because supply-demand conditions are likely to change after June.

    Taiwan's semi-official Institute for Information Industry (III) made a relatively conservative projection of 2.7 million units for 1999.

    (Commercial Times, Taiwan)

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    Updated: Wed Mar 17 01:10:24 1999 PDT