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15" TFT LCD panels might drop to $240 by the year-end

Analysts from the Taiwanese Market Intelligence Center forecast 15" TFT LCD panel prices to drop in the second half-year of 2002.

This might happen after the successful launch of 5-generation LG-Philips and Samsung Electronics fabs, allowing the companies to reduce prices and take over a large part of the market. As a result Taiwanese makers will have to follow these two and reduce prices as well.

According to MIC, Hewlett-Packard and Dell already plan the TFT LCD monitor sales campaign in the 4Q to increase the proportion of PCs sold with TFT LCD monitors to 30% comparing to 15% last year.

So, even without LG-Philips 15" TFT LCD panel prices might drop below $250 from the current $255-265, and down to $240 in the fourth quarter. TFT LCD panel prices are also affected by component prices (for polarizers, color filters and driver ICs) that continue to reduce as well. So, it will not necessarily reduce TFT LCD producers´ profit margins. It might even increase TFT LCD monitor demand and help to boost LCD shipments.

MIC predicts that global TFT LCD supply and demand will reach a balance in the fourth quarter.

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