MARCH 11--DisplaySearch (Austin, TX;www.displaysearch.com/usfpd2003), an FPD market-research and consulting company, revealed in its latest Quarterly TFT LCD Supply/Demand and Capital Spending Report that TFT LCD equipment spending rose 36% 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% to $6.4 billion with more than $23 billion to be spent from 2003 to 2006. Drivers for increased TFT LCD spending include: productivity benefits of larger substrate sizes lead 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% from 680 x 88 0 mm to 1500 x 1800 mm; strong growth is expected in LCD monitors, particularly greater than 15 -in. LCD monitors, due to lower price points; and rapid growth in LCD TVs due to lower prices.
Equipment prices are not growing as fast as previously anticipated, as substrate sizes grow due to increased pressure from panel suppliers to keep price increases down, as well as growing competition from new entrants as the size and growth of the TFT LCD equipment market attracts new players. Simpler equipment architectures are also contributing to lower equipment prices.
