LCD Demand Rebound Expected in Early 2010

Despite some disappointing retail stats and shipment demands for the just-concluded holiday sales season, LCD makers (primarily in South Korea and Taiwan) are currently headed for what several analysts call a "robust" first two quarters of 2010. This is based on renewed demand for flat-panel HD/SD television sets and computer monitors, where LCD technology dominates.

The LCD industry is rebounding from a downturn in 2009, mainly due to an upsurge in demand by China for glass substrates used for LCD units. This is despite signs of some economic problems in other areas of the vast Asian nation, according to Reuters.

If China's strong demand for LCD byproducts for HD/SD TV and PC production (as well as Chinese consumer demands, which are considerable) continue as expected into 2011, the end-result will be lifting the LCD sector from its seasonal downturn somewhat earlier than initially estimated by industry analysts.

Industry consultant, Mirae Asset Securities, is projecting strong sales in China, as the country heads into the Lunar New Year holidays. The group also projects demand will be raised by the upcoming Super Bowl, Winter Olympics and World Cup events. Mirae says that such sporting events "can bolster TV demand and could bring strength in the first half."

American analyst DisplaySearch recently upgraded its global LCD shipment forecast for HD/SD sets to more than 170 million units for the current calendar year. This represents a 22 percent increase beyond its 2009 projections.

China is on track to become the world's biggest consumer of LCD HD/SD sets by 2011.