SAN JOSE, Calif. -- The flat-panel display equipment market grew 30 percent in 2008, but the sector is expected to drop by 41 percent in 2009, according to The Information Network, a New Tripoli, Penn.-based market research company.
That's lower than the firm's previous forecast, which called for 14 percent growth in 2009. "Although LCD manufacturers have announced capex reductions of about 50 percent for 2009 in response to the global economic crisis, capex is a moving target subject to change throughout the year,'' said Robert Castellano, president of The Information Network, in a statement.
For example, in anticipation of a banner year in 2008, initial capital spending forecasts made in early 2008 called for an 86 percent increase. In fact, capital spending ended up growing only 13 percent, he said.
''Panel makers are stringently controlling costs while improving the technology innovation at this time," added Castellano. "While unit shipments of large-size panels will increase 6.5 percent to 448.1 million panels, equipment purchases will decrease 41 percent.''
Large-size TFT-LCD panel growth in 2009 will be buoyed by LCD TV and notebook sales. For 2009, 113.3 million panels will be sold for LCD TVs, up 20.5 percent from 94.0 million in 2008, according to the firm.
Panels for notebooks will grow slightly faster, up 26.6 percent to 177.0 million panels. Panels for monitors will decrease 17.0 percent in 2009 to 144.9 million units, according to the firm.
The overall semiconductor equipment sector will fall by a staggering 41 percent in 2009 over 2008, according to The Information Network.
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