LCD shortage may be possible later in the year

By Tom Stundza -- Purchasing, 1/2/2008 6:53:00 PM

Booming demand for televisions with thin, flat liquid crystal display (LCD) devices could trigger a global shortage of LCDs this year, forecasts Taiwan's AU Optronics, the world's No.3 maker. A Reuters News Service story quotes an unidentified AU official saying that “supply is seen to grow by 22% to 25%, but demand is seen growing by 28% to 30%.” AU supplies LCD panels for personal computer use to Dell and Hewlett-Packard, and has plans to build a next-generation LCD plant by the end of the year. There have been some fears expressed by some analysts of a pending LCD supply glut because of new capacity planned by Samsung Electronics and LG Electronics. But such LCD-TV producers as Taiwan's Amtran say LCD shortages in the second half of the year are more likely.

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