Prices for liquid crystal displays (LCDs) are rebounding in the second half of 2007 on strong demand, after a long steady price decline in late 2006 and early 2007.

"Following weak pricing conditions in the fourth quarter of 2006 and in the first quarter of 2007, the large-sized LCD panel market entered into a robust recovery in the second quarter and strong conditions are persisting in the third quarter," says Sweta Dash, director, LCD and projection research for iSuppli.

She says panel demand is rising from all three major markets for such panels: televisions, desktop monitors and notebook PCs. Meanwhile, inventories remain under control. This combination of rising demand and constrained supply is causing overall panel prices to increase.

Dash adds that in the coming years, demand for LCDs will be driven by increased adoption of LCD-TVs among the world's consumer. "Growth will arise from consumers shifting to bigger LCD-TVs, especially to 40/42-inch, and even larger sizes."

Global revenue for large-sized liquid crystal displays will increase 22% to $66 billion in 2007 because of rising demand, tighter supply and rising prices, according to market researcher iSuppli. Large-size LCDs measure 10 inches or more diagonal.

In 2007, worldwide shipments are forecast to reach 353.8 million units, up 25.2% from 282.5 million units in 2006.

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