LCD TV market looking up

Stabilizing liquid crystal display (LCD) panel prices will help fuel an improved market for suppliers of components used in LCD TVs starting late in the third quarter, EE Times reports from a study by Wedbush Morgan Securities.

The note reiterated data from a recent DisplaySearch conference projecting a strong rebound in production and shipments of LCD components the second half of 2006. 2006 year LCD TV shipments will exceed an industry consensus forecast of 42 million units to reach almost 47 million, Wedbush projected.

The firm expects IC suppliers like Trident Microsystems and Genesis, which develops advanced semiconductors for flat-panel TVs, to benefit from increased orders and shipments.

Wedbush also reported that while LCD TV prices continue to decline, monitor panel prices rose slightly the first half of August. As panel prices stabilize, OEMs are likely to place new orders for panels and LCD TV components. Suppliers should also benefit from depleting inventories that need replenishing, the report said.

The report is good news to LCD panel suppliers, several of which have scaled back production plans and lowered guidance in response to rapidly falling prices, sinking profits, and rising inventories.