DisplaySearch Updates TFT LCD Fab Activity, Supply and Demand, TFT LCD Equipment, and Capital Expenditures Forecasts

-DisplaySearch, the worldwide leader in display market research and consulting and part of The NPD Group, reports in its Quarterly TFT LCDSupply/Demand and Capital Spending Report that component supply could not keep up with strong demand in Q3 05, extending a component-restricted shortage in large-area panels. In terms of unrestricted, raw array capacity, supply was sufficient in Q3 05, and by allDisplaySearch metrics, the surplus is expected to continue to widen in Q4 05 and into 2006.According to DisplaySearch Vice President Charles Annis, Demand in the first three quarters of the year proved stronger than expected, which has somewhat bolstered market expectations and improved the outlook for future investments. Fab investments continue to be planned and made in order to position for an upturn expected by panel manufacturers, for first mover advantage, for political motivations, and to increase market share and scale. The TFT LCD equipment spending forecast for 2006 has been revised up to $9.37 billion, almost to the same level as 2005. This significant spending, continuing from 2004, is projected to generate a long term array capacity surplus, warranting a relatively conservative investment outlook for 2007 and beyond.