Overall demand for TFT-LCD panel makers in 2011 is expected to be good, panel makers in the first half of 2011 are expected to benefit from the fact that inventory levels were adjusted, utilization rates were lowered, and panel prices dropped to cost levels in the second half of 2010, and on top of that, the acceptance for LED-backlit LCD TVs in the market will be even higher, which will further help to stimulate demand in 2011.

Prices for the three major applications of LCD panels have dropped significantly, the prices for IT (notebook and monitor) panels have already dropped to cost levels, while the prices for TV panels are also approaching cost. However, according to previous experience, overall panel demand will reach the bottom when panel makers start to lower utilization rates to limited further the possibility of price drops.

Observers at Morgan Stanley believe that system-end demand in 2011 will grow by 20% on year, while overall panel production capacity will only grow by 14%, and under the circumstances, panel demand will see strong growth in 2011.

Moreover, with LED-backlit TV panels becoming mainstream, it will help to further drive the sales of LCD TVs in 2011. Market sources estimated that LCD TV shipments will reach 180 million units in 2010, 205 million units in 2011 and 223 million units in 2012 with on-year growth of 24%, 14% and 9%, respectively.