Inventory concerns impact on LCD photomask market
"Driving the photomask market are a generation-shift to bigger glass plates and a design-rule cycle of panel technology that changes every 12 months," notes Dr. Robert N. Castellano, President of The Information Network. "Right now there seems to be a surplus of panels and excess production capacity for photomasks relative to demand. The downward pressure on prices should continue through this year."
Hoya led the worldwide TFT-LCD photomask market with a share of 40%. We expect Hoya will continue to be a price-setter for rapidly growing LCD photomasks for large-sized panels. But Hoya has been hit by falling prices of photomasks, reflecting weaker-than-expected demand for LCD panels and tough competition with rivals including photomask maker SK-Electronics Co., according to the report.The TFT-LCD photomask market is pegged to grow at a compound annual growth rate (CAGR) of 25% between 2003 and 2010 in terms of area of photomasks. Unit shipments will exhibit a CAGR of only 15% in this time frame because of the meteoric rise in 8th Generation photomask production of 115% between 2007 and 2010.
"We project that the oversupply situation in LCD panels, which averaged 6% in 2005, to double to more than 13% in 2006," added Dr. Castellano.