Although the article in MyEGov suggests that S-LCD’s (Samsung and Sony’s joint venture) G8 project is the only G8 on schedule, Sharp is not only on schedule but will be the first to finish and start mass production of a G8 fab by the fourth quarter of this year.
But as the title suggests, CMO and AUO have, for different reasons, delayed their G8 fab build schedules. CMO recently started building a G8 fab but slowed down the construction according to the Southern Taiwan Science Park director general.
Not all Korean suppliers are on target for G8 builds: LG.Philips LCD, with its dismal Q2 financial results, has delayed its G8 construction and will be focused on building a G5.5 that will be more versatile in building notebook and monitor panels.
Overall, fab capacities will not grow as fast as expected but will slow down. In turn, at least in the US, third and fourth quarter demand will be much higher than the first half of the year and will pose some problems: less supply but more demand. This is exactly what the LCD suppliers want, a shortage, as prices will start to stabilize and climb back up toward a point where the manufacturers will be enjoying larger profit margins. At the end, because monitor, TV and notebook manufacturers will need to keep their margins too, overall set prices will increase: not good for us consumers. So, buy your display gear now because it won’t be this cheap for too long.