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According to CIBC World Markets, Equity Research, the
Flat Panel Display (FPD) industry has achieved sufficient
critical mass for its growth to explode. Thus, it can now
attract the right blend of capital investments and R&D
resources to drive technical innovation toward continuous
improvement in view quality, manufacturing efficiency,
and system integration. These in turn are sustaining
consumer interest, penetration, revenue growth, and the
potential for increasing long-term profitability for industry
participants. CIBC believes that three essential conditions
are now converging to drive the market forward. They are:
•The technological and commercial readiness of FPDs
•Substantial capacity investment
•Lower end-selling prices
Competition in the display industry will intensify due to
innovations and technological breakthroughs. Dataquest
estimates that about 7 million flat panel TVs were
produced in 2002. Production will exceed 8 million in 2003
and is expected to reach 13 million in 2007, with Japan and
AsiaPac being the major production bases. LCD TV
production in AsiaPac has surpassed that in Japan, and
plasma TV production will also be relocated to there for
cost reduction. |
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