Flat-panel industry is set for a smoother ride during the next few years, with no annual revenue declines until at least 2007, according to market watcher DisplaySearch.

"We are in the beginning of a significant upswing and we expect TFT-LCD suppliers to remain profitable for some time due to the strong demand, increasingly favorable product mix and the fact that costs are coming down significantly," said Ross Young, president of DisplaySearch.

Asia's top panel makers, ranging from Samsung Electronics and LG.Philips to Sharp and AU Optronics, are all expanding, or mulling an expansion in the case of Sharp, to meet increasing demand in higher margin products, such as small panels for mobile phones or large panels for the nascent but fast-growing LCD TV market.

The increasing supply couple with the maturing market in the coming years will eventually lead to price decline and reach a point that the LCD suppliers will find little room to make a profit.

By: DocMemory
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