TFT-LCD photomask market revenue jumps in 2008

NEW TRIPOLI, USA: LG Micron vaulted to the lead on the heals of LG Display’s growth, according to the report: The TFT-LCD Photomask Market, recently published by The Information Network.

LG Micron took the lead in the market with a 29.3 percent share, dethroning perennial leader Hoya in 2008. LG Micron supplies photomasks to LG Display, also part of the LG Group. Photronics’ market share for CY2008 increased to 18.5 percent from a 16.5 percent share the year earlier. It is interesting to note that Photronics is a US-based company and there is practically no LCD industry in the US.

Revenues for 2008 grew 16.4 percent while unit shipments increased 4.1 percent. The high growth is attributed to the higher prices of photomasks for 8th generation TFT-LCD plants.

“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.”

Demand for LCD panels was weak throughout the fourth quarter 2008 as panel manufacturers significantly curtailed output and overseas panel manufacturers reduced, postponed or cancelled plans for new manufacturing lines. These severe conditions continued during the first quarter 2009. Although plant utilization rates at panel manufacturers in Taiwan and South Korea recovered gradually demand has still not recovered completely.

The photomask industry also is experiencing sluggish demand for all photomasks, including photomasks for new lines, mass production and development, and intensified competition has resulted in significant unit price reductions.

Faced with these difficult circumstances, The Information Network is forecasting unit shipments to decrease 15.5 percent in 2009.