Figure I: Taiwanese Large-area TFT-LCD Panel Shipment Volume, 4Q 2011 - 2Q 2014 (Source: MIC, February 2014)

According to MIC (Market Intelligence & Consulting Institute), shipment volume of the Taiwanese large-area TFT-LCD panels totaled 55.2 million units in the fourth quarter of 2013, up 2.3% sequentially but down 10.6% year on year. Breakdown by application reveals that notebook PC maintained the highest share, at 34.5%, followed by LCD TV (32.8%) and LCD monitor (30.6%). LCD TV panels registered the strongest sequential growth of 9%, mainly due to Chinese branded vendors' inventory replenishment ahead of the Chinese Lunar New Year holidays. However, LCD TV panel shipments declined 12.4% year on year, for the baseline period in 2012 was driven up by China's subsidy policies for energy-saving home appliances. LCD monitor panels saw only modest demand from branded vendors since the market remained sluggish. Besides, panel manufacturers tended to produce LCD monitor panels on actual demands in order to reserve capacity for other application products. Consequently, shipment volume of LCD monitor panels fell 3.8% sequentially in the fourth quarter. As for notebook PC panels, shipment volume inched up 1.8% sequentially as a result of the nearly flat demand against last quarter.