Efficient manufacturing cuts LCD production cost in half

San Jose (CA) - Market research firm Displaysearch expects manufacturing costs for LCD panels to drop by 62 percent in the next four years. Count in the natural price erosion in the industry and $100 17" displays suddenly appear on the horizon.

After experiencing a rocky second half of 2004, the global LCD is again steering into a time of recovery. Unlike in the past, the new growth will be driven through cost reduction made possible due to the enormous investments panel makers made in the past years and surfacing depreciation effects. According to Displaysearch analyst Jin Kim, manufacturers are also taking advantage of higher yields in their newer fabs.

For the long term, the outlook for the industry is substantial growth and consumers can expect further price erosion. According to Kim, 15" panels currently are available for about $100, which could translate into $150 low-end displays in the near future. Four years down the road, 17" models could be available in this price range or even at the $100 mark. "It is too far out to give a reliable forecast. But a $100 17" display by 2008 is quite possible," Kim said.

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Wolfgang Gruener
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Wolfgang Gruener is an experienced professional in digital strategy and content, specializing in web strategy, content architecture, user experience, and applying AI in content operations within the insurtech industry. His previous roles include Director, Digital Strategy and Content Experience at American Eagle, Managing Editor at TG Daily, and contributing to publications like Tom's Guide and Tom's Hardware.