Market Trend

From May 19, 2008 to May 30, 2008, the MCI index fell slightly by 49.0 points, dropping from 8378.3 to 8329.3. The small changes in the index shows that there is still some reservations regarding the future development of the TFT LCD industry amid the seasonal weakness. With the index still at a relatively high level, the general outlook remains upbeat. However, the uncertainty in the global economy and sluggish TV end market sales are spurring concerns over how things will develop in the next 2 to 3 months.

From another standpoint, Q2 is traditionally the slow season in the TFT LCD market. Thus, it is natural for the TV panels demand to be weak. This holds true for the IT segment, as well. But given the earlier than usual inventory pull in Q1, due to anticipation of panel prices rising again in Q2, instead of a strong end market demand, the current panel and end product inventory is quite sufficient. Coupled by the fact that June marks the quarterly end for the panel makers, they are expected to find ways in sustaining their sales. On the contrary, downstream customers are also controlling their inventory. Thus, for June, the MCI index is expected to drop to a lower level in June.