Disappointed LCD TV sales result during Chinese Lunar New Year caused slight oversupply in panels, resulting in a price adjustment

The global economy has been slow in 2011 due to the European debt crisis, earthquake in Japan, and the slowdown of economic growth in China. The wait-and-see attitude has caused a declined demand, resulting in a conservative attitude from the downstream venders regarding stoking up inventory. The debt crisis will remain in focus for the Greek political leaders haven’t reached the consensus with EU on financial reform and austerity program; therefore, the possibility for EU to offer the 2nd bailout to Greece on 2/12 evening Taipei zone remains uncertain. Meanwhile, the persistent US deficit is also a global issue.

The LCD TV sales performance during Chinese Lunar New Year missed the market expectation with a slight decreased YoY of 2%, which may weaken the panel shipment momentum by May 1 Labor Holiday. Although the demand is entering the off season, yet