LCD Materials' Sales Growth to Slow, Researcher Says

Worldwide sales of materials used to make liquid-crystal displays will slow this year after makers of the panels scaled back expansion plans last year, researcher DisplaySearch said.

Sales of the components used in making LCDs, such as backlights and glass substrates, will rise 6 percent this year to $54.9 billion after climbing 20 percent last year to $51.5 billion, Austin, Texas-based DisplaySearch said in a statement dated yesterday.

Samsung Electronics Co. (005930) and LG.Philips LCD Co. (034220), the world's two largest LCD makers, posted record earnings from displays last quarter after their reduction in capital spending helped turn an industry glut to a shortage.

Growth in sales of backlights and driver chips will probably stall this year, the researcher said. Backlights, which illuminate the screens, are mostly made by Taiwanese companies such as Wellypower Optronics Corp. (3080), the island's largest supplier.

To contact the reporter on this story: Tim Culpan in Taipei at tculpan1@bloomberg.net.

To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net.

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