LCDs In Taiwan: Falling Prices Could Erode Market Share Growth

A surge of investment will boost Taiwan's share of the world market for liquid crystal display (LCD) screens used in notebook computers from 3% in 1999 to more than 20% this year according to industry analysts. But they predict that high profits will evaporate as new entrants to the LCD market arrive at the end of 2000. Price falls could be as much as 20%, wiping out the value of Taiwan's growing market share. The Asian island's screen makers are taking defensive action through mergers. But Taiwan faces a serious challenge from Japan, which is reluctant to share its more advanced LCD technology, preferring to monopolize it for its own new generation of screens.