Wave Issue 0200 1/4/02 Article 5-01

***DisplaySearch Report Indicates Worldwide LCD Monitor Shipments
Rise 45% Q/Q and 143% in Q3'01
(December 21)

DisplaySearch, a FPD market research and consulting company,
revealed in its latest Quarterly Desktop Monitor Shipment and
Forecast Report that Q3'01 worldwide LCD monitor shipments
increased at a record quarter-over-quarter (Q/Q) growth rate of
45% with year-over-year (Y/Y) growth at 143%, resulting in record
high unit shipments of 4.13 million units, 4% higher than
expectations.

Contributing to the quarter were record 21% Q/Q reductions in
average selling prices (ASPs), resulting in price points that
caused shipments to exceed expectations in North America, Europe
and the rest of the world (ROW), while Japan declined more than
anticipated. By size, growth exceeded expectations at 15", 15.3"
- 16" and 17", and fell below expectations at all other sizes.

Due to price erosion, LCD monitor revenues grew slower than unit
shipments at 15% Q/Q and 39% Y/Y to $2.725 billion. While LCD
monitor shipments soared, CRT monitor shipments fell 12% Q/Q and
21% Y/Y to 19.1 million units. CRT monitor revenues fell 14% Q/Q
and 22% Y/Y to $5.2 billion. As a result, LCD monitor penetration
of the desktop monitor market jumped to 18% on a unit basis and
34% on a revenue basis.

While LCD monitor ASPs fell 21% Q/Q in Q3'01, leading to 45% Q/Q
growth, ASPs are expected to decline an additional 12% in Q4'01,
resulting in 48% Q/Q and 214% Y/Y growth to 6.1 million units
worldwide. With CRT monitors expected to decline an additional 5%
in Q4'01, LCD monitor penetration could reach 25% on a unit basis
and 42% on a revenue basis.

Regionally, Europe and North America overtook Japan to become the
leading regions for LCD monitor shipments in Q3'01, as predicted
last quarter. While Japan's share of the LCD monitor market fell
from 36% to 22%, North America's and Europe's shares rose from
27% each in Q2'01, to 31% and 32% respectively, in Q3'01. In
Q4'01, Europe is expected to lead with a 32.5% to 32.4% advantage
while Japan's share is expected to fall further to 21.8%. The
impact of September 11th could be seen by the surge in 18" LCD
monitor shipments in North America, which jumped 71% Q/Q due to
replacement demand from the New York financial community.

LCD monitor suppliers focused on North America and Europe tended
to rise in the supplier rankings in Q3'01, while those focused
primarily on Japan declined. Samsung jumped from #3 to #1 on 85%
Q/Q and 212% Y/Y unit growth, boosting its share from 7.0% to
8.9%. It was #1 in the 15" LCD monitor market, which accounted
for 78% of the total market, with a 9.5% share and was #2 at 17",
which accounted for a 12% share. Samsung remained #1 in Europe,
#2 in ROW and rose from #5 to #4 in North America. More than 40%
of its shipments went to Europe in Q3'01.

After one quarter at #1 on a unit basis, NEC-Mitsubishi fell to
#2 on 27% Q/Q and 81% Y/Y unit growth, causing its share to fall
from 8.6% to 7.5%. NEC-Mitsubishi remained #1 on a revenue basis
with a 9.7% share and was #1 in North America for the first time
this year, overtaking Dell. More than half of NEC-Mitsubishi's
shipments went to North America in Q3'01. By size, it was #1 at
18", #2 at 15" and >20" and #4 at 17".

Dell rose from #4 to #3 on a unit basis in Q3'01 on 41% Q/Q and
225% Y/Y unit growth, with its unit share falling from 6.7% to
6.6%. By size, it remained #1 at 17" with a 20% share and rose
from #6 to #3 at 15". Dell widened its advantage as a bundled
supplier with a 21.5% share vs. 17% for the next closest
supplier. The company fell to #2 in North America and from #4 to
#6 in Europe. 60% of its shipments went to North America.

Fujitsu fell to #4 in Q3'01 on a 4% Q/Q decline and 39% Y/Y
increase. Its market share fell from 7.2% in Q2'01 to 4.8% in
Q3'01. The company remained #2 in Japan and rose from #6 to #5 in
Europe. By size, Fujitsu fell from #2 to #4 at 15" and from #2 to
#8 at 17".

Sony remained #5 worldwide on 2% Q/Q and 79% Y/Y growth. By
region, it remained #3 in Japan, rose from #6 to #5 in North
America and fell out of the top ten in Europe. By size, Sony fell
from #3 to #7 at 15", rose from #5 to #3 in the 15.3" - 16"
segment and jumped from #3 to #2 at 18.1".

NEC Corporation, which led the LCD monitor market for most of
1999 and 2000, fell out of the top ten to #14 in Q3'01 due to the
softness in the Japanese market and lack of presence in North
America and Europe. NEC remained #1 in Japan, however, with a 12%
share.

In addition to revealing LCD monitor shipments by region by size
in units and revenues, the report also reveals LCD monitor
shipments by interface type, viewing angle technology,
resolution, video input, channel and application, and forecasts
this information forward on a rolling 8-quarter basis. By
interface type, both analog-only and dual interface shipments
gained share in Q3'01, with analog-only shipments rising 61% Q/Q
to a 68% share, up from 61%, and dual interface shipments rising
59% Q/Q to a 20% share, up from 18%. Digital-only LCD monitor
shipments fell 16% due to weakness in Japan, causing its share to
fall from 21% to 12%.

This report also reveals LCD monitor shipments by LCD monitor
OEMs, TFT LCD suppliers and controller IC suppliers. In the case
of LCD monitor OEMs, Samsung remained dominant with a 14.2%
share, up from 13%, on 56% Q/Q growth. Samsung's share remained
more than twice as high as the #2 player. The company remained
the top OEM at 15" with a 13.2% share and the top OEM at 17" with
a 30.1% share. LG Electronics rose from #6 to #2 on 94% growth to
a 6.7% share, while Acer Communications and Multimedia (ACM)
enjoyed the fastest Q/Q growth of any of the top ten OEMs at 99%,
boosting its market share from 4.8% to 6.7% and causing its
ranking to rise from #7 to #3.

By region, Taiwan OEMs led with a 59% share, up from 48%, on 73%
Q/Q growth. Korean OEMs passed Japan for the first time, as
predicted, on 55% growth and a 23% share, up from 21%.

In the case of controller IC suppliers, Genesis Microchip
remained dominant in Q3'01 with a 58% market share, up from 47%.
No other supplier had more than a 10% share. Sage, which Genesis
will acquire in early 2002, had an 8.8% share, followed by
SmartASIC at 8.2%. The controller IC market rose 37% Q/Q in Q3'01
on a revenue basis to $55 million and is expected to rise 24% Q/Q
in Q4'01 to $68 million.

DisplaySearch's 300-page Quarterly Desktop Monitor Shipment and
Forecast Report is available in English and Japanese in printed
and electronic format.

www.displaysearch.com/usfpd.html