Panel makers' development projects for international handset vendors unaffected by economic downturn

Although international handset vendors such as Nokia, LG Electronics (LGE) and Samsung Electronics have trimmed their handset shipment forecasts for the fourth quarter, small- to medium-size LCD panel makers' product development projects for these handset clients for 2009 remain unaffected, according to market sources.

Small- to medium-size LCD panel makers were cited as explaining that it is normal for handset vendors to adjust shipment forecasts when sales are weaker than expected. But panel deals for handset development projects are usually made a year before the planned product launches, and they are less likely to be affected by short-term shipment adjustments, the market sources noted.

Some Taiwan small- to medium-size LCD panel makers have entered the supply chain for first-tier handset vendors, with TPO Display supplying high-end panels for Nokia's smartphones in 2009, and Giantplus Technology shipping to both LGE and Samsung in 2009, the sources added.