[Asia Economy Reporter Jeong Hyunjin] The global display manufacturing equipment industry recorded its highest-ever sales in the second quarter of this year due to the semiconductor shortage and expanded facility investments.
According to the display market research firm DSCC on the 19th, the total sales of 36 major display equipment suppliers in the second quarter amounted to $24.8 billion (approximately 29.2 trillion KRW), marking an all-time high. This represents a 4% increase from the previous quarter and a 34% increase compared to the same period last year. The companies surveyed by DSCC include Applied Materials, AP Systems, and others that manufacture semiconductor equipment alongside display equipment.
Looking specifically at the display equipment-related sales of these companies, they recorded $2.8 billion, which is a 1% increase from the first quarter and a 60% increase from the second quarter of last year. Investment in equipment by display companies was $5.6 billion, up 72% from the second quarter of last year. DSCC explained that the sales scale of these 36 companies accounts for 41% of the display industry's capital expenditures (Capex) and represents half of the total equipment-related consumption.
DSCC stated, "The lead time for equipment (the period from order to delivery) has lengthened due to the semiconductor shortage, and equipment orders have significantly increased." In fact, among display equipment manufacturers, the equipment reservation volume of 20 companies that responded to DSCC's survey increased by 23% from the previous quarter and 124% from the same period last year, driven by expanded new facility investments.
Recently, DSCC reported that the capital intensity of the display industry has continuously declined as panel prices rose due to supply and demand issues among panel suppliers. Taiwan's AUO had a capital intensity of only 3% in the second quarter of this year, while Samsung Display recorded 9%, and LG Display 13%. Chinese companies showed capital intensities ranging from 17% to 82%. DSCC forecasted that as display prices fall and sales rise, expanded facility investments for new technology development will continue, leading to a rebound in capital intensity.
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