Canon problems signal early end to LCD price drops
Falling prices of LCD monitors are now expected to bottom out earlier than previously thought
Canon said on Thursday it had found problems with equipment for making liquid crystal displays (LCDs), boosting shares in Philips and other LCD makers as fears of a supply glut eased.
Any shortage of equipment for making LCDs could slow the start of new factories already under construction, easing a surplus of supplies.
Shares in Philips, the world's number two maker of LCDs, jumped 3.9 percent after Merrill Lynch said Canon was having technical problems with new steppers, critical machinery for making LCDs.
"Things are looking good for Philips. The problems in stepper production at Canon are going to increase prices," said Park Kum-yung, a fund manager at Mirae Asset Co. "That's not necessarily just a short-term increase, because there's a perception that panel prices will be bottoming out earlier than what the market had forecast." more...
