Taiwan’s revenue share of the global large-sized (over-10-inch) thin film transistor-liquid crystal display (TFT-LCD) market rose to 41.8% in the second quarter of the year, making the island the second-largest production nation of such product trailing South Korea’s 48.7% share, according to Industrial Development Bureau (IDB) of the Ministry of Economic Affairs.

IDB forecasted that Taiwan’s revenue share of the global large-sized TFT-LCD market is expected to further grow to 43% in the fourth quarter, further shortening the gap with South Korea, forecasted to reach 46.7%.

In terms of shipments, IDB pointed out, Taiwan exceeded South Korea in the first three quarters of 2008. In the fourth quarter of last year, however, the island’s shipment share fell to 38.4% due to the global financial tsunami, while Korea’s share rose significantly to 49.2%.

IDB officials explained that after the financial turmoil, Korean panel makers stopped outsourcing panels to Taiwanese counterparts, while the sharp depreciation of the Korean currency won against the U.S. greenback served to boost the competitiveness of Korean-made panels. In conjunction with the recovering global economy, orders flow back to Taiwan and the market share gap has narrowed.

To secure a vivid development of local flat panel display (FPD) industry in Taiwan, IDB officials said, the bureau will propose a five-year, NT$2 billion (US$61.5 million at US$1: NT$32.5) subsidy program for local e-paper and thin-film solar-cell panel sectors.

In the first half of 2009, IDB said, the production value of local FPD industry (including both panels and key parts) was about NT$566.9 billion (US$17.44 billion), and the annual output value is expected to outstrip NT$1 trillion (US$30.77 billion) again. The local content rate of FPD key parts has increased to 92% in the first half, IDB said.