Taipei: according to iSuppli Corp, a market research firm, the demand for LCD TVs will most likely go through the roof as people across the world upgrade their television sets to watch the 2008 Beijing Olympics games.

Research by iSuppli indicates that 2008 will see global shipments of LCD TV panels rise to 102.5 million units, up by 27 per cent from the previous year. Other demand drivers for LCD TV sales are likely to be factors like falling prices, performance improvements and national transitions to high quality digital TV broadcasting.

The market research firm says by end 2008, newer large-sized LCD fabs will commence production, which will most probably result in greater panel output, which could be a boon or a band for LCD panel suppliers, depending on how the Olympics affect demand for LCD TVs.

Cautioning against oversupply, iSuppli said that though the LCD panel output is set to rise, suppliers are likely to face an oversupply situation if estimated sales fall short of the heightened expectations of the industry.

According to the firm, the LCD market is in the midst of a recovery, though it is still dominated by big South Korean players Samsung Electronics and LG, and by Philips LCD of South Korea, and the Taiwan-based AU Optronics Corp and Chi Mei Optoelectronics.