SANTA CLARA, CA – As the transition to flat panel TV nears completion, TFT LCD TV panel demand is slowing, from 41% year-over-year in 2010 to 8.3% in 2011, says DisplaySearch.

Total TFT LCD panel area demand is expected to increase 10.4% in 2011, resulting in 11% TFT LCD glass area demand growth, accounting for time shifts and production yields, the firm says.

Coming out of a tight supply situation in 2009, TFT LCD glass substrate manufacturers have significantly increased capacity in 2010, with area growth estimated to be 32% year-over-year. DisplaySearch forecasts 13% year-over-year capacity growth in 2011. With panel makers cutting back on utilization, the firm predicts an oversupply situation in the first quarter, with a glut of 12.8%.

From the second quarter of 2009 to the second quarter of 2011, the quarterly area capacity of TFT LCD glass production is expected to increase 42%. The growth will be accomplished with a 15% increase in the number of tanks.