This excerpt taken from the LPL 6-K filed Nov 6, 2009.
(2) Cyclicality
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The TFT-LCD business is highly cyclical. In spite of the increase in demand for products, this industry has experienced periodic volatility caused by
imbalances between demand and supply due to capacity expansion within the industry.
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Intense competition and expectations of demand growth may lead panel manufacturers to invest in manufacturing capacity on similar schedules, resulting
in a surge in capacity when production is ramped up at new fabrication facilities.
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During such surges in capacity growth, the average selling prices of display panels may decline. Conversely, demand surges and fluctuations in the
supply chain may lead to price increases.
