Taiwan's booming LCD industry could generate $13.3bn in sales for the island's manufacturers in the three months from July to September, according to government-funded statistics.

The greater part of the sales will come from completed flat-panel displays, but Taiwan is also a major producer of key LCD components such as colour filters and glass substrate.

Flat-panel production value in Taiwan will rise almost 10 per cent compared to the second quarter of the year, the government-sponsored Industrial Economics and Knowledge Center predicted.

Monthly production value will increase sharply, from an average of $3.6bn a month over the first half of the year, to over $4.4bn in the current quarter, the researchers believe.

If current trends continue, the forecasters expect Taiwan's flat-panel display industry to generate more than $50bn this year, a increase of 30 per cent compared to 2006.

The LCD industry has long been characterised by cut-throat competition and plummeting prices.

However, prices of most TV panels have stabilised in recent months, while prices of LCDs for other uses, such as PC monitors, have actually risen slightly as demand exceeds supply.

Local manufacturers have been able to raise prices for large display panels over the past four months, IEK Center researchers told local media in a statement.

However, supply and demand are expected to gradually come back into balance during the third quarter.