An oversupply of TFT-LCD panels will slow photomask sales to 13% growth in 2006, according to The Information Network. Hoya led the worldwide TFT-LCD photomask market with a share of 40%. We expect Hoya will continue to be a price-setter for rapidly growing LCD photomasks for large-sized panels. But Hoya has been hit by falling prices of photomasks, reflecting weaker-than-expected demand for LCD panels and tough competition with rivals including photomask maker SK-Electronics. The TFT-LCD photomask market is pegged to grow at a compound annual growth rate (CAGR) of 25% between 2003 and 2010 in terms of area of photomasks. Unit shipments will exhibit a CAGR of only 15% in this time frame because of the meteoric rise in 8th Generation photomask production of 115% between 2007 and 2010.