TFT LCD Panel Price Increases Halt, Demand Uncertain
SANTA CLARA, CA – Large-area TFT LCD panel price increases halted in mid-June, as a result of an uncertain demand outlook for the third quarter, says DisplaySearch.
While demand is slowing, especially in the TV market, the supply side is making adjustments to prevent drastic panel price fluctuations. Panel makers originally expected to raise capacity utilization – the ratio of actual output to total available capacity – to an average of 90% in the third quarter. However, TFT LCD capacity utilization will remain at 85% from July to September, says the research firm.
Average large-area TFT LCD capacity utilization fell in the first quarter. After reaching 79% in April, panel makers increased rates through the second quarter to meet a surge in demand, and by June the rate had reached 85%. Panel makers were planning to increase capacity utilization in the third quarter, but this has changed in response to market conditions, the firm says.
Although panel makers are anticipating increasing demand from China TV brands, together with the emergence of some seasonal demand in the third quarter, overall fab utilization will not increase, according to DisplaySearch.
In June, overall LCD TV panel shipment targets increased 6% sequentially, but were still 7% less than the previous forecast due to order adjustments from TV brands.
The inventory level at the end of June for LCD TV panels was seven to eight days, with monitor panels at seven days, and mobile PC panels at six days.
In May, panel makers’ shipments to China TV makers were 4.24 million, up 8% sequentially, exceeding a previous DisplaySearch forecast by 7%. Shipments are projected to be 4.37 million in June, up 3% sequentially.
