Local liquid-crystal-display (LCD) panel makers may see their computer and TV panel revenues rebound 8 percent after major panel suppliers, including AU Optronics Corp (AUO, 友達光電), cut their output as a global economic slowdown hurt demand, a local institute forecast yesterday.
Revenues for Taiwanese flat-panel makers may rise to NT$304.11 billion (US$9.69 billion) in the third quarter, from NT$281.59 billion in the second quarter, the Hsinchu-based Industrial Technology Research Institute (ITRI, 工研院) projected.
The forecast does not include sales from smaller-sized LCD screens for consumer electronics such as DVD players and low-cost laptops.
“Large-scale reductions in production and back-to-school demand for computers may help lift the sales of PC panels in the third quarter,” ITRI analyst Nancy Liu (劉美君) said in a report released yesterday.
EQUIPMENT LOADING
AU Optronics, the nation’s top LCD panel supplier, plans to lower equipment loading by 10 percentage points to 90 percent this quarter, from 100 percent last quarter, while Chi Mei Optoelectronics Corp (CMO, 奇美電子) planned to reduce utilization by 15 percentage points.
Despite the planned production cuts, third-quarter revenues are expected to drop 2.7 percent from a year ago, the institue said.
“Price drop pressure is still in place and shipments are falling,” Liu said.
DROP IN PRICE
AU Optronics told investors last month that prices for PC panels may drop an additional 15 percent this quarter from US$110 per unit last quarter, while prices for TV panels may drop another 5 percent from US$356 apiece.
As of the end of the second quarter, there were still no clear signs pointing to a bottom in terms of price declines for benchmark PC and TV panels, Liu said.
Prices plunged as demand weakened because of a global economic slowdown and an increase in inventory, she said.
Shares of AU Optronics and CMO have plunged 31 percent and 36 percent to NT$36.35 and NT$25.6 respectively since the second quarter, when panel prices began to dip amid falling demand.
During the quarter ending June 30, local flat panel suppliers posted a 4.1 percent quarter-on-quarter drop to NT$281.59 billion in revenues from PC and TV LCD panels, statistics compiled by ITRI showed.
However, revenues were up 15 percent year-on-year.
REVENUES
Revenues from smaller-sized LCD panels largely used in consumer electronics are expected to grow almost 16 percent quarter-on-quarter, or up 12 percent year-on-year, to NT$38.31 billion in the third quarter, ITRI’s forecast showed.
New orders from Chinese mobile phone makers and expanding demand for low-cost notebook computers are expected to be the main drivers, the institute said.
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