Global shipments of LCD TV panels are expected to shrink 10 percent sequentially this month from 22.09 million units last month, snapping eight consecutive months of strong demand, on seasonal weak demand, market researcher TrendForce Corp (集邦科技) said yesterday in a report.
That would bring global shipments of PC and TV panels down 6.6 percent this month from 67.97 million units in the prior month, when demand beat seasonal patterns, TrendForce said.
“A rebound may occur in March at the earliest after some [TV] brands launch new models,” TrendForce analyst Winnie Chen (陳若榆) said in the report.
GLOBAL CLIENTS
Avoiding the downtrend hobbling the wider industry, Innolux Corp (群創), the nation’s biggest LCD panelmaker, might see strong growth in its TV panel shipments extend into the next few months — to May at least — after clinching new orders from the Mexican government, the Taipei-based research house said.
That has helped Innolux’s shipments of 23.6-inch TV panels grow by a double-digit percentage to 1.8 million units, Trend Force said.
“That means Innolux may have to continue fully utilizing its 8.5-generation [8G] factory,” Chen said.
Innolux, which operates an 8.5G plant in central Taiwan, said early this month that it planned to add a new production line to meet demand for its TV panels.
INNOLUX SPENDING
To boost its capacity, the panelmaker budgeted NT$3.5 billion (US$111.32 million) for capital spending this year, up from last year’s NT$2.53 billion.
Last month, Innolux and South Korean panelmaker LG Display Co were the only two panel manufacturers that experienced sequential growth in TV panel shipments, up 1.4 percent and 7.7 percent respectively, TrendForce reported.
LG Display’s growth was supported primarily by robust demand for its 32-inch, 43-inch and 50-inch TV panels, as Chinese TV brands build inventory for expected Labor Day holiday shopping in May, the researcher said.
TrendForce also said that prices for 32-inch TV panels could start to fall after sustaining a strong level last year, given that Chinese and South Korean panelmakers are boosting their production capacity for 32-inch panels significantly this year to increase profits and maximize factory utilization.
Last month, shipments of 32-inch TV panels expanded 2 percent from the previous month, the researcher said.
OVERSUPPLY?
“If they continue to increase the supply of 32-inch TV panels, it will be inevitable that the market sees a supply glut,” Chen said.
Innolux shares dropped 0.62 percent to NT$16.15 yesterday in Taipei trading, underperforming the TAIEX, which gained 0.73 percent.
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