Chi Mei Optoelectronics Corp (CMO, 奇美電子), the country’s second-largest supplier of liquid-crystal-display (LCD) panels, could extend a production cut plan into next month as dwindling demand drives prices down further.
The Tainan-based company told investors in July it would lower equipment loading by 20 percent last month and by another 15 percent this month as customers pile up excessive inventory after demand dipped unexpectedly, leading to a drastic decline in prices.
“The likelihood of resuming full loading of equipment is slim,” CMO spokesman Denis Chen (陳世賢) said by telephone.
The remarks came after LG Display Co Ltd trimmed its third-quarter outlook yesterday on weaker-than-expected demand. The price of LCD panels has dropped faster than expected because of the sluggish global economy, LG Display said.
Shipments by area could increase about 15 percent this quarter from the second quarter, rather than in the low twenties as estimated early July, a company statement said.
The average selling price per square meter could decline by a high teen percentage quarter-on-quarter, compared with a drop in the low teens as previously forecast, the South Korean company said.
Early this month, LG Display, the world’s second-largest LCD maker, said it would extend a reduction in flat-panel production, citing uncertain recovery in demand.
As TV and PC makers continue to digest inventory, the price for computer panels could drop by 5 percent to 8 percent this month from the previous month, Taipei-based market researcher WitsView said yesterday.
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