Supply of flat panels used in TVs would remain constrained into next year as manufactures are allocating new capacity to produce panels used in monitors, laptops or ultra-large TVs, market researcher TrendForce Corp (集邦科技) said yesterday.
The Taipei-based researcher found in a survey that China Star Optoelectronics Technology Co (華星光電) and HKC Optoelectronics Technology Co (惠科金渝光電) plan to add two new production lines next year, but they are shifting their new capacity to information technology products and ultra-large TV panels, instead of regular TV panels.
Meanwhile, Samsung Display Co plans to shut down its South Korean production lines in December, TrendForce said.
As a result, overall TV panel shipments would shrink 4.1 percent year-on-year to 256.64 million units next year, it said.
The average size of TV screens is also expected to increase to 50 inches (127cm) next year from 48.7 inches (123.7cm) this year, which would narrow the gap between TV panel supply and demand, TrendForce said, adding that supply would surpass demand by 20 percent next year, compared with 24 percent this year.
The prices of TV panels have started to increase since July and have not shown signs of waning, boosting shares of AU Optronics Corp (友達光電) and Innolux Corp (群創) by 19.72 percent and 18 percent respectively since then.
The persistent supply crunch would boost TV panel prices by 10 percent sequentially in the fourth quarter, following a hike of 30 percent in the third quarter, TrendForce said.
The researcher attributed TV panel scarcity to slower expansion of new capacity and shifts in capacity to flat panels used in monitors and notebook computers.
An increase in seasonal demand was also compounding the supply issue, it added.
This year, shipments of TV panels would fall 6.2 percent year-on-year to 267.53 million units, TrendForce said.
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