TV panel makers to reduce capacity, less so in China

October 16, 2019 //By Julien Happich
TV panel
According to WitsView, a division of TrendForce, TV panel prices have been generally lower than the cash costs, turning into a money loss for panel makers.

According to the market research company, Korean, Taiwanese and Chinese panel makers all started to lower their utilization rates (UT) of TV panel products from September on, in order to improve the severely unbalanced supply and demand and stabilize the prices.

In this wave of capacity reduction, Korean panel makers decreased their capacities the most among panel makers, notes Anita Wang, senior research manager at TrendForce. In particular, for Samsung Display (SDC), because TV brands' procurement demand has suddenly dropped in 4Q19, SDC has massively moved down its UT of Korean Gen. 7 and Gen. 8.5 fabs in September and October. SDC's Gen. 7 input is even predicted to drop by more than 50% in September and October, and input of its Gen. 8.5 fabs is expected to fall by 30%~40%.

LG Display (LGD) plans to shut down some capacities of Gen. 7.5's Fab P7 and Gen. 8.5's Fab P8. The Fab P8 is projected at only have 25% of capacity by the end of 2019, and its Fab P7 is rumored to shut down one-third of capacity in October.

A Taiwanese panel maker, AUO began to reduce its input in Gen. 8.5's Fab 8A and Gen. 6's Fab 6B. Particularly, the Fab 8A's input is estimated at only 50% remained in 4Q19 primarily because of the 55" panel prices and bad demand. Its Fab 6B is predicted to reduce by 20% of input in 4Q19 because it moved down the input of 65".


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