The status of key components of TFT LCD panels is hard, Not only is the supply of driver ICs still tight, but also the large glass substrate manufacturers such as Asahi Glass, Electric Glass, Corning and other large glass substrate manufacturers have successively experienced equipment failures and other accidents.
In addition, customers in downstream channels are expected to increase prices and increase inventory. As a result, LCD panel quotations have continued to rise recently. Following the continuous increase in quotations in January and February, it is expected that quotations in March and April after the lunar new year will still be supported.
Originally, the outside world was worried that the major Korean panel makers have postponed their LCD panel reduction/stop production plans, coupled with China’s 8.6-generation and 10.5-generation new production capacity resumed production, the utilization rate of new production lines has gradually increased, which may increase the supply of LCD panels in the second half of the year. , Which in turn affects the trend of panel quotations after the Lunar New Year.
However, the recent situation of key components of the panel has spread frequently, leading to the continued strong force of panel price increases. On the one hand, the supply of driver ICs such as Tcon and PMIC is still tight, and it is estimated that it may take more than one season before the shortage can be alleviated.
On the other hand, major glass substrate manufacturers Corning (GLW-US), Electrical Glass (NEG), Asahi Glass (AGC) have successively reported equipment failures, power outages, and even explosions since the end of last year. Although each glass melting furnace has a limited single impact, However, the sum total has some impact on the overall panel industry.
Especially during the period when the overall supply of panels is limited and the price is rising, even if individual panel manufacturers can obtain the same amount of glass substrate supply during this period, it is also necessary to avoid capacity shifts on the purchasing side and the panel manufacturers should also take into account the largest profit margins. Will still push up the overall panel price increase in the first quarter.
Xie Qinyi, senior research director of Omdia’s display department, said that the short-term shortage of panel supply is difficult to solve, especially after the Chinese New Year holiday in factories, there is a fear of “shortage of labor”. By then, the overall production situation will be tighter, and the shortage of supply will continue to burn.
According to the survey, the quotations of the three major applications of large-size panels continued to rise in February after the overall increase in January. It is expected that after the Lunar New Year, the quotations in March and April will still be supported. The overall panel quotation for the first quarter looks at a double-digit range. Panel makers AUO and Innolux have a chance to outperform the previous quarter in their profit performance in the first quarter.
