WitsView indicates a possible panel price rise in February

Taipei, January 20, 2009---According to WitsView, with the panel prices in the three main applications staying flat in 2HJan, the likelihood of prices hitting bottom in Jan or Feb has greatly increased. This has spurred downstream clients to prepare their inventory.

Since the Taiwan and China panel makers’ sharp production cutbacks in 4Q08, the average utilization rates have fallen below 50%. The year-end inventory accounting pressure and official implementation of the Statement of Financial Accounting Standards No. 10: Inventory further prompted the Taiwan panel makers to aggressively clear out their inventory, thus leading to irrational panel ASPs. Looking into January, due to the upcoming Chinese Lunar New Year holidays and panel maker employees taking unpaid leave, there are much fewer working days this month. Seeking to avoid the potential losses from the persisting panel price drops, downstream clients have kept their inventory at very low levels.

The production cuts and rising financial pressure caused by the very weak panel prices have at last created a possible rebound in monitor panel prices this month, which saw the most significant drops among the 3 applications. Some panel makers are already raising their price quotes. A more evident monitor price rebound should be seen in February. Meanwhile, NBs and TVs should hit bottom by the end of February. However, "we are concerned that the “fake” market demand and utilization rate increase, will not be conducive to further panel price increases, especially with the end market demand still very uncertain," said WitsView's analysts.

About WitsView

Founded in the year 2004, WitsView, a subsidiary brand of DRAMeXchange, is composed of a team of TFT-LCD industry experts. The research field covers the development and market trend of upstream components, mid stream panels and downstream system integrators and retailers.

For more about WitsView, please visit www.witsview.com