According to the latest investigations by the WitsView research division of TrendForce, disappointing 1Q20 shipment performances by panel manufacturers, combined with the continued acceleration of the COVID-19 pandemic in Europe and the U.S., resulted in a reduction of proposed TV panel purchases in 2Q20 by several major TV brands. Despite urgent orders for IT panels due to the increased need for telework, overall IT panel demand following the fulfillment of these urgent orders remains yet unclear. As such, the previous projection of tight large-size DDI supply in 2020 has not surfaced at the moment.
As Samsung Display Co. (SDC) buckles under the pressure of oversupply and pandemic-induced operating difficulties, the company has made the decision to exit the LCD panel manufacturing business. According to the latest investigations by the WitsView research division of TrendForce, the rapid decline of Korean manufacturers’ large-size panel glass capacity by area in 2020 is projected to result in a drop in market share from 28.4% in 2019 to 20.4% this year. The production capacity of Chinese panel manufacturers is expected to continue expanding in 2021. This growth, combined with the capacity shortfall from SDC’s discontinued LCD manufacturing, is expected to lead to Korean panel manufacturers’ large-size panel capacity by area to drop below 10% market share.
According to the latest investigations by the WitsView research division of TrendForce, the oversupply of TV panels in 2019 resulted in a major price drop. As such, panel manufacturers hoped to utilize their excess capacity in 2020 through increasing their production of monitor panels, with Samsung Display (SDC) having the most extensive plans. However, given the recent spread of the COVID-19 pandemic, the market has adopted a pessimistic outlook regarding end device demand. The latest news indicates that SDC has informed its clients that it will exit the LCD market by the end of the year. This news is expected to lead to a major reshuffle in the monitor panel market.
As the COVID-19 pandemic continues to accelerate and cause damage to the global economy and consumers’ purchasing power, TrendForce has compiled its latest report on the statuses of key electronics component and downstream industries, with data last updated on March 26, 2020. The report provides a deep dive into the pandemic’s influences on several high-tech industries.
According to WitsView, a division of TrendForce, its latest TV research report shows that the threat of looming China-US trade war tariff covered the year 2019. Besides, consumers' habits of using TVs were changed, so demand was indirectly reduced. Fortunately, brands' promotional campaigns during Black Friday and November 11 were helped by massive fall of TV panel prices in 4Q19. Thus, the TV set shipment only slightly declined by 0.8% YoY in 2019, reaching 217.8 million units.
