The global capacity of large-size LCD panels by area is projected to grow 6.6% annually to reach 208 million square meters in 2016, reports WitsView, a division of TrendForce. The supply of LCD panels this year has been disrupted by the February earthquake in Taiwan and Samsung Display’s problems with transitioning to a new manufacturing process. WitsView further forecasts that the global large-size LCD panel capacity for 2017 is set to grow at the slowest pace since 2014 at an annual rate of just 3.9%, totaling 216 million square meters.
Soaring prices during the second half of 2016 and the planned closure of Samsung Display’s L7-1 fab have created anxieties about supply shortages in the LCD panel market, according to the latest analysis by WitsView, a division of TrendForce. Due to these factors, the share of 40- to 49-inch models in the combined LCD TV set shipments from the top 15 branded vendors for 2016 will be smaller than the projection made at the start of the year by 3.8 percentage points. Hence, the mainstream size bracket of LCD TV sets is unlikely to make the transition from the 32-inch to the 40- to 45-inch, or the mid-size segment.
WitsView, a division of TrendForce, reports that large-size LCD panel shipments for this August reached 68.84 million units, representing a monthly increase of 9.3%. The growth was attributed to TV and IT brands stocking up for the upcoming promotional sales events. A comparison of results by panel applications also show that tablet panels registered the largest monthly shipment increase at 25%.
WitsView, a division of TrendForce, reports that strong demand is pushing up prices of LCD panels for smartphone displays of the lower resolution specs. With demand for high-end device models falling short of expectations, smartphone brands are now relying on low-end devices with bargain-priced panels to boost their product shipments. However, limited supply and increasing demand have caused prices of 4-inch WVGA and 4.5-inch FWVGA panels to reach new highs in September, with monthly increases at over 50%, respectively. Looking ahead, prices of lower-end smartphone panels are expected to keep rising in the fourth quarter.
WitsView, a division of TrendForce, anticipates growing oversupply of LTPS LCD panels. Worldwide LTPS panel capacity expansion for this year is slower than initially expected as several new fabs have delayed mass production until after this year’s fourth quarter. However, this delay will also lead to an annual increase of 31.6% for next year’s total LTPS panel capacity. The oversupply situation will also get worse with the gradual adoption of AMOLED panels among mid-range and high-end smartphones.
