According to the latest investigations by TrendForce’s Department of Display Research, the market demand for display panels has been surging in recent months. In particular, after the 2Q20 period of sluggish purchasing momentum as a result of the COVID-19 pandemic, the TV panel market has seen its demand rebound quickly, in turn resulting in a higher-than-expected spike in TV panel quotes in July. Other than 75-inch panels, prices for all sizes of TV panels are likely to go into a noticeable uptrend in July, with a projected 8-10% MoM increase in 32-inch and 55-inch panels. Prices for 43-inch, 50-inch, and 65-inch panels, which are panel sizes with equally strong demand momentum, are expected to see average hikes of 6-8%, resulting in a rarely seen bull market for the display panel industry in recent years.
The U.S. Department of Commerce announced on June 29 that the newly instituted Hong Kong national security law by the Chinese government will increase “the risk that sensitive U.S. technology will be diverted to [the Chinese government]”; the Department therefore put a temporary stop to the preferential treatment the U.S. had afforded to Hong Kong. TrendForce indicates that, as Hong Kong is a major site of chip warehousing for manufacturers and distributors worldwide, the U.S. government’s withdrawal of preferential treatment is meant to directly curtail the risk that companies may export products that contain sensitive information, through Hong Kong, to China. This action is thus expected to drastically change the current geographical concentration of semiconductor products and the production strategy of chip manufacturers.
According to the latest investigations by TrendForce’s Department of Display Research, the shipment of gaming monitors (defined as having frame rates of 100Hz or higher) is projected to reach upwards of 12.2 million units in 2020, a 37% increase YoY, owing to the wider variety and market availability of models with consumer-friendly prices.
As Apple’s upcoming release of products featuring Mini LED backlight generates a growth in Mini LED demand, the company has also stimulated actors in the Mini LED supply chain to increase their production capacities. According to the latest investigations by the LEDinside research division of TrendForce, in 1Q21 Apple is expected to not only release its 12.9-inch, Mini LED backlight-equipped iPad Pro, but also open contract bids for its 14-inch and 16-inch MacBooks. Apple has currently chosen Taiwanese manufacturers of display-related components to supply its Mini LED backlights, since Taiwanese suppliers have an advantage in new product development given their superior product stability and technological maturity. Both upstream and downstream suppliers are expected to participate in the Mini LED supply chain, including LED chip manufacturer Epistar, testing and sorting providers FitTech and Saultech, SMT supplier TSMT, and PCB backplane manufacturer Zhen Ding Tech – all of which serve important roles in the development of new Mini LED backlight displays.
According to the latest investigations by the DRAMeXchange research division of TrendForce, despite the reduced demand for consumer electronics and smartphones as a result of the COVID-19 pandemic, the NAND Flash market showed a short supply in 1H20, thanks to the corresponding rising demand for cloud services and distance education, as well as increased inventory procurement by some clients concerned with a possible breakage in the supply chain. On the whole, SSD currently dominates NAND Flash demand, while demand from the eMMC, UFS, and wafer markets, which are related to smartphones and consumer electronics, remains relatively sluggish.
