Search Results

Search Results

keyword


Sort by


Date Range

Resource Types


Research Fields


Filter by Keyword(s)




keyword:Jeanette Chan12 result(s)

Press Releases
As Operating Pressures Rise, Panel Manufacturers Enact Strict Production Controls to Balance Supply/Demand, 4Q22 Utilization Rate Forecast to Drop to 60%, Says TrendForce

2022/10/06

Display

TrendForce indicates, overall utilization rate of LCD large generational fabs of Gen5 and above (in terms of wafer starts) slipping to 60% in 4Q22 cannot be ruled out, which would be the lowest level in the past ten years Sluggish panel demand and the fact that most panel makers have officially turned from profit to loss in 2Q22 are the key factors forcing panel makers to take a more rigorous approach to production control in 2H22 TrendForce states that the timing of purchasing volume adjustment on the part of IT brands lags relatively and its effect of shrinking orders quite sedate, resulting in the current market’s high inventory level still awaiting disposal Since Gen 5 to Gen 6 are the production centers of IT panels, 4Q22 utilization rate is expected to drop by 59 percentage points compared to 3Q22 to 482% due to weak demand Although LG Display plans to close its P7(Gen75) production line in 1Q23, some products will be produced in advance of 4Q22, which will help bolster the production volume of Gen 7 to 75 TVs On the other hand, Innolux significantly reduced utilization rate in September as a response to market conditions In addition, leading monitor brands have increased the magnitude of purchase order correction in 2H22, affecting Gen7-75 production lines primarily focused on monitor panel wafer starts Therefore, utilization rate performance of Gen7-75 generational fabs is estimated to continue its decline and present a downward trend HKC originally planned to increase wafer starts at each of its factories in 4Q22 However, due to some panel manufacturers recently planning to increase the price of certain TV panel sizes to accelerate the achievement of TV panel supply/demand equilibrium, the company has shifted to reducing wafer starts at all sites except its IT product focused Mianyang factory In addition, CSOT has also decided to take a one-week annual holiday in October, resulting in an estimated 16 percentage points quarterly decrease in overall Gen 8x utilization rate Nearly 90% of Gen 10-105 production capacity is utilized for TV panels while only a small amount is used in the production of commercial display panels As quotations of 65-inch TV panels has been close to BOM cost, BOE and CSOT have decided to reduce production volume in response Wafer starts of BOE B17 in 4Q22 is expected to fall 142% compared to 3Q22, precipitating a 35 percentage points QoQ drop in Gen 105 utilization rate As panel manufacturers implement production reduction plans in 2H22, the single-quarter supply-demand ratio has clearly settled and inventory deferred from 1H22 will experience declining levels along with significant drops in production Consumer demand will suffer as global economic and geopolitical risk remains high in 2023 Rising inflation will suppress consumer demand as the demand-side perspective remains neutral to conservative Although the supply side is constrained by the planned closure of LG Display, the addition of CSOT T9(Gen86) will drive overall panel supply higher compared to 2022 TrendForce indicates that this also means the market will continue to confront high oversupply risk next year If panel makers can maintain their low utilization rate strategy, it will be a great boon to the health of the industry For more information on reports and market data from TrendForce’s Department of Display Research, please click here, or email Ms Vivie Liu from the Sales Department at vivieliu@trendforcecom For additional insights from TrendForce analysts on the latest tech industry news, trends, and forecasts, please visit our blog at https://insidertrendforcecom/

Press Releases
Weak Demand and Redlining Inventory, Panel Makers Forced to Reduce Utilization, Says TrendForce

2022/07/18

Display

Moving into 2H22, terminal brands continue to adjust their inventory, not only weakening panel demand, but also inducing a sustained drop in panel quotations The sharp increase in operating pressure affecting panel manufacturers has forced the display industry to restrain production According to TrendForce's "Monthly Panel Supplier Utilization Report," utilization rate (calculated by the volume of glass input) in 3Q22 is expected to fall to 70%, a substantial decrease of nearly 73 percentage points from 2Q22 TrendForce indicates, border controls and lockdowns have led to a disruption of logistics and labor due to the impact of the pandemic in the past two years In order to avoid production and shipment gridlock, branded manufacturers overstocked from distribution channels to components However, as logistics and transportation conditions have improved, previously prepared materials have subsequently arrived in relevant warehouses or ports As pandemic induced demand subsides, terminal sales have suffered due to rising global inflation and the Russian-Ukrainian war As a result, the inventory problem continues to deteriorate and all aspects of the overall supply chain has entered red alert Since this type of situation applied not only to a single application, utilization rate is reduced whether it is Gen5, primarily used in producing laptops, or large-size LCD monitors and TVs None of the large generational fabs were spared TrendForce indicates that the utilization rate of Gen5 to Gen75 is expected to decrease by 77% percentage points to 637% and the utilization rate of Gen8 to Gen105 will decrease by 7 percentage points to 75% in 3Q22 More than 90% of the Gen105 utilization rate used to produce TVs is expected to drop by 178 percentage points QoQ, which also highlights the continuing pessimistic demand for TV panels in 3Q22 As far as panel makers are concerned, depreciation and amortization pressure on Chinese panel makers is more severe than that of other panel makers due to the construction of new factories In addition, looking at total shipments of larger-sized applications (TVs, monitor panels, and notebooks), Chinese panel makers account for more than half the market, so when the bottom drops out, impact on these companies will be greater than on competitors Looking at the three leading Chinese panel manufacturers, although BOE’s capacity allocation is very flexible, a drop of 4 percentage points in overall utilization rate cannot be ruled out in 3Q22 At the same time, China Star Optoelectronics (CSOT) and Huike Optoelectronics (HKC) will not only readjust their older factories in 3Q22 but also slow the rate at which new factories ramp up The overall operating watermark of these two panel manufacturers is estimated to decrease by 133 and 74 percentage points, respectively Although the pressure of depreciation and amortization on Taiwanese manufacturer AUO is small, in response to changes in market demand, the company had already started production adjustment in 2Q22 It is expected to continue implementing this strategy in 3Q22 with overall utilization rate falling to 50% On the other hand, Innolux expects overall utilization to drop by 67 percentage points QoQ Japanese panel manufacturer Sharp is at a relative disadvantage in terms of overhead, and its customer concentration is too high Its major branded clients have canceled orders, allowing inventory to stack up quickly Therefore, Sharp has only just announced that it will begin to aggressively scale-down in its Japanese production line in July In turn, the company’s overall utilization rate decreased by 263 percentage points to 593% in 3Q22 LG Display, a Korean panel maker, is expected to maintain a similar operating level as in 2Q22 after a sustained contraction in LCD production capacity due to a strategic shift TrendForce indicates, if panel makers do not wish to face the risk of high inventories at the beginning of 2023, they should maintain reduced operations in 4Q22 in order to eliminate existing panel inventory Therefore, it cannot be ruled out that the utilization rate of LCD Gen5 (including) and above large generational fabs will maintain the same level of operation as in 3Q22 In the past, production cuts were the main response whenever the market was oversupplied However, with future production capacity still growing, the speed at which brands deplete their inventories and global political and economic trends will be key factors affecting the future display market If market conditions continue to deteriorate, it cannot be ruled out that the industry will face another reshuffle, setting off a further wave of mergers and acquisitions For more information on reports and market data from TrendForce’s Department of Display Research, please click here, or email Ms Vivie Liu from the Sales Department at vivieliu@trendforcecom For additional insights from TrendForce analysts on the latest tech industry news, trends, and forecasts, please visit our blog at https://insidertrendforcecom/

Press Releases
LCD TV Panel Prices Fall to New Low, Panel Production Capacity Cut in 3Q22, Says TrendForce

2022/06/09

Display

According to TrendForce, LCD TV panel quotations bore the brunt of continuous downgrades in the purchase volume of TV brands and pricing for most panel sizes have fallen to record lows Recently, it was announced that the 32-inch and 43-inch panels fell by approximately US$5~US$6 in early June, 55-inch panels fell approximately US$7, and 65-inch and 75-inch panels are also facing overcapacity pressure, down US$12 to US$14 In order to alleviate pressure caused by price decline and inventory, panel makers are successively planning to initiate more significant production control in 3Q22 According to TrendForce’s latest research, overall LCD TV panel production capacity in 3Q22 will be reduced by 12% compared with original planning As Chinese panel makers account for nearly 66% of TV panel shipments, BOE, CSOT, and HKC are industry leaders When there is an imbalance in supply and demand, a focus on strategic direction is prioritized  According to TrendForce, TV panel production capacity of the three aforementioned companies in 3Q22 is expected to decrease by 158% compared with their original planning, and 2% compared with 2Q22 Taiwanese manufacturers account for nearly 20% of TV panel shipments so, under pressure from falling prices, allocation of production capacity is subject to dynamic adjustment On the other hand, Korean factories have gradually shifted their focus to high-end products such as OLED, QDOLED, and QLED, and are backed by their own brands However, in the face of continuing price drops, they too must maintain operations amenable to flexible production capacity adjustments TrendForce indicates, in order to reflect real demand, Chinese panel makers have successively reduced production capacity However, facing a situation in which terminal demand has not improved, it may be difficult to reverse the decline of panel pricing in June However, as TV sizes below 55 inches (inclusive) have fallen below their cash cost in May (which is seen as the last line of defense for panel makers) and is even flirting with the cost of materials, coupled with production capacity reduction from panel makers, the price of TV panels has a chance to bottom out at the end of June and be flat in July However, demand for large sizes above 65 inches (inclusive) originates primarily from Korean brands Due to weak terminal demand, TV brands revising their shipment targets for this year downward, and purchase volume in 3Q22 being significantly cut down, it is difficult to see a bottom for large-size panel pricing TrendForce expects that, optimistically, this price decline may begin to dissipate month by month starting in June but supply has yet to reach equilibrium, so the price of large sizes above 65 inches (inclusive) will continue to decline in 3Q22 TrendForce states, as panel makers plan to reduce production significantly, the price of TV panels below 55 inches (inclusive) is expected to remain flat in 3Q22 However, panel manufacturers cutting production in the traditional peak season also means that a disappointing 2H22 peak season is a foregone conclusion and it will not be easy for panel prices to reverse However, it cannot be ruled out, as operating pressure grows, the number and scale of manufacturers participating in production reduction will expand further and it timeframe extended, enacting more effective suppression on the supply side, so as to accumulate greater momentum for a rebound in TV panel quotations For more information on reports and market data from TrendForce’s Department of Display Research, please click here, or email Ms Vivie Liu from the Sales Department at vivieliu@trendforcecom For additional insights from TrendForce analysts on the latest tech industry news, trends, and forecasts, please visit our blog at https://insidertrendforcecom/

Press Releases
Banned by the US, ChuZhou HKC Shipments Unaffected For Now, Says TrendForce

2022/02/09

Display

The Bureau of Industry and Security (BIS) of the US Department of Commerce recently issued the latest Unverified List (UVL) which includes ChuZhou HKC Optoelectronics Technology Co, Ltd, according to TrendForce’s investigations The announcement states that if US suppliers wish to ship products to companies on the UVL, they can still submit documentation to obtain a shipping license According to TrendForce’s understanding, the primary reason ChuZhou HKC is included on the UVL is that it plans to import panel-related analytical instruments from the United States in the near future, and actions taken by BIS are not indicative of the Chinese panel industry as a whole Currently, ChuZhou HKC is in the process submitting proposals and negotiating with its US material suppliers, thus TrendForce’s assessment is that there is no impact on the supply and shipment of ChuZhou HKC products for the time being It should be noted that according to TrendForce statistics, HKC’s Chuzhou plant will account for only 38% of global LCD panel capacity in 2022, which is a fairly insignificant share However, this plant accounts for 30% of HKC's own capacity, thereby playing a pivotal role in company production The Chuzhou factory primarily produces TV panels and monitor panels, among which TV panels account for nearly 80% of the factory's production If the current ban cannot be resolved smoothly, it will impact shipments of HKC TV panels In addition, the glass substrates used in HKC’s Chuzhou factory are sourced from multiple glass substrate suppliers, with approximately 40% coming from Corning, a US supplier Since Corning localized it production according to the location of panel makers, it is not expected to be limited by the restrictions on the export of US production to China enumerated on the UVL, but detailed regulations are still awaiting clarification At present, the supply of materials has not been affected, HKC’s Chuzhou plant maintains normal operation, and its clients have yet to move panel procurement away from the Chuzhou production line For more information on reports and market data from TrendForce’s Department of Display Research, please click here, or email Ms Vivie Liu from the Sales Department at vivieliu@trendforcecom For additional insights from TrendForce analysts on the latest tech industry news, trends, and forecasts, please visit our blog at https://insidertrendforcecom/

Press Releases
Apparent Oversupply of TV Panels Expected to Be Partially Addressed Via Panel Manufacturers' Production Capacity Adjustments in 4Q21, Says TrendForce

2021/09/14

Display

Thanks to their continued capacity expansion and M&A efforts, Chinese panel manufacturers accounted for nearly 60% of the global supply of TV panels in 1H21, according to TrendForce’s latest investigations These suppliers have not only managed to dominate their global competitors, but also become the key determinant of the supply and demand situation in the TV panel market TrendForce believes that, while the TV panel market has started to experience a bearish trend, the industry must pay close attention to whether Chinese suppliers will eschew their previous strategy of maximum capacity utilization and instead turn to other options in order to maintain the health of the overall market Taiwanese and Korean suppliers, on the other hand, have opted for a strategy that optimizes their existing operations by reallocating some of their production capacities from TV panels to other product categories such as IT panels In addition to raising these suppliers’ competitiveness through better product differentiation, the reallocation of production capacity also alleviates the suppliers’ pressure of having to rely solely on TV products to expend their panel capacities Because the TV panel market’s out-of-balance supply and demand situation is unlikely to be resolved on its own, certain panel manufacturers have already begun assessing the feasibility of adjusting their production capacities for 4Q21 In particular, Gen 85 and Gen 105 production lines, which manufacture the majority of TV panels, play a key role in ensuring balance between the market’s supply and demand While panel suppliers are expected to independently reduce their current capacity utilization rates, their new production lines will also gravitate towards a slowdown in panel output Furthermore, ongoing issues with the supply of glass substrates will also constrain the capacity utilization rates of certain panel suppliers Taking the above considerations into account, TrendForce expects Gen 5 (and above) production lines to contribute to the supply of all display panels, measured by total panel area, by 25% less than previously expected for 4Q21 As well, in order to alleviate the pressure of excess production capacity for TV panels, panel suppliers will not only increase the share of 85-inch (and above) TV panels in their current output, but also reallocate some of their production capacities from TV panels to IT panels, including desktop monitor panels and notebook panels, both of which are currently in demand These aforementioned assumptions would suggest that total TV panel input by area is expected to undergo a 21% QoQ decline for 4Q21 In particular, Gen 85 lines, which account for much of TV panel manufacturing, will experience the most noticeable capacity reduction at an 115% QoQ drop for 4Q21 For more information on reports and market data from TrendForce’s Department of Display Research, please click here, or email Ms Vivie Liu from the Sales Department at vivieliu@trendforcecom For additional insights from TrendForce analysts on the latest tech industry news, trends, and forecasts, please visit our blog at https://insidertrendforcecom/

  • Page 1
  • 3 page(s)
  • 12 result(s)