LCD panel market will likely face shortage of supply

The LCD market is expected to undergo a shortage of supply from the second half of this year until as late as next year. A major Korean company, LG Display, has recently expanded its production line in China and local panel makers in the nation are also increasing their lines, but it will take time to fully complete the increase.

And the lack of supply is partly attributable to a variable that China’s production yield rate fails to meet the demand. Since 2012, global display makers have moved most of their small and mid-sized LCD panel production lines to lines for manufacturing other products. As a result, this turned out to have intensified the shortfall of supply.

China’s biggest display will, reportedly, start operating the eighth-generation line plant with monthly output of 30,000 units in Chongqing at the end of this year. CEC Panda, Chinese panel maker based in Nanjing, China, also intends to open the eighth generation line plant with monthly output of 75,000 units later this year.

LG Display has already started transitioning its LCD production line to the Oxide line. Samsung Display is also expected to move its Cheonan plant’s sixth-generation a-Si line to the Oxide line.

LG Display’s CEO Han Sang-beom said “The supply is expected to grow in the five percent range in the LCD panel market this year, and the demand in the seven to eight percent range.” “The growth of demand is forecast to slightly surpass that of supply, but overall the two would remain in a balanced status.

 
 
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