The market for large-size LCD panels would probably turn sour again in the second half of 2012 despite a recent rebound in panel prices that was pushed up by supply side bottlenecks rather than a substantial increase in market demand, according to industry sources.
The supply bottlenecks resulted from the low yield rates of new technologies and new products that panel makers have been developing since the fourth quarter of 2011, the sources revealed.
Prices of LCD TV panels have hiked by US$1-2 on average in April, as some panels makers have shifted some 8.5G lines to producing panels for tablet PCs to ramp up profits, and shipments of TV panels from the 8.5G lines in China have been limited due to low yield rates, the sources added.
Monitor panel prices were up US$1 on average recently due in part to an upsurge in demand from branded monitor vendors but also to a sharing in capacity with TV panels at panel makers, indicated the sources.
The supply bottlenecks also occurred in the notebook panel segment as branded vendors have begun to build up their inventories in preparation of the launch of Intel's Ivy Bridge CPUs and Microsoft's Windows 8, added the sources.
But the purchases of TV panels from China-based TV vendor are expected to begin to subside in May-June after the May holiday season, which may push down panel prices again, commented the sources.
Capacity ramps by China-based BOE Technology, China Star Optoelectronics Technology (CSOT) and CEC-Panda LCD Technology could also affect the panel market in the second half of 2012, said the sources.
Article translated by Steve Shen
