Supply chain
Taiwan ships less small- to mid-size panels in 1Q19, says Digitimes Research
Jason Yang, DIGITIMES Research, Taipei

Shipments of small- to medium-size LCD panels by Taiwan makers fell 23.6% sequentially to 184 million units in the first quarter of 2019, reflecting factors including seasonality and significant reduction in shipments by financially-battered Chunghwa Picture Tubes (CPT), according to Digitimes Research.

CPT saw its shipments tumble 68.7% sequentially in the first quarter as its production was disrupted by its financial woes. Fellow company HannStar Display suffered a less severe drop of 25.5% as it managed to receive more windfall orders for smartphone panels while reducing those models for feature phones.

Innolux experienced the least sequential decline of 2.5% in the first quarter, thanks to strong demand for automotive and tablet panels.

Taiwan's shipments of small- to medium-size panels are expected to rebound 6.7% on quarter in the second quarter, buoyed by a pick-up in seasonal demand and a gradual resumption of panel production at CPT.

But such shipments are likely to plunge 37.3% on a yearly basis, as CPT will not be able to resume production of panels for feature phones, and HannStar plans to ramp up automotive and smartphone panels, while reducing those for feature phones.

Shipments of medium-size panels for consumer electronics applications, which suffered a severe sequential drop of 49.1% in the first quarter due to seasonal inventory adjustments, are expected to rebound 29.5% in the second quarter, Digitimes Research estimates.

For individual companies, CPT is expected to see its shipments expand 75.2% on quarter in the second quarter thanks to a gradual recovery of its production capacity, while HannStar is likely to be the sole panel producer that will see its panel shipments continue to fall in the second quarter as it aims to ramp up smartphone panels and medium-size models.

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