Taiwan makers shipped 7.365 million TVs in third-quarter 2021, rising 2.9% sequentially, according to DIGITIMES Research figures. As seasonal demand pick up, Taiwan makers' TV shipments are expected to grow 9.5% sequentially in the fourth quarter.
LCD TV panel supply in terms of area shipments in fourth-quarter 2021 is estimated to be 8.9% in excess of demand, and consequently, November quotes for such panels of all sizes are expected to continue to drop sequentially, according to Sigmaintell Consulting.
Coretronic has upward adjusted forecast growth in 2021 shipments for LED backlight units (BLUs) from 20% originally to 25-30%, according to president Sarah Lin for the company's Display Business Group.
Demand for LCD monitors supporting remote working and learning in the wake of the coronavirus pandemic remains strong, but the retail market sees a 20-30% shortage in supply, according to Victor Chien, president for Acer's Digital Display Business.
With demand for LCD TV panels decreasing, the off-season this year for the LED sector has arrived 1-2 months earlier than in the past, but Apple's adoption of miniLED backlighting for 12.9-inch iPad Pro and 14- and 16-inch MacBook Pro has lessened the off-season impact, according to industry sources.
While LCD TV panel prices have generally been falling since July 2021, the extent of decrease for the 32-, 43- and 55-inch segments has been much bigger the 65- and 75-inch ones, which has sent makers cutting more of their small- to medium-sise TV panel production in order to curb price falls.
There will be 887 million large-size (9-inch and above) LCD panels shipped globally in 2021 and the shipments will increase to 918 million units in 2026 at a CAGR of 0.69%, according to Digitimes Research.
In the China market, 2.36 million TVs were sold during the week-long holidays in early October 2021, decreasing 12.2% on year, while the corresponding sales value of CNY9.1 billion (US$1.4 billion) increased 0.6%, according to All View Consulting (AVC).
Local governments' restricting power supply in China has led to decreases in utilization of production capacities at LCD panel supply chain makers' factories mostly in southern and eastern China to about 60%, and consequently, output of panel components and LCD modules has dropped by about 30%, according to AVC Revo.
Chinese panel makers have become the world's largest LCD makers after over a decade of fierce market competition, while South Korean panel makers have chosen to gradually withdraw from the LCD market and turn their attention to OLED.
Viewing that prices for TV-use LCD panels began to drop significantly in August 2021, China-based LCD panel makers BOE Technology and China Star Optoelectronics Technology (CSOT) as well as LG Display began to reduce the production of such panels in September, a bid to prevent such prices from dropping further, according to industry sources.
AU Optronics (AUO) shipped LCD panels totaling 2.171 million square meters in August, increasing 3.6% on month, but its consolidated revenues for the month decreased 1.91% sequentially to NT$32.710 billion (US$1.17 billion) due to panel price declines.
In view of the high growth in demand for TVs in India, India Cellular and Electronics Association (ICEA) recommends that the India government set up local TV supply chains. As it is not easy to set up a local TV panel supply chain competitive in production cost in India, the transfer of panel technologies from overseas panel makers could be a feasible strategy.
China-based TCL will expand the annual production capacity for miniLED-backlit LCD TVs to 10 million units in 2024, with miniLED backlighting to penetrate over 60% of its large-size LCD TVs in the year, according to industry sources.
Chip shortages have been troubling many vendors, including Apple, whose much anticipated miniLED-backlit MacBook Pro series may be unveiled later than expected. The electric vehicle market looks so promising that many companies are eager to have a share, including Chinese handset vendor Xiaomi, which has just set up an EV business. LCD TV panel prices had soared for months until recently, and they are expected keep falling till year-end 2021.
LCD TV panel prices have been falling at a rapid pace since August, and may continue dropping until year-end 2021, as demand for TVs in developed countries has been declining and most of TV vendors have decreased panel procurement, according to industry sources.