Taiwan: LCD panel makers to return to profit

  Country outlook

According to a forecast from market researcher NPD DisplaySearch, recovering demand for TV panels should help end prolonged oversupply and trigger a round of price rebounds, enabling Taiwanese LCD panel makers to return to the black next quarter.

Lcdpanels
Taiwanese LCD panel makers are expected to return to the black next quarter
Taiwanese LCD panel makers are expected to return to the black next quarter, as recovering demand for TV panels should help end prolonged oversupply and trigger a round of price rebounds, according to a forecast from market researcher NPD DisplaySearch.
Supply has also decreased as LCD panel makers shift production to high-resolution OLED screens for smartphones and TVs, which has limited output of TV panels because of a relatively lower yield rate, according to NPD DisplaySearch vice president David Hsieh.
“We are optimistic about the second and the third quarters ... We are seeing supply of TV panels becoming tight recently,” Hsieh said. “A lot of TV brands started placing orders to build inventory for the second half [shopping season] ahead of schedule, before panel prices go even higher.”
Companies have already started negotiating with panel suppliers in preparation for “Black Friday” sales, rather in June or July, he added.
Black Friday is the day following Thanksgiving in the US, traditionally the beginning of the Christmas shopping season.
Moreover, TV sales in China during the Labor Day holidays beginning on 1 May are expected to grow at a 10% annual rate this year, according to Hsieh.
Due to improvements in oversupply, panel prices are expected to rise at a 2-3% monthly rate through the third quarter, while demand is expected to exceed supply more severely than this current quarter.
The price increase would bring local panel companies’ net profit margin back int...






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