Rising demand for small- to medium-size panels has been pushing large-size panels out of focus in the glass market recently. The LCD departments of Samsung Electronics and LG Display have both reporte…
Rising demand for small- to medium-size panels has been pushing large-size panels out of focus in the glass market recently. The LCD departments of Samsung Electronics and LG Display have both reported losses for two consecutive quarters. Rising demand for smartphones and tablet PCs has benefited firms that produce small to medium-size panels. Taiwan-based panel makers also have not been earning as much revenue as was previously projected. First-tier panel makers such as AU Optronics (AUO) and Chimei Innolux (CMI) both reported losses in the 1Q of 2011. Second-tier panel makers such as Chunghwa Picture Tubes and HannStar Display shifted production focus to small to medium-size panels, contributing to their smaller losses reported in 1Q 2011. When consumer demand was strong for large-size TVs, large-size panel makers expanded capacity aggressively, causing prices to fall rapidly. The market has been expecting TV panel prices to climb out of the trough, however, the process seems to be taking longer than expected. The price of a 32-inch TV panels was around USD 200 per unit in April 2010. The price has decreased to USD 145 per unit in April 2011. The 30% decrease has been causing many large-size panel makers to face serious losses in revenues. In previous years, panel makers believed only first-tier panel makers had the ability to produce large-size panels for TVs. Small- and medium-size panels were left to second-tier producers. However, the focus of the market has been shifting due to products such as smartphones and tablet PCs.