LCD panel oversupply gap to decrease in 2Q 2010

Oversupply of LCD panels in the second quarter of 2010 is expected to decrease more than 5% compared to the previously estimated 7% with regards to total demand, caused by the recent earthquake, which…

Oversupply of LCD panels in the second quarter of 2010 is expected to decrease more than 5% compared to the previously estimated 7% with regards to total demand, caused by the recent earthquake, which reportedly caused problems to panel and glass production. According to the majority of LCD manufacturers in Taiwan, the earthquake did not cause serious damage to their business or assets and their production remains normal. Chi Mei Optoelectronics (CMO), which has a large manufacturing base in the Southern Taiwan Science Park (STSP), however, said that the earthquake is unlikely to affect its normal production, even if it was halted for a short period of time. HannStar Display“s 5G plant in Tainan also stopped production, but said that shutting down the plant was a standard procedure for assessment after an earthquake, and will spend a few days checking all the equipment before resuming production, the company said. AU Optronics (AUO) and Chunghwa Picture Tubes (CMO) both said that their production was not affected by the earthquake, even if sources say that it is difficult to assess CMO“s losses, but that the earthquake has reduced pressure on oversupply in the second quarter. Corning said that its glassmaking operations in Tainan, southern Taiwan, are running as normal and that its facilities in Taichung in central Taiwan remain unaffected. Asahi Glass, on the other hand, said that its back-end glass processing plant in Tainan had undergone damage. Glass supplier AvanStrate was shut down during the earthquake, but the company only has a 5-6% of the total glass market. Sintek Photronic, a manufacturer of colour filters, and backlight unit (BLU) manufacturer Kenmos Technology said that they did not see a significant impact on their finances and operations. LCD module (LCM) maker Star World Technology (SWTC) and STN LCD panel maker Emerging Display Technologies (EDT), reported that their production lines were not affected by the earthquake.