Suppliers overproducing LCD panels

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Suppliers overproducing LCD panels

SEOUL, South Korea — The liquid crystal display (LCD) market is expected to face a greater than 10 percent global panel oversupply throughout the year as major Korean and Taiwanese LCD makers expand capacity, according to South Korea market research firm Displaybank.

The firm reported that global LCD panel demand will reach 30.9 million square-meter glass sheets, exceeding 27.2 million square meters in supply.

The oversupply rate is expected to reach 9.7 percent the first quarter, with the supply of 6.7 million square meters of glass substrates exceeding a total demand forecast of 6.1 million square meters. The oversupply rate is slated to increase to 13.8 percent the second quarter, then peak at 15 percent the third quarter when the supply reaches 8.1 million square meters and demand 7.0 million square meters, according to the report.

South Korea’s Samsung Electronics has decided to increase volume in its 7-1 Generation 7 line to 75,000 glass sheets per month from 60,000 sheets, while the company’s 7-2 line will churn out 45,000 sheets monthly by mid-year and an additional 45,000 by year-end.

Samsung's Korean rival LG.Philips LCD will also expand its Generation 6 plant to produce 120,000 sheets monthly from 90,000, and has begun producing Generation 7 glass substrates with the goal of reaching 90,000 sheets monthly by the year’s end.

Displaybank added Taiwan’s AU Optronics Corp. plans to expand capacity at its latest Generation 5 line to 60,000 sheets monthly, while its Generation 6 line will have a similar capacity by the year’s end. Other Taiwanese LCD market players such as Chi Mei Optoelectronics and Quanta Display Inc. have also announced expansion plans.

The firm said the race to expand LCD fabs reflects a prevailing sentiment among suppliers that lagging behind in production capacity would put them at a competitive disadvantage.

Source:
http://www.eetimes.com/news/latest/s...leID=177101322