Liquid-crystal-display (LCD) panel makers could increase prices by nearly 8 percent in the second half of this month as a component shortage is intensifying ahead of back-to-school demand and strong TV replacement demand in emerging markets like China, US market researcher DisplaySearch said in its latest report.
An unresolved panel shortage, primarily the result of insufficient supply of glass substrates, could make room for the world’s major panel makers, especially those from Taiwan, to raise prices more aggressively as they hoped to end several quarter losses in the July-to-September period, the Austin, Texas-based researcher said.
LCD panels are used in PC monitors, notebook computers and slim-screen TVs. For a mainstay 32-inch TV panel, the price for a panel is expected to climb by US$15, or 7.7 percent, to US$210 per unit in the second half of this month from the first half, when the price increase was only 2.6 percent, DisplaySearch said.
To cope with a severe industrial downturn from to glut and a bleak economy, major panel makers and component suppliers have more than halved their output. But with the recovery seen recently, manufacturers found they were unable to restore production fast enough to meet a sharp rise in demand for flat panels.
“TV panel supply still cannot meet demand. Demand from China remains strong and the component supply shortage limited TV panel supply availability in July,” DisplaySearch said.
Demand in Europe and North American, the world’s biggest TV markets, however, was showing new signs of slowing and could cause excessive inventory, the report said.
Even so, DisplaySearch said prices of flat panels used in notebook computers continued to rise.
“Some top tier brands want to secure panels to prepare for seasonal demand, so they are willing to pay more to get enough allocation,” the researcher said.
A 15.4-inch notebook panel and a 19-inch monitor panel is expected to see prices rise 7.4 percent and 8.1 percent to US$58 per unit and US$80 respectively in the third and fourth weeks of this month, compared with the first two weeks, the report said.
The world’s biggest glass substrate supplier, Corning Inc, last week raised for the second time its projected output in the second quarter, saying its quarterly output had doubled from the first quarter rather than increase by 75 percent as previously forecast. The forecast did not include Corning’s glass venture with Samsung Electronics Co, Samsung Corning Precision Glass Co Ltd.
But the shortage of glass substrates could remain a handicap to increased panel production and continue pushing panel prices go higher, a situation both AU Optronics Corp (友達光電) and Chi Mei Optoelectronics Corp (奇美電子) said recently might persist into September.
Taiwan’s technology protection rules prohibits Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) from producing 2-nanometer chips abroad, so the company must keep its most cutting-edge technology at home, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. Kuo made the remarks in response to concerns that TSMC might be forced to produce advanced 2-nanometer chips at its fabs in Arizona ahead of schedule after former US president Donald Trump was re-elected as the next US president on Tuesday. “Since Taiwan has related regulations to protect its own technologies, TSMC cannot produce 2-nanometer chips overseas currently,” Kuo said at a meeting of the legislature’s
TECH WAR CONTINUES: The suspension of TSMC AI chips and GPUs would be a heavy blow to China’s chip designers and would affect its competitive edge Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, is reportedly to halt supply of artificial intelligence (AI) chips and graphics processing units (GPUs) made on 7-nanometer or more advanced process technologies from next week in order to comply with US Department of Commerce rules. TSMC has sent e-mails to its Chinese AI customers, informing them about the suspension starting on Monday, Chinese online news outlet Ijiwei.com (愛集微) reported yesterday. The US Department of Commerce has not formally unveiled further semiconductor measures against China yet. “TSMC does not comment on market rumors. TSMC is a law-abiding company and we are
FLEXIBLE: Taiwan can develop its own ground station equipment, and has highly competitive manufacturers and suppliers with diversified production, the MOEA said The Ministry of Economic Affairs (MOEA) yesterday disputed reports that suppliers to US-based Space Exploration Technologies Corp (SpaceX) had been asked to move production out of Taiwan. Reuters had reported on Tuesday last week that Elon Musk-owned SpaceX had asked their manufacturers to produce outside of Taiwan given geopolitical risks and that at least one Taiwanese supplier had been pushed to relocate production to Vietnam. SpaceX’s requests place a renewed focus on the contentious relationship Musk has had with Taiwan, especially after he said last year that Taiwan is an “integral part” of China, sparking sharp criticism from Taiwanese authorities. The ministry said
US President Joe Biden’s administration is racing to complete CHIPS and Science Act agreements with companies such as Intel Corp and Samsung Electronics Co, aiming to shore up one of its signature initiatives before US president-elect Donald Trump enters the White House. The US Department of Commerce has allocated more than 90 percent of the US$39 billion in grants under the act, a landmark law enacted in 2022 designed to rebuild the domestic chip industry. However, the agency has only announced one binding agreement so far. The next two months would prove critical for more than 20 companies still in the process
RSS