Ad
Ad
Ad
© ermess dreamstime.com Components | November 02, 2012

Average utilization of panel makers to reach 90%

As panel makers have started differentiations of product combinations and production strategies in 2012, couple with Chinese TV brands’ aggressive procurements encouraged by subsidy policies, the overall panel supply shows signs of tightening in 2H’12, and panel prices see the stabilization and even the upward trend.

It is forecast the utilization of the above Gen 5 fabs would be around 82% in 4Q’12. As the new sized products are revealed, in the condition of limited capacity and profitability, WitsView has observed a squeezing effect occurring between the capacities of new sizes and traditional sizes as well as leading to the price increases of certain sizes. In addition, large-sized panel prices staying at the historical low increase clients’ procurement intention, helping the average panel utilization to surge from 73% in Q3 to 82% in Q4. WitsView further indicates that, from 2012, in order to raise added values to products, panel makers have begun to apply new process and new technologies, including thin glass substrate, wide view angle, Oxide TFT process, and high resolution 4K2K panel. The imperceptible capacity loss caused drags down the overall effective capacity by nearly 5% and is also a major factor to lift utilization. Looking ahead to 2013, as no significant available capacity would increase globally, the competition between sizes would incandesce on concern of capacity and profitability. Besides, the panel demands move toward large sizes, WitsView indicates that, the average panel utilization of the above Gen 5 fabs would continuously climb and reach to 87% in 4Q’13. Meanwhile, if panel makers lift the input proportion of high end products, the capacity would see a larger scale of loss, leading to a tight situation of panel supply that hasn’t been seen for years.
Load more news
June 25 2019 8:13 pm V13.3.22-2