Oversupply to Overshadow LCD Market in 2016
January 26, 2016 | IHSEstimated reading time: 1 minute
The ongoing issue of liquid crystal display (LCD) oversupply - exacerbated by China’s aggressive investment in production capacity as well as high fab utilization -- will continue well into 2016. The supply of large-area LCD is expected to be 14 percent greater than demand in 2016, up from 12 percent in 2015, according to IHS Inc., the leading global source of critical informational and insight.
Chinese LCD suppliers are maintaining high manufacturing targets and expanding capacity, partly thanks to Chinese government subsidies for startup and infrastructure costs. On the other hand, LCD TV demand, particularly in Russia, Brazil and other emerging countries, has not grown as expected, because of currency depreciation and slow economic recovery.
“Panel prices have declined to the degree where the break-even point for manufacturers was reached in the fourth quarter of 2015,” said Yoshio Tamura, displays director for IHS Technology. “Due to declining value of currencies in emerging countries, demand for higher priced LCD TVs will not rebound in 2016. Even so, Chinese panel makers are not planning to lower fab utilization anytime soon to expand market share, which means large-area LCD manufacturers will be in the red in 2016.”
Chinese LCD suppliers are expected to adjust fab utilization in the middle of 2016, according to the IHS Display Supply Demand & Equipment Tracker, and LCD oversupply will be eased in the second half of 2017. “If Chinese manufacturers don’t lower their fab utilization within 2016, there will be an even greater negative impact on global LCD suppliers’ profit margins,” Tamura said.
About IHS
IHS is the leading source of insight, analytics and expertise in critical areas that shape today’s business landscape. Businesses and governments in more than 140 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs approximately 8,600 people in 32 countries around the world.
Suggested Items
PCBflow Helps Designers Choose Best Manufacturer for the Job
03/28/2024 | Andy Shaughnessy, Design007 MagazineI recently spoke with a few technologists who have first-hand experience with PCBflow: Susan Kayesar, technical product manager with Siemens; Evgeny Makhline, CTO of Nistec, a CEM based in Israel; and Peter Tranitz, senior director of technology solutions and leader of the IPC Design Initiative. They explain how PCBflow functions, from the designer’s and manufacturer’s viewpoint, and how this database helps break down the wall between these stakeholders.
Cogiscan Collaborates with Koh Young to Unveil How Factory Insights Software Transforms Data Into Action at IPC APEX EXPO
03/28/2024 | Koh YoungKoh Young, the industry leader in True3D measurement-based inspection solutions, is excited to announce Factory Insights, the latest offering from Cogiscan, will be demonstrated alongside KSMART in Koh Young booth 2112 during IPC APEX Expo.
Ambiq Apollo510 Delivers 30x Power Efficiency Improvement to Unleash Endpoint AI
03/27/2024 | AmbiqAmbiq, a technology leader in exceptionally energy-efficient semiconductors for IoT devices, is introducing the new Apollo510, the first member of the Apollo5 SoC family, which is uniquely positioned to kickstart the age of truly ubiquitous, practical, and meaningful AI.
Suppliers Aim to Raise Contract Prices, But With Uncertain Demand, 2Q24 DRAM Price Increase Expected to Narrow to 3–8%
03/26/2024 | TrendForceTrendForce’s latest report reveals that despite DRAM suppliers’ efforts to trim inventories, they have yet to reach healthy ranges. As they continue to improve their lose situations by boosting capacity utilization rates, the overall demand outlook for this year remains tepid.
Solderstar to Spotlight the Reflow Shuttle with O2 at IPC APEX EXPO 2024
03/11/2024 | SolderStarSolderstar will introduce the newly launched Reflow Shuttle with O2 measurement module. This product promises to redefine soldering process optimization, offering manufacturers unparalleled control and precision.