April 20, 2024

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[THE INVESTOR] Demand for large-size liquid-crystal display panels will be above the seasonal average in the first half of this year, largely due to Samsung Display’s plant closure and Sharp’s decision to halt supply of panels to Samsung Electronics, WitsView, affiliated with market research firm TrendForce, said on Jan. 3.

The firm said the supply situation in the latter half of the year will become more uncertain, citing the glut ratio at about 3.2 percent through the year. 

Related:
LCD prices to soar next year following Sharp’s supply halt to Samsung


The first six months of a year are usually considered as off-season for panel sales. But this year the situation is tricky.

Samsung Electronics, the world’s largest TV maker, is making all-out efforts to fill up the panel loss, seeking help from other display makers, including LG Display. Its rivals are also adjusting their panel purchasing strategies.

“The anxiety over a possibly supply gap among TV brands will inadvertently prop up demand and tighten supply during the off-peak period of the first quarter,” WitsView said.

The firm predicts the large-size panel market will experience limited downward price corrections.

“Even though branded device vendors will use the second quarter to reduce their excess inventories, they will also need to prepare for the series of major promotional events that will take place the year’s second half,” the firm said.

“Some buyers may even choose to place orders in advance to avoid the risk of panel shortage in the busy season.”

By Lee Ji-yoon (jylee@heraldcorp.com)