IN 2023, THE FIFTH-GENERATION LINE WILL INCLUDE LCD PANELS ABOVE SUPPLY AND DEMAND ARE STILL TIGHT

According to the TrendForce display research report, panel manufacturers set a 2023 target to turn losses into profits in the second half of the year, strictly control production levels, and maintain the on-demand production strategy. It is estimated that Gen5 (inclusive) and above LCD displays in 2023 The industry supply-demand ratio will fall to 2.1%, which is lower than the supply-demand balance range of 3-5%, and the overall market is in tight supply.

Under the influence of high inflation, sales of TV will not be good in 2022. In addition, large format TV panels will affect the brand layout due to high freight costs. Due to inventory and operational pressure, the production level will be adjusted in a large scale from the third quarter of 2022. After two quarters of control, panel manufacturers' inventory levels, whether TV or IT, have dropped significantly since the first quarter of 2023. Although the first quarter coincided with the traditional weak demand, the supply-demand ratio increased to 0.6% compared to -7.1% in the fourth quarter of last year, and there is still some gap with the supply-demand balance of 3%, but the inventory level has been significantly reduced compared to the previous two quarters, setting the stage for subsequent panel price increases.

According to TrendForce statistics, in the second quarter, the production area of large generation line glass increased by about 13% compared with the previous quarter, but at the same time, the demand for inventories for various applications also increased with a quarterly increase of about 13.6%, and the supply-demand ratio was about 0.5%. It was almost unchanged at 0.6%. As supply in the market remains tight, quotations are also supported by LCD TV, which accounts for 80% of production capacity in the plate market.

In the third quarter, the financial pressure on panel manufacturers eased slightly compared to the first half of the year, and their production readiness was higher than in the second quarter. However, they have not yet achieved the goal of making a profit in a single quarter. Production control is still in progress. The tight supply and demand situation is expected to ease in the third quarter. the supply/demand ratio is estimated to be around 3.3%, reaching the range of equilibrium between supply and demand. The fourth quarter is the final spurt for shipments this year. If some panel manufacturers can make profits in a single quarter, it is not impossible that in the fourth quarter, the production settings of different panel manufacturers will be different, and the supplyand demand ratio may rise to 3.7 %, which is still within the range of supply/demand balance.

It is worth noting that TrendForce believes that the current supply and demand in the panel market TV does not fully reflect the actual situation, and most of it is the result of careful control of production capacity by panel manufacturers in the past year, so it is still necessary to focus on panel manufacturers in the second half of the year. Mobility rate and changes in terminal sales.