LCD TV panel production will be hit by COVID-19

A report by Omdia stated that due to the impact of the coronavirus pandemic, global manufacturing of LCD TV panels has been expected to decline around the next year after a significant increase in the past few years.

With COVID-19 spreading all over the world, Korean suppliers plan to withdraw completely from South Korea's LCD TV panel production in 2020. This will cause Omdia to lose 57 million square meters of production capacity, or 17% of the total production capacity by next year.

Omdia said that demand for new LCD TV panels is also expected to decline by about 10% from the 2019 figure. Omdia estimates that manufacturing capacity will only increase by 2% from 2019 to 2021, and from 2013 to 2020, it will increase by nearly 50%.

Although the factory is currently suffering setbacks related to COVID-19, it is expected to continue to increase factories in China.

Omdia predicts that unit demand will begin to recover after 2021, but it may take two to three years to reach 2019 levels. However, this can be helped by the demand for larger-size LCD TV panels, whose average panel size has increased from 45.4 inches to 49.2 inches.

Charles Annis, senior director of Omdia, said: "Previously, 2020 was expected to be a period of major changes in the FPD (flat panel display) industry." "However, now, as COVID-19 and Korean panel makers are faster than the most radical situation, Suddenly withdrew from

LCD TV panel production, it now appears that the damage suffered this year is more severe than imagined a few months ago.

"If a V-shaped recovery in LCD TV demand can be achieved, then the combination of a larger average size and the smallest capacity increase is expected to bring large-area FPD oversupply to an extremely low level of 5% in the third quarter of 2021." An Nice continued.

"This is a positive leading indicator that can bring higher pricing and better financial performance to panel manufacturers in 2021 and beyond."