LCD TV panel market set for supply/demand balance in in 2018 | 4K/UltraHD | News | Rapid TV News
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Increases in both new-generation fabs’ yield rate and production capacity will create a reshaping of the LCD TV panel market through to 2019, says research company WitsView.

WitsView 3Jan2018The analyst believes that while the price decline in the TV panel market – that is a 20-40% downward correction in TV panel prices during 2017 — will be easing in this year's first half, the first quarter of 2018 will still see the price trend on a gradual downward slope. It noted that the LCD panel market is expecting several new large generation fabs in 2018, notably BOE’s world-first Gen 10.5 fab and CEC-CHOT’s Gen 8.6 fab and Gen 8.6+ fab of CEC-Panda Chengdu which will all go into operation this year.

BOE’s fab in Hefei is expected to enter mass production by March 2018. The major products will be large-size TV panels of 65” Ultra HD 60Hz and 75” Ultra HD 60Hz, intensifying, said the analyst, competition in large-size TV panel market. In the production of 65” TV panels, for instance, current Gen 6 fab cuts per glass substrate into 2 panels, while Gen 8.5 fab cuts into 3. In Gen 10.5 fab, however, the number rises to 8, increasing the productivity of 65” TV panels significantly.

Ultimately, WitsView says that falling panel prices will spur promotions in the end product market and that a stock-up demand from TV brands will be warmer in this year’s second half compared with the second half of 2017. The supply and demand of TV panels are also expected to reach a more balanced state. The research indicates that the risk of serious oversupply in the TV panel market will most likely to happen later in 2019.

Anita Wang, senior research manager of WitsView, noted out that the new fab will have limited input in early stages, and will need time to improve field rate and production capacity. She estimates that they will only contribute to 3% of the global glass input for large-size LCD panels. And the figure is expected to raise to 6-8% in 2019.

WitsView forecasts that even though BOE’s Gen 10.5 fab will target at more than two million pieces for the production of 65” panels, it is questionable whether this goal can be achieved as it still depends on the improvement in yield rate. It believes that the Gen 10.5 fab will not have large-scale influences on the overall supply in the industry this year, but that BOE will impact the market in 2019 with its shipments expected to reach 3–4 million pieces. WitsView predicts that by 2020 BOE is will surpass panel makers in South Korea and record the highest shipments for 65” panels, with its market share reaching around 37%. In comparison, the market share of Taiwanese panel makers for 65” panels is projected to drop to 18% in 2020 without any capacity expansion.