Increasing losses drive panel makers to make massive capacity cuts | 4K/UltraHD | News | Rapid TV News
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Research from WitsView has revealed that TV panel prices generally have been lower than the cash costs leading to panel makers' current loss of money to expand continually.

SamsungOLED 18Dec2017The study found that Korean, Taiwanese and Chinese panel makers have all started to lower their utilisation rates (UT) of TV panel products from September 2019 in order to improve what WitsView said was a severely unbalanced supply and demand and stabilise prices. It also pointed out that in the wave of capacity reduction, Korean panel makers decreased their capacities the most among panel makers.

This was particularly true for Samsung Display (SDC) as TV brands' procurement demand has suddenly dropped in the entry of Q419, and the company massively moved down its UT of Korean Gen. 7 and Gen. 8.5 fabs in September and October. SDC's Gen. 7 input is predicted to drop by more than 50% in September and October, and input of its Gen. 8.5 fabs is expected to fall by 30–40%.

LG Display also (LGD) plans to shut down some capacities of Gen. 7.5's Fab P7 and Gen. 8.5's Fab P8. The Fab P8 is projected at only have 25% of capacity by the end of 2019, and WitsView pointed out that its Fab P7 is rumoured to shut down one-third of capacity in October.

Taiwanese panel maker AUO also began to reduce its input in Gen. 8.5's Fab 8A and Gen. 6's Fab 6B. The Fab 8A's input is estimated to remain at only 50% in 4Q19 primarily because of bad demand for 55" panel prices. Its Fab 6B is predicted to reduce input by 20% in the fourth quarter of 2019 as it throttled back on the input of 65" displays.

China's panel makers were also revealed in the survey to have suffered from the TV panel segment's loss of money even if their capacity reduction scales have been lower than that of their rivals. CSOT modified its machinery in Gen. 8.5's Fab T2 and from September to the end of 2019, the input of Fab T2 is expected to drop by 20%. Gen. 10.5's fab in Hefei of BOE Technology (BOE) and CEC-CHOT's Gen. 8.6 fab have both reduced their input by around 20% until the end of 2019. Sharp's Gen. 10.5 fab in Guangzhou temporarily paused its plan to enter mass production phase in 2019 because, said WitsView, demand in the TV market has been weak.