The LCD panel oversupply market performance is not optimistic

It is reported that, due to display and LCD TV (LCD TV) the increase in demand, while the panel factory to add production capacity and slow, so the second quarter when the supply and demand gap has been reduced to 2.4%, of which 17 inch panel prices also appeared signs of rising. However, with the new panel production capacity in the second half of 2005 have been opened, the oversupply situation has become more serious. According to the latest report quoted Reuters iSuppli pointed out that the global TFT LCD panel Market in the second half of 2005 oversupply situation will turn again serious. Taiwan believes that the second half of the panel panel plant, the supply and demand imbalance forecast gap appeared the reason mainly lies in the second half of 2005 for how many LCD TV demand forecast is different, like a factory for LCD TV demand forecast, it is more obvious than the South Korean manufacturers a lot of optimism, even forecast drop nearly 4 million units, and took office at a factory optimistic numbers as the basis for capacity expansion, once the LCD products demand as expected, it is bound to set off the second half of the large size panel than originally expected to pile up in excess of requirement.

Market research firm iSuppli said, because LCD TV and desktop computer monitor system of production and sales terminal system is slower than expected, the second half of this year, the panel over supply situation will be more severe than expected, then the market shipments will not optimistic.

ISuppli's report predicts that the third quarter of this year, the global supply of large-size LCD panel will exceed the demand of up to 5%, higher than the original estimate of the 3.8% quarter of the oversupply in the fourth quarter also increased from 4.2% to 6.2%. ISuppli said: over supply will lead to LCD TV and desktop computers with LCD panel continued to decline in the next few months.

There are some panel manufacturers said that the second half of the panel supply and demand imbalance is expected to fall due to the second half of 2005 the number of LCD TV demand forecast. On the basis of optimistic forecasts, some manufacturers will expand production capacity in Taiwan, once the end product demand is not as expected, is bound to lead to the second half of the larger size of the oversupply gap exceeded expectations.