Global TFT-LCD Glass Input to Reach 37.8 M. Square Meters in Q4: DisplaySearch

Global thin film transistor-liquid crystal display (TFT-LCD) glass input peaked in the second quarter of 2011, achieving a record 42.1 million square meters, but then fell to 36.5 million square meters in the third quarter, and is expected to reach 37.8 million square meters in the fourth quarter, according to NPD DisplaySearch.

In response to falling prices of large-sized thin film transistor-liquid crystal display (TFT-LCD) panels in 2011, panel makers have minimized their second-half production, but preparation for 2012 models and gradual clearing of supply-chain inventories are encouraging makers to take a more positive stance on their production strategies, the international display market research firm explained.

In the first quarter of 2012, panel makers are expected to increase glass input by 5%, to 39.8 million square meters. The forecast capacity utilization rate is 77% in the first quarter of 2012, which is 7% higher than previously expected. This is partly based on expectations that prices have bottomed out in this cycle, DisplaySearch said.

Also, panel makers are planning for new models, such as larger-sized multi-function monitor panels, ultra-slim notebook PC panels, new TV panel sizes including 39-inchW(wide), 43-imchW, 48-inchW and 50-inchW with cost effective cold cathode fluorescent lamps (CCFL) and light-emitting diode (LED) backlights, and slim bezels. However, with 2012 market demand still unclear, panel makers foresee the possibility of adjusting capacity utilization again in the first quarter of 2012.

Shawn Lee, Senior Analyst for NPD DisplaySearch, said, that increasing production does not necessarily increase shipments, as panel prices are close to cash costs in many cases. However, improved inventory and price outlooks, as well as the launch of new panel models, are leading panel makers to be more optimistic. "Other factors leading to the increased production forecast include the need to increase utilization rates in order to cover depreciation costs, and the fact that new panel producers in China are starting to ramp up their fabs, contributing to the increased input,” Lee added. He concluded that after a long oversupply period, panel makers are still cautious about glass input and utilization rates, and they do not plan to increase utilization to more than 80% in the first quarter of 2012."