Shulou(Shulou.com)11/24 Report--

CTOnews.com, April 19-the total capacity utilization of global display panel manufacturers is rebounding from 66 per cent in the first quarter of 2023 to 74 per cent in the second quarter of 2023, thanks to a surge in orders for LCD televisions, laptops, display panels and smartphone LCD panels, according to a new study by Omdia's display production and inventory tracking report (Display Production & Inventory Tracker). However, OLED panel makers still face challenges in improving capacity utilization, with the average capacity utilization of OLED producers expected to be less than 60 per cent in the first half of 2023.

Oversupply in 2022 severely damaged capacity utilisation at LCD and OLED plants. Following the dismal capacity utilization in the first quarter of 2023, LCD panel manufacturers are now expanding their investment in glass substrates from the second quarter of 2023. LCD panel manufacturers are strictly controlling capacity, gradually and cautiously improve capacity utilization in order to maintain panel prices, this situation is particularly evident in Chinese mainland panel manufacturers.

In the second quarter of 2023, even with increased orders and increased end-market demand, most LCD manufacturers limited capacity utilization to less than 80 per cent.

Omdia analysts said: "compared with mature and more robust LCD manufacturers, OLED panel factories have low capacity utilization. In particular, it is affected by the following production parameters: the process flux of the TFT array backplane, the OLED evaporation process cycle, complex product switching, the time required for the touch sensor process and the variability factor of the OLED modular process."

According to these parameters, generally speaking, the capacity utilization described by LCD manufacturers can be defined as 100%, but the so-called full capacity movement of OLED panels is generally 80% to 90% of the total design capacity. "the problem facing OLED at present is weak demand, not these parameters that affect capacity utilization." (CTOnews.com Note: "farming rate" is called activation or utilization in English, which refers to the proportion of time taken by the equipment to create value in the time that can be provided. )

Omdia predicts that the market demand for smartphone OLED panels has not yet fully recovered, and OLED TV makers are also facing the challenge of weak market demand. Orders from LGE, Sony, Panasonic, TPV, Hisense and Samsung are insufficient to support capacity utilization in the 8.5G OLED plant, while some flexible OLED 6th generation factories in Chinese mainland are also facing unstable orders and low capacity utilization.

"while the rebound in LCD has been watched and has had a significant positive impact on supporting LCD prices and capacity utilisation, the recovery in utilization by OLED panel factories still needs to look forward to a recovery in demand for more high-end electronics consumption," analysts said.

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