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

CTOnews.com May 8 news, according to the "TrendForce set" Wechat official account released, the study said that the obvious slowdown in demand after the epidemic, coupled with the continued release of new capacity, led to the imbalance between supply and demand in the panel market. In order to solve the dilemma, the panel factory began to reduce the production line farming rate to less than 70% since the second half of 2022, in order to effectively eliminate inventory. (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. )

TrendForce Jibang Consulting said that with the recent pick-up in demand for TV panels and the rise in TV quotations, it is estimated that the growth rate of LCD production lines (in terms of area) above Gen5 (including) is expected to rise to 77% in the second quarter, but the actual output area is still significantly lower than in the same period last year after LG display (LG Display) converged P6, P7 and Guangzhou LCD production lines.

The current pick-up rate of the panel factory comes from the actual order demand, so TrendForce Jibang Consulting believes that the supply-demand ratio of the LCD market in the second quarter should be maintained at a healthy water level, and the panel factory still needs to maintain careful control and rapid response strategy in the second half of the year to maintain the balance of the market.

From the perspective of each generation line, the TV panel library of the panel factory has returned to a healthy water level after more than half a year of production regulation. In the first quarter of this year, as Chinese brand factories launched May 1 and 618 promotional stock ahead of time, it not only led to a pick-up in demand, but also pushed up TV panel quotations to rebound ahead of schedule, and the price upward trend in the second quarter remained unchanged. TrendForce Jibang Consulting estimates that more than 90% of the production capacity is used in the Gen10.x production line, which mainly produces TV panels, and its production line growth rate will grow by more than 10 percentage points over the first quarter to 83.2%.

As for the Gen8.x production line, due to the hot demand for LCD monitors and pen panels during the epidemic, most panel factories had moved part of the TV production capacity of the production line to the production of IT projects at that time. Although the rebound in TV panel demand also contributed to the recovery of Gen8.x production rate, due to the lack of significant increase in demand for IT products, the growth rate was only 7.6 percent higher than in the first quarter, reaching 79.4 percent. With regard to the production line below Gen7.5 (including), driven by the increasing demand for mobile phone panel maintenance market and the increase in demand for some IT panels compared with the first quarter, it is estimated that the growth rate will rise back to 69%, and its growth is still viewed conservatively.

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