UPDATED. 2024-06-14 08:17 (금)
LCD Panel oversupply to continue to 2023: TrendForce
LCD Panel oversupply to continue to 2023: TrendForce
  • Gijong Lee
  • 승인 2022.10.12 09:54
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Factory operation rate could further drop in Q4
Image: Samsung Display
Image: Samsung Display

The current oversupply of liquid crystal display (LCD) panels is expected to continue through 2023, analyst firm TrendForce said in its latest forecast.

LCD panel prices had increased from June 2020 through the first half of 2021, the firm said, spurned by high demand for consumer electronics from Covid-19.

But it began to drop during the second half of 2021, causing panel prices to drop even lower than pre-pandemic levels, TrendForce said.

Low consumer demand will continue in 2023 and the amount of supply could actually increase even further, the analyst firm said.

The global economic slowdown, geopolitical uncertainties and inflation continue to dent demand, it said.

In supply, while LG Display could halt production at its P7 factory in Paju during the first quarter of next year, CSOT’s start of operation of its Gen 8.6 T9 factory could increase panel supply further than the current state, TrendForce said.

The analyst firm also said that LCD factories that use Gen 5 substrate or above could see their operation rate drop to 60% during the fourth quarter, which will be the lowest in ten years.

Display panel makers have been strict in their production management following their poor earnings in the second quarter, TrendForce said.

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