China-based research company, Sigmaintell Research has forecast that supply demand balance for smartphone displays will get closer to equilibrium in the third quarter of 2018, as seasonal demand patterns drive volume growth to around 530 million in Q3. At the same time, on the supply side, there has been some tightening as panel makers introduce wide format and notched panels. Flexible OLED capacity will continue to grow by as much as 30%, although overall supply growth will be around 8%.
The demand for better quality panels with very narrow borders and requiring LTPS technology will mean closer balance for that technology. The company also pointed to limited capacity in driver chips, especially TDDI drivers, which integrate the touch functions. The result is that balance will be closer and oversupply more limited than it has been in LTPS.
Balance in the market is usually at around 5% to 10% oversupply.
Analyst Comment
Other sources in the region suggest that the increasing tightness will allow some price increases in the small panel segment in Q3. (BR)
