What They Say
Trendforce reported that a shortage of display driver chips is driving LCD makers to focus on monitor and notebook panels, which are more profitable than TV panels and larger TV panels, which can generate more revenue for the same number of driver chips. Trendforce also forecast how it saw the future of monitor supplier shares.
The firm also said that AUO is closing in on 50% share for curved monitor panels, and is seeing strong demand. Innolux is pushing larger monitor panels, IPS and gaming products to optimise its profitability.
HKC is getting ready to significantly boost its monitor panel sales, which are expected to be helped by a willingness to supply open cell panels which should be attractive to the Korean monitor makers as well as ODMs.
BOE, meanwhile, will boost its capacity for monitor panels with the acquisition of the CEC Panda G8.5 production capacity.
What We Think
A number of years ago, monitor panels were the lowest revenue application, now its TV. Being the lowest revenue application leads to what I have called the whiplash effect – if you are in the business, you are on the end of the whip. When supply is tight, it’s tightest for you and the price increases are the highest, while when capacity eases, panel makers pile in with panel price reductions to drive volume. The last year and the next year or two look better for monitors! (BR)
