What They Say
DSCC published a blog article that highlighted that LCD prices have now got to the point ‘toward … or even below cash costs’ and makers have started to reduce fab utilisation. However, there are capacity increases coming, so the pressure for lower prices will continue. . In Q4’21, total TFT input for all display makers was down 2% Q/Q and up 9% Y/Y at 86.3 million m², and in the current Q1’22, the firm expects total TFT input to be up 1% Q/Q and up 8% Y/Y to 87.1 million m².
After a COVID-19 induced slowdown in the first half of 2020, fab utilization has been particularly strong in Taiwan and China, as shown in the first chart here. Although utilizations in Taiwan decreased slightly in Q4’21, they remained above 90% for the seventh straight quarter. Worldwide utilization in Q4’21 dropped two points to 86% and is expected to fall another point in Q1’22 to 85%, the lowest level since the early days of the pandemic in Q2’20.
Looking at panel makers by maker, in Q2 2022 DSCC expects that BOE will represent 26% of industry TFT input, with China Star another 15% and HKC in a virtual tie with Innolux for #3 at 11% each.
As well as the charts below, the article covers TFT input by region and with details of different makers in China. By the second quarter of 2022, China will represent 64% of all industry TFT input, it said.
There is also an analysis of utilisation by panel type and application.
What We Think
I must say that although intellectually I understand it, I still have not fully absorbed the extent to which BOE is dominating the capacity of the LCD industry now, shown in the chart below. (BR)
TFT Quarterly Fab Utilization by Region, 2018-2022 – Source: DSCC All Display Fab Utilization Report
Quarterly TFT-LCD Input by Panel Maker, 2019-2022 – Source: DSCC All Display Fab Utilization Report
