Innolux’s president, Wang Jyh-chau, has said that the company expects its LCD panel shipments and ASPs to fall QoQ in Q1’16. Because of this, continued operating losses are forecast for the corresponding business operations.
Total area of large-size panels to be shipped in Q1 is expected to fall by almost 10% QoQ, with ASPs declining between 5% and 8%. Small-to-medium-size panel area will slip 15%-20%, but ASPs will remain unchanged.
Due to expansion of Chinese panel makers’ production capabilities in 2015, global panel supply will slightly exceed demand this year, said Wang. TV panels in particular will see flat shipments, but total area will grow between 7% and 9%. Global demand will therefore hinge on growth in average TV panel size.
Global shipments of UltraHD TV panels are forecast to rise from 30-31 million units in 2015 to 50 million in 2016. Innolux expects that more than 50% of its 50″+ TV panels shipped in Q1 will be UltraHD.
Innolux is currently building both a G6 LTPS fab (with Foxconn) and a G8.6 fab in southern Taiwan. Production will begin in Q2’16 and the second half of 2016, respectively. The larger factory will produce IGZO panels and units based on thin glass substrate technology. A budget of NT$35 billion ($1 billion) has been set aside for capital expenditure this year (a 43% YoY rise).
In closing, Wang said that Innolux expects demand for OLED panels in high-end smartphones to take off in 2017. Therefore, the company will continue its flexible OLED R&D.
