What They Say
DSCC said that the high LCD pricing and strong performance by LCD makers has meant that capex planning has been strongly boosted and the firm has upgraded its forecast for equipment spending by 55% to $20.7 billion from 2020-24. It means that overall equipment capex spending over the period will go up by 10% to $64 billion.
The boost in revenues means that the forecast for overall revenues this year for LCD is $106 billion, up 25%, while overall OLEDs will grow to $144 billion.
The three key investors will be BOE, CSOT and HKC, although most of the increase will come from the latter two.
As a result of the recent surge in LCD equipment spending, total display equipment spending on a move-in basis from 2019-2023 now looks quite consistent ranging between $13 billion and $15 billion per year. OLEDs are expected to lead with a 60% share with LCDs at 40%.
What We Think
The relative stability of spending is likely to be good news for the industry in general, although specific equipment makers and types of equipment are likely to see more widely varying year on year sales. (BR).
