What They Say
DSCC published a blog post highlighting that the LCD industry is moving into oversupply as demand for TVs in the US has started to weaken as the US has rolled out vaccinations. Consumers are starting to spend their money on travel and other out-of-home activities, rather than TVs. DSCC believes that Q2 will be back at 2019 levels, down 24% YoY from 2020.
The article also said that DSCC’s forecast for LCD supply growth had gone from 2% to 5% and there are also rumours about BOE building a third Gen 10.5 fab to be called B20 or B21, with mass production planned for 2023.
What We Think
So, the wheel turns again, and the hopes expressed at Display Week that the industry was going to put an end to the cycle seem to be disappearing. No real surprise, but it was a nice thought while it lasted. Given that we also reported that India is looking at getting into the industry, we may be about to go around another of the cycles. (India Eyes LCD Investment) In terms of when prices for TV panels will have peaked, much may depend over the next few months on whether things in the chip business start to ease. Seasonally, Q3 is the peak for panel production for TV and things may stay firm until after that quarter has passed. (BR)
TV Shipments in North America by Quarter, 2018-2021 Source:DSCC
