What They Say
DSCC posted a blog that included a forecast that despite the substantial TV panel price increases in the second half of 2020, prices are set to rise by an average of 9% in Q1 2021. Factors include robust demand and concerns about glass shortages. The prices are expected to peak in February or March before starting to decline again. Prices increased in Q4 for all sizes of TV panels, with massive % increases in sizes from 32” to 55” ranging from 28% to 38%. Prices for 65” and 75” increased at a slower rate, by 19% and 8% respectively, as capacity has continued to increase on those sizes with Gen 10.5 expansions.
Prices for every size of TV panel will increase in Q1 at a slower rate, ranging from 4% for 75” to 13% for 43”.
The post also looked at the long term trend and found that prices of TV sets have increased in H2 of 2020, but have not got back to historic levels. They are expected to hit just 70% of 2014 prices, but up from just over 40% at the worst at the beginning of 2020.
Larger increases for mid-sized sets has helped AUO, Innolux and LG Display which do not have G10 capacity.
What We Think
The strong price rises help to explain why Samsung & LG Display have deferred the closures of their LCD TV panel fabs. In the cyclical LCD business, you have to get your revenues when you can! (BR)
