A recent report by Omdia’s Display Production & Inventory Tracker shows that global display fab capacity utilization is recovering due to increasing orders of LCD TVs, notebooks, monitor panels, and smart phone LCD panels. However, OLED fabs are still facing challenges in increasing their capacity utilization, with an average OLED fabs capacity utilization expected to be under 60% in the first half of 2023. The reason for this is purely diminished demand for OLED products.
LCD fabs are gradually increasing their capacity utilization, but most are setting a ceiling of 80% utilization rate even with increasing orders. OLED TV panel orders are insufficient to sustain high-capacity utilization rate for Gen 8.5 OLED fabs, and some Gen 6 OLED fabs in China are struggling with uncertain orders and low throughput.
