What They Say
Sigmaintell published a detailed analysis of the trends in TV panel pricing and supply. The firm said that 65.2 million units were shipped in 21Q1, an increase of 3.6% YoY; the shipment area is 41.3 million square metres, an increase of 10.3% YoY. Average panel sizes were up 1.8″ in 2020 and are forecast to be up 1.5″ in 2021.
The firm pointed out the huge increases in panel pricing seen over the last year or so (chart below).
- BOE shipped 15.2 million panels in Q1 and it was top for volume and area (>10 million m²)
- TCL CSOT shipped 10.15 million panels and 7.17 million m². Taking over the fab in Suzhou at the end of Q1 will allow a further increase
- HKC reached 9.58 million units with 4.11 million m², going from eighth place a year ago to fourth this time. Further expansion is planned, by 69.3% year on year in Q2. This may be impacted by a less stable supply chain than for BOE or CSOT
- LG declined slightly in Q1 compared to 2020, while SDC was 62% down YoY. SDC’s G7 fab has gone, but the G8.5 will continue if demand remains strong.
- Taiwanese makers have been moving to differentiated product strategies and are also developing IT panel production.
The firm expects panel pricing to rise again slightly in Q2 although supply demand for 32″ to 43″ panels is balanced. The firm expects weaker TV demand in the US and Europe as travel resumes in the second half of the year. However, IT demand remains strong and overall supply demand will depend on the inventory policies of brand owners. Larger sizes should stabilise in price in Q3
What We Think
The firm has the same view of panel pricing trends as we reported from DSCC. (LCD Industry Stability Could Break Out….) (BR)