Although South Korean and Chinese TV manufacturers bought fewer panels in Q2 than forecast, demand is expected to recover in Q3, according to IHS Markit. While South Korean purchases were down 4% QoQ and YoY, China’s top six TV makers are seeing drops of 9% QoQ and 18% YoY. The decrease was attributed to previous over-buying in anticipation of short supply. As a result there was a build-up of inventory, and in China TV shipment targets were also lowered.
South Korean and Chinese TV makers are forecast to raise their Q3 panel purchases by 25% and 27% QoQ respectively, and Chinese companies are expected to continue to buy during Q4 with Sharp returning to the market.