What They Say
Digitimes Research has forecast that small/medium LCD panel shipments from Taiwan will decline by 9.5% this quarter compared to Q4, but will be up year on year by 3.9% to 174 million units. The volume has been limited by driver IC shortages and other supply chain issues. The volume has also been affected by the US sanctions against Huawei.
On the positive side, demand for panels for tablets (including for Amazon) and automotive applications have recovered somewhat.
Over the year, the impact of increased AMOLED shipments will mean a drop of 6.8% to 790 million units, according to the current outlook.
What We Think
The lack of a strong AMOLED business in Taiwan has really weighed on the small/medium segment. Taiwan is, of course, strong in IT panels, and we expect volume still to be in LCD going forward, but increasingly the premium end of that market will come under pressure from OLEDs. The Taiwanese will need to continue to drive down pricing for miniLED BLUs to sustain their business. (BR)
