What impact will the hottest LCD glass shortage ha

2022-07-27
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What impact will LCD glass shortage bring to the market

according to iSuppli, the glass shortage that has plagued liquid crystal display (LCD) suppliers in the past few months has a very mild impact on the LCD supply chain

the shortage of large LCD panels (diagonal size greater than or equal to 10 inches) is mainly due to the panel suppliers' early preparation for the upcoming Christmas sales season. In addition, due to concerns about the aggravation of the shortage situation and the low panel inventory of suppliers, buyers are over ordering and expanding the supply and demand gap

however, as previously expected, the fifth and sixth generation LCD factories operated by Taiwanese suppliers are mainly affected by the glass shortage. In contrast, Korean and Japanese suppliers have not experienced any serious shortage at all. Panel suppliers' panel inventory is still low, preventing prices from falling too sharply

from the perspective of demand, the low inventory comes from the increase in OEM purchases. These OEMs expect sales to rise during the Christmas holiday season, so they stock up in advance. From the supply side, the shortage of glass and other parts has restrained the inventory level. Although the overall panel inventory level of the buyer has risen from one to two weeks, from two to three weeks to three to four weeks, it is still within the healthy range of what the insiders think 5: regular inspection of the screws at the jaw. For some retailers, TV channel inventory has also increased by one to two weeks compared with last month

does price affect profitability

panel prices rose sharply due to strong demand in July. However, this is bad news for manufacturers of more than 2000 devices and notebook computer brands whose TV and desktop computers show new projects throughout the year, because the rise in panel prices may compress their profits. ISuppli has pointed out that due to the rise in panel prices, the profits of monitor and TV system manufacturers have been eroded by minimizing the length of data lines. Panel buyers became more conservative about increasing panel inventory and began to refuse to accept substantial price increases. In particular, Chinese TV brand manufacturers have slowed down their procurement plans

looking forward to the future

in order to maintain the profit margin, it is difficult for buyers to accept further price increases from panel manufacturers, so the rise in panel prices in August will remain moderate. Affected by the holiday season at the end of the year, it is expected that the market demand for monitors, TVs and laptops will remain strong in the third quarter, which will also promote the stability of panel prices. ISuppli predicts that the downward revision of prices in the fourth quarter may be greater than the industry's expectations, considering that prices have risen in the past few months

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