Samsung Display Completely Withdraws from LCD Market
Market research firm Omdia announced on July 13 that the average capacity utilization of global display panel manufacturers is predicted to fall from 70 percent to a 10-year low of 69 percent this month.
The quarterly capacity utilization is continuing to fall, too. Specifically, the figure fell from 89 percent in the second quarter of 2021 to 84 percent in the fourth quarter. According to the firm, it is estimated to fall from 77 percent to 73 percent in the third quarter of this year.
This is because the prices of LCD panels are falling and manufacturers are reducing their LCD panel production. In this market, oversupply has continued for almost a decade, led by Chinese manufacturers.
Samsung Display completely withdrew from the market last month. LG Display is reducing its production in Paju, South Korea and Guangzhou, China. Chinese manufacturers are reducing their output as well. Those of BOE and CSOT for the second half of this year are estimated to decrease by 20 percent to 30 percent from those for the first half of this year.
With the capacity utilization falling, the prices of LCD panels are falling more slowly than before. According to market research firm WitsView, the average prices of 50-inch and 55-inch LCD TV panels were US$73 and US$104 in the first half of this month, which are close to the average prices for the second half of last month.