Flat-panel makers are considering reducing production amid dismal panel demand, which caused a price drop this month that was deeper than expected, market researcher TrendForce Corp (集邦科技) said yesterday.

The price of 55-inch TV panels this month plunged 11.9 percent month-on-month, the steepest decline ever, to an average of US$185 per unit, TrendForce’s pricing data showed.

The costs of large TV panels dipped between 10 and 15 percent sequentially last quarter, a steeper fall than Trendforce had forecast, it said.

“Since panel prices started tumbling in August, some TV makers have become cautious about placing big orders, as they fear that they might have to absorb losses amid falling prices,” TrendForce display research division vice president Eric Chiou (邱宇彬) said in an e-mailed statement.

“As a result, panel demand has fallen short of market expectations during the third quarter, which is usually a peak season for the industry,” he said.

Panel makers tried to clinch larger orders by slashing prices at the end of the last quarter, in expectation of the sector’s slack season in the final quarter of the year, Chiou said.

However, panel demand slumped further, as TV makers refrained from large orders amid a surge in transportation costs, Chiou said.

Overall, the sluggish buying sentiment has triggered a price war, he said.

TrendForce said it expects the supply surplus to stay, unless panel makers quickly reduce their production, he said.

Innolux Corp (群創) last week said it had begun to reduce its manufacturing loading rate in response to sagging demand.

Lackluster panel demand outlook also dragged down shares of AU Optronics Corp (友達光電) and Innolux, which yesterday slid 0.59 percent and 1.21 percent to NT$16.85 and NT$16.3 respectively, the lowest levels in about 7 months.


●Origin：Taipei Times
●Link：https://www.taipeitimes.com/News/biz/archives/2021/09/24/2003764890