According to TrendForce, thanks to continuous expansion of production capacity, as well as mergers and acquisitions, Chinese manufacturers were able to increase their participation in global TV panel shipments to 60% in the first half of the year.
They not only occupied a dominant position in relation to global competitors, but also became a key factor determining the balance of supply and demand in the TV panel market.
TrendForce analysts found that the TV panel market has entered a phase where supply exceeds demand. Taiwanese and Korean suppliers have strategized to deal with these situations by redeploying some production capacity from TV panels to other product categories such as laptop and monitor panels. How the Chinese manufacturers will behave is not yet clear. Perhaps they will reduce the degree of capacity utilization.
Since the imbalance between supply and demand in the TV panel market is unlikely to be resolved on its own, some panel manufacturers have already begun assessing the feasibility of adjusting their production capacity in the fourth quarter. In particular, we are talking about the Gen 8.5 and Gen 10.5 product lines, which produce most of the TV panels and play a key role in balancing supply and demand.
Analyst firm TrendForce expects panel makers to not only increase the proportion of TV panels measuring 85 inches diagonally or larger, but also reallocate some of their capacity to produce panels for monitors and laptops. As a result, the production of television panels, if we count by the total area, in the fourth quarter will decline by 2.1% compared to the third.
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