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Company News >> Long-term oversupply of LCD panels will accelerate the elimination of old production lines

According to IHS Markit, large TFT LCD panel manufacturers will reduce the production of relatively small 32-inch, 40-inch and 43-inch panels, helping to stabilize panel prices in the third quarter of 2018. However, in the medium and long term, the problem of oversupply still exists, which will eventually lead to the reorganization of the old TFT LCD production line.

Large-scale display panel production capacity will increase by 31% or 77.7 million square meters from 2018 to 2021, mainly from China's Gen10.5/11 factory. The market demand is expected to be about 49 million square meters in 2021, and the oversupply is expected to continue to increase from 12% in 2018 to 23% in 2021.

As a result, some panel makers may be forced to reduce utilization, while some planned capacity may never be put into production, and traditional line reorganization may accelerate in the next few years.

In order to restore the TFT LCD industry to a balanced supply and demand level, it may be necessary to shut down multiple Gen 5, Gen 6 or even Gen 8 plants. Possible reorganizations of traditional plants include shutting down production lines, integrating facilities or converting to other technologies such as active OLED (AMOLED) panels, ePaper backplanes and sensors.