Chi Mei Optoelectronics (CMO) has decided to cut LCD panel output by 10% effective immediately, as the outlook for the market remains bleak, according to industry sources.
CMO, having already cut LCD module (LCM) production 10%, had originally wanted to wait till August before deciding whether to also cut front-end panel output, the sources said.
But with clients for IT applications slashing their orders in July, and monitor panel prices plunging steeply, CMO expects its overall shipments and revenues for July to decline compared to June, the sources said.
CMO executives decided to cut panel output at a meeting on Tuesday, which means the company's utilization rate will be reduced to 90%, the sources added.
CMO's major competitors, AU Optronics (AUO), Samsung Electronics and LG Display may follow suit, the sources commented.
Article translated by Rodney Chan
