LCD TV panel prices have been on the rise for 15 months but prices for panels other than 65-inch models appear to remain unchanged currently and are likely to drop slowly and slightly in the second half of 2017, according to IHS Markit.
As Samsung Display has shut down a 7.5G TFT-LCD factory, global supply of 40- to 43-inch TV panels will decrease by 13 million units in 2017, IHS said. In contrast, China-based makers have begun production at two new 8.5G LCD factories and Innolux has ramped up production at its new 8.6G one in Taiwan.
Global TV panel supply in 2017 will increase about 2%, but the corresponding global demand will grow about 7%. Therefore, although TV panel prices may drop in second-half 2017, the decline is unlikely to be sharp, IHS Markit indicated.
Four 10.5G lines are under construction in China and will come into operation beginning 2019. Thus, China is estimated to account for 45% of global TFT-LCD panel capacity in 2019, exceeding 26% for South Korea and 23% for Taiwan, and there may be oversupply of TFT-LCD panels beginning in 2019.
A 10.5G line with monthly production capacity of 90,000 2,940mm x 3,370mm glass substrates entails investment of about US$5.8 billion, and such large sums of investment are deterring Korea and Taiwan makers from constructing 10.5G lines.
Instead they mull "half-10.5G" lines which use 2,940mm x 1,685mm glass substrates, just half of those used at 10.5G ones in size, and cost about US$3 billion each. A 2,940mm x 3,370mm glass substrate can be cut into eight 65-inch TV panels or six 75-inch units from 94% of panel area, while a 2,940mm x 1,685mm glass substrate can be cut into four 65-inch TV panels or three 75-inch units from 94% of panel area.