Decisions by Chunghwa Picture Tubes (CPT) to close down 4.5G facilities and Hydis to close 3G and 3.5G fabs are indicators of weakening demand for low-generation LCD fabs that more makers are expected to face in the future.
Since 2012, 15 low-generation TFT LCD fabs have shut down, including facilities such as Samsung Display's L3, AU Optronics' (AUO) L3B and Japan Display's Mobara plant in 2012, followed by 2.5G and 3G fabs from Sharp, 2G facilities from LG Display and a 2.5G fab from Hydis in 2013.
Oversupply is largely to blame for the closures, claim various market observers, adding that the rise of mid-range and high-end smartphones that use LTPS displays is becoming more widespread in the market, prompting decreased demand for a-Si TFT LCD.
Panel makers in China are expected to continue expanding or constructing LTPS in addition to OLED production facilities over the next few years while a-Si is expected to gradually weaken, based on the views of various supply chain analysts, that added Samsung, BOE, LG, AUO, Tianma Optoelectronics and Japan Display all have such plans.
Article translated by Alex Wolfgram
