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Big Chinese LCD Panel Makers Reduce Fab Utilization in September
 
LCD TV panel shipments from BOE, CSoT and HKC accounted for 50.9% of the total global shipment area in the first half of 2021, more than half for the first time. By the second half of the year, the prices of large-size TV panels will moderate and enter the rapid price reduction mode. According to CINNO Research, in the first half of 2021, the global LCD TV panel shipment volume was 130 million pieces, up 2.5% Y/Y, and the shipment area was 83.12 million m2, up 10.3% Y/Y. After BOE and CSoT expanded their capacity and opened the volume gap with other manufacturers. HKC’s rapid expansion of production in recent years is finally reflected in the shipping performance, and the shipping area ranks in the top three for the first time. BOE accounted for 22.7%, CSoT accounted for 17.7% and HKC accounted for 10.4%. LG display reached 9.4%, returning to the fifth place.
 
The price reductions will bring significant performance pressure to large-size LCD TV panel manufacturers in the second half of the year, forcing some manufacturers to shift part of their production capacity to markets with stable demand such as it or reduce the production capacity growth rate. China-based LCD panel makers have reportedly reduced utilization of production capacities in September from an average of 94.6% in August to about 90%, according to CINNO Research.