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Musing on Displays
 
LCD Panel Price Reductions Continue Even as Fab Utilization Reduced
October 07, 2019
 
DSCC reported significant reductions in LCD fab utilization in Q319, including
 
LGD
P7 65% down to 20%
P8 72% down to 45%

CEC
Fab2 92% down to 75%

SDC
T7-2 80% down to 45%
T8 85% down to 45%

But these utilization reductions as reported by DSCC (below) and Corning have not had an impact on large LCD panel prices as monitor pricing declined 0.9% with TV production shifted to monitors as some TV panel sizes slipped below cash costs and notebook panel production remains a bit higher than utilization rates might imply, causing notebook panels to decline ~0.2% for the month. ​

Figure 1: Large Area LCD Fab Utilization*

​Excludes HKC Gen 8.6 Fabs                                                       Source: DSCC
 
LCD TV panel prices continuing their descent declined ~3.8% for the month.  TV brands are still working down inventory and could lower panel purchases in the 4th quarter if demand does not pick up.  Surprisingly, smaller TV set sizes seem to be more in favor given the discounting available for those sets 
 
Apparently, LCD panel price change have not yet been impacted by either the closing of Samsung Display’s L8-1 fab or the reports that LGD is considering closing some of its older LCD fabs.  On the supply side, 3Q results do not look like they will create any kind of optimism from panel producers, most of whom will lose money, except for the Chinese that are receiving subsidies