Vertical Divider
Panel Pricing Continues Increasing Trend in July
August 02, 2020
In July, TV panel prices were up 6.5% as panel makers moved some TV capacity to IT products, causing TV supply to tighten. TV set makers are trying to ensure supply under their rather aggressive TV set shipment targets for the 2nd half and are building increasingly high cost inventory to meet expectations for the holiday season. Smartphone pricing was up 2.5% Y/Y and notebook prices were also up due to expanding demand.
Table 1:Panel ASP M/M Change by Application
August 02, 2020
In July, TV panel prices were up 6.5% as panel makers moved some TV capacity to IT products, causing TV supply to tighten. TV set makers are trying to ensure supply under their rather aggressive TV set shipment targets for the 2nd half and are building increasingly high cost inventory to meet expectations for the holiday season. Smartphone pricing was up 2.5% Y/Y and notebook prices were also up due to expanding demand.
Table 1:Panel ASP M/M Change by Application
Figure 1: Notebook Panel ASPs - 2019 -2020
Figure 2: TV Panel ASPs - 2019 -2020
TrendForce reported that, as the pandemic stabilized in May, governments eased national lockdowns, and the U.S. government distributing stimulus payments, TV brands saw the opportunity to stimulate consumer demand by engaging in discount pricing. As TV manufacturers increased the buildup of inventories, TV panel shipments reached 64.79 million in 2Q20, a sequential increase of 0.8%.
TrendForce believes that the panel manufacturers’ production capacities have now reached maximum utilization rates, driven by the increases in panel demand and prices. Total TV panel shipment is likely to reach 67.8 million pieces in 3Q20, a 4.6% sequential increase. But TV panel shipment is still projected to show a 6.3% decrease Y/Y due to the shift in production to notebook and monitor panels. TV panel prices are likely to grow as demand increases faster than supply.
Table 1:1H20 TV Set Shipment Ranking by Panel Maker
- BOE adjusted its allocation of Gen 8.5 products in 2Q20 to capture the TV display panel orders following SDC’s exit from the LCD manufacturing. BOE’s slight dip in TV panel manufacturing did not change its leadership position in the market, due to BOE’s production capacity lead. BOE led the industry in TV panel shipments in 1H20 with 23.26 million panels, a 14.6% decrease Y/Y.
- CSOT, the first panel manufacturer to resume operations following the outbreak-induced work stoppage best performance in TV panel shipment in 1Q20 as a result. In 2Q20, CSOT’s TV panel shipment underwent a slight decline since the company increased its allocation of monitor panel and ultra-large-sized 85-inch TV panel manufacturing. However, CSOT was still able to increase its TV panel shipment in 1H20 by 8.3% Y/Y reaching 21.3 million panels as its T6 (Gen 10.5) fab reached maximum capacity utilization, ranking number two in TV panel shipments.
- INX saw its demand for mid- and small-sized TV panels recover in 2Q20 after a sluggish Q120. Third-ranked INX’s TV panel shipment reached 20.34 million pieces in 1H20, a 7.2% decrease Y/Y.
- HKC shipped 13.93 million panels in 1H20, a 99.8% increase Y/Y. In addition to increasing the panel capacity and shipment of the Gen 8.6 production lines at its Chuzhou and Mianyang fabs, HKC decided to eschew its past focus on small-sized panel manufacturing.
TrendForce believes that the panel manufacturers’ production capacities have now reached maximum utilization rates, driven by the increases in panel demand and prices. Total TV panel shipment is likely to reach 67.8 million pieces in 3Q20, a 4.6% sequential increase. But TV panel shipment is still projected to show a 6.3% decrease Y/Y due to the shift in production to notebook and monitor panels. TV panel prices are likely to grow as demand increases faster than supply.
Table 1:1H20 TV Set Shipment Ranking by Panel Maker
