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Musing-Weekly Newsletter

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Musing on Displays
 
LCD TV Panel Prices Are Rising
March 15, 2020
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TV panel prices should continue rising in March even as the supply of TV panels are improves with makers ramping up output in the wake of the coronavirus outbreak.
TV brands have not reduced their shipments pull-in even though end-market demand does not look strong. Some TV brands believe the supply of TV panels will remain tight in the near term as the display supply chain could take a further hit if the outbreak goes out of control in other countries, worsening supply of some key materials. With the supply outlook remains uncertain, prices of 32-inch TV panels are likely to move up another US$2 per unit in March after a hike of US$3 in February, and those for 43-inch models will rise US$3 after gaining US$5 a month earlier, according to Sigmaintell Consulting. Quotes for 55-inch ones will rally US$5 in March due to tight supply, after rising by US$7 a month earlier. Those for 65-inch models are expected to rise US$5 in June, while quotes for 75-inch sizes will remain stable at US$291, said the market research firm.
 
Panel producers from Japan, South Korea, or Taiwan that have active fabs in China face travel restrictions placed on returning workers to protect existing Chinese population from being re-infected will limit production at those fabs, likely until the end of March or early April, which puts pressure on Samsung Display  and LG Display both at home, where the infection is increasing and at their fabs in China, where returning nationals are being restricted.  While this gives Chinese panel producers a bit of an edge in the near-term, we expect a more level supply side playing field by the end of April.

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