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Oversupply to push LCD panel price slump

Post Time:Sep 05,2008Classify:Industry NewsView:431

THE price of LCD panels, used in flat screen televisions and laptop computers, is expected to continue dropping in the first half of next year as the gap of oversupply expands, industry officials said during a display forum today.

In the past three months ending on August 31, the average price of LCD panels dropped about 15 to 30 percent, the biggest plunge in the history of the LCD (liquid crystal display) industry, according to DisplaySearch, a US-based display consulting firm.

"The oversupply will be improved in the fourth quarter but the supply will surge in the first half next year as more advanced LCD panel plants will be built," David Hsieh, DisplaySearch's vice president, said during the 2008 China FPD Conference held in Shanghai.

AU Optronics, the world's third-biggest LCD panel maker, will open a more advanced eighth-generation LCD plant in Taiwan next year, which will boost the company's LCD panel capacity, especially on TV panels, according to LS Yang, AUO's Suzhou factory director.

For example, the top 19-inch wide LCD panel, used in monitors, cost US$126 in June and it dropped to US$90 last month. The medium 32-inch LCD panel, used in LCD TV, cost US$308 in June and decreased to US$270 in August, according to DisplaySearch.

The LCD panel market will rebound in the second half next year, industry officials said during the forum.

To face the winter, LCD panel makers, from Samsung, LG Display, AUO to Chimei have all reduced the utilization rate of their production lines or adopt more energy-efficient (green) technologies.

Source: shanghaidaily.comAuthor: shangyi

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