TrendForce Reports Large-Size LCD Panel Shipments Grew 9.3% Monthly in August Ahead of Peak Season

WitsView, a division of TrendForce, reports that large-size LCD panel shipments for this August reached 68.84 million units, representing a monthly increase of 9.3%. The growth was attributed to TV and IT brands stocking up for the upcoming promotional sales events. A comparison of results by panel applications also show that tablet panels registered the largest monthly shipment increase at 25%.

However, monthly large-size panel shipments for this September is expected to correct downward slightly as most branded device vendors have already made their panel purchases in advance. 

According to WitsView’s survey of the TV panel market, successive months of rising panel prices have caused concerns among branded TV set makers that increasing costs of panels would erode their product margins. To avoid larger price increases in the future, TV brands have kept expanding their panel purchases. As a result, global TV panel shipments reached a new monthly high for this year in August, growing by 3.6% to 23.61 million units. 

“Innolux made an effective change to the product mix of its Gen-6 fabs, decreasing their production of 65-inch panels as to free up more capacity to take on the production of 39.5-inch panels,” said Iris Hu, research manager of WitsView. “As a result, the panel maker grew its TV panel shipments by 9% monthly in August to around 3.81 million units. Additionally, Innolux is seeing increases in the prices for its TV panels.”

Hu also noted China Star Optoelectronics Technology (CSOT) achieved a new record in its monthly TV panel shipments: “CSOT saw a surge of demand from its group company TCL during August and its 32-inch TV panel shipments surpassed the 2 million unit mark for the first time. CSOT’s total TV panel shipments for the month were 3.07 million units, up 7.5% monthly.”

In the monitor panel market, strong stock-up demand from IT brands kept the August shipments on the same level as in July, totaling around 12.37 million units. Owing to U.S.-based vendors restocking their inventories and readying for the peak season, shipments of 23.8-inch monitor panels registered four consecutive months of growth, with volume in August growing by 9.4% sequentially to about 1.34 million units. The 23.8-inch size segment also became the second-largest size segment in the monitor panel market in August as its shipments surpassed those of the 19.5-inch. It is expected that the 23.8-inch will remain as one of the monitor market’s mainstream sizes.

Additionally, the high demand for large-size monitors from Internet cafés in China caused shipments of 31.5-inch panels in August to register above expected growth of over 40% monthly, with volume exceeding 286,000 units. 

As for the notebook panel market, Chinese and U.S. branded notebook vendors are busily purchasing panels so that they can achieve their shipment targets for the Black Friday sales and the quarterly period. Their demand drove the August notebook panel shipments to 15.11 million units, up 11% monthly. Notebook panel prices have also been rising due to a shortage of HD resolution panels of twisted nematic (TN) type. The supply shortage has benefitted major suppliers of that particular panel products. Notebook panel shipments from BOE Technology (BOE) and Innolux grew 25.8% and 16.1% over the prior month in August to reach 3.49 and 3.53 million units, respectively.

Tablet panel shipments for August grew significantly by 25% compared with the previous month, amounting to 17.75 million units. LG Display (LGD) expanded its tablet shipments by 47.8% monthly to 2.39 million units. LGD’s 9.7-inch tablet panel shipments were the main contributor to the impressive performance as they rose 65% monthly on the back of strong demand from Apple. 

Taiwan-based Hannstar’s completed its recovery from the earthquake that struck the southern part of the island in this year’s February. The supplier’s tablet panel shipments not only stabilized in August but also soared 124.4% monthly to 1.38 million units on account of demand from white brand vendors. BOE, which focuses on the white brand tablet market as well, saw its tablet panel shipments surged by 84.5% monthly in August to 3.1 million units. The effects of the coming peak season boosted demand from device vendors and restored BOE’s tablet panel shipments to the same level as they were earlier this year. 

“TV and IT brands are continuing to stock up this September in preparation for the peak season,” said Hu. “However, panel prices have already risen significantly over the last few months, and branded device vendors have already made considerable purchases in advance. These factors will cause a slight downward correction for the overall panel shipments. WitsView projects that respective monthly shipments of panels for TVs and notebooks will drop by 1~2% in September compared with the prior month, while shipments of panels for monitors and tablets will separately post a monthly decline of 3~4%."