Panel prices have continued to rise for some time driven by strong market demand. Samsung display said a few days ago that it is considering extending the production of large-size LCD panels until the end of 2022. Industry insiders said that LG also plans to extend the production time of LCD.
It is reported that Samsung display and LG display, the two largest panel manufacturers in South Korea, will extend the production of LCD panels as panel prices continue to rise.
Samsung display Vice President Choi Joo-sun said in a recent email to employees that the company is considering extending production of large LCD panels until the end of 2022.
Samsung had planned to quit LCD panel production last year and accelerate the shift to the next generation of quantum dot (QD) displays. LG showed that it had also planned to close the LCD production line in South Korea at the end of last year and focus on expanding production of OLED panels. But this time has exceeded the original expectations.
Industry insiders pointed out that the decision made by South Korean LCD panel suppliers to extend LCD production comes at a time when panel prices are rising.
LCD panel prices rose 14.5% in the first quarter and are expected to grow 17% in the second quarter, according to market research firm Display Supply Chain Consultants (DSCC). The average price of LCD panels jumped to its highest level since June 2015 in the first half of May, according to Witsview.
In addition to the price factor, the out-of-stock cycle of the LCD panel market is also one of the reasons why Samsung monitors and LG displays made the above decision. It is reported that the TV business units of Samsung Electronics and LG Electronics have asked the two panel makers to continue to produce LCD panels.
Both Samsung Electronics and LG Electronics recently said that higher prices for LCD panels could undermine their profitability, and that a shortage of semiconductors could also pose a potential risk.
