Industry news

With the TV market anticipating tight LCD panel supply due to Samsung Display moving to close down its 7G L7-1 panel line, orders to Taiwan panel makers became more aggressive as the makers built up inventory, helping Taiwan large-size LCD panel makers see a slight on-year increase in their fourth quarter 2016 shipments, Digitimes Research indicated.

According to data from the most recent Digitimes Research Taiwan LCD panel tracker report, Taiwan shipped 61.4 million large-size LCD panels in the fourth quarter of 2016, down 1.5% from the previous quarter but up 2% from the same period a year ago.

The key trend in the market has been Samsung Display's plan to close down its L7-1 LCD production line to transform it into an AMOLED panel line. And tight supply in the TV segment is expected to continue. Since the L7-1 production line was mainly used to supply 40-inch panels, LG Display, Innolux and AUO -- all of which have similar production lines -- are benefiting, the report explained

Relatively speaking, tight supply will be favorable for Taiwan large-size panel shipments in the first quarter of 2017. Although shipment are expected to slip 7% sequentially, the total would represent a milder than expected decline due to seasonality and fewer working days in the quarter because of the Lunar New Year holidays. Despite the drop in shipments, Taiwan's worldwide market share will rise slightly during the quarter.

Compared to the same quarter a year ago, Taiwan's shipment volume is expected to grow more than 15% in the first quarter of 2017. In addition to the favorable market circumstances this year, the jump in shipments can be explained by the fact Taiwan's large-size panel shipments were seriously impacted in the first quarter of 2016 by a strong earthquake that hit southern Taiwan and disrupted panel makers' production, Digitimes Research noted.