Second screen growth changes display makers’ strategies

Editor ©RapidTVNews | 14-12-2011

Even though its overall growth prospects are somewhat flat, the display market is gearing to up switch for traditional products to cope with a surge in order for tablets.
According to the NPD DisplaySearch Quarterly Large-Area Production Strategy Report, panel makers have minimized their 2H’11 production in response to falling large-area TFT LCD panel prices in 2011, but preparation for 2012 models and gradual clearing of supply chain inventories are encouraging panel makers to take a more positive stance in their production strategies. Overall though global TFT LCD glass input peaked in Q2’11, achieving a record 42.1 million square meters, but then fell to 36.5 million square meters in Q3’11, and is expected to reach 37.8 million square meters in Q4’11. In Q1’12, panel makers are expecting to increase glass input by 5%, to 39.8 million square meters. The forecast capacity utilization is 77% in Q1’12, which is 7% higher than previously expected. This is partly based on expectations that prices have bottomed out in this cycle. Also, panel makers are planning for new models, such as larger size multi-function monitor panels, ultra-slim notebook PC panels, new TV panel sizes with cost effective CCFL and LED backlights, and slim bezels.
The star performer is going to be the tablet sector where increased uptake, especially as a second screen in online video applications, will likely see display technology production volumes double in the year from Q12011 to Q12012. Panel makers are also reshaping their tablet PC panel production strategies, with Sharp using its Gen 8 fab to produce tablet PC panels with oxide TFT backplanes, and Samsung, LG Display, and Sharp producing tablet PC panels with more than 200 pixels per inch. Other panel makers are planning to apply more production resources to tablet PC panels in 2012.
Commented Shawn Lee, Senior Analyst for NPD DisplaySearch: “Increasing production does not necessarily increase shipments, as panel prices are close to cash costs in many cases. However, improved inventory and price outlooks, as well as the launch of new panel models, are leading panel makers to be more optimistic.”