Although demand from some Chinese handset clients for small- to medium-size panels seems to have slowed down slightly since June, most panel makers are still running in full capacity for the segment and shortages remain, according to company and industry sources. The sources said makers such as Chi Mei Optoelectronics (CMO), Chunghwa Picture Tubes (CPT), and HannStar Display are seeing full utilization for small-to-medium-size panels, and some of them are likely to increase output for the segment at their 4.5G lines.
Sources with CPT pointed out that although demand from Chinese handset makers for small-to-mid-size panels seems to be weaker in June and July, it is only because the clients are not pressing as hard as they did in previous months for fast delivery of panels. The 2.4-inch segment has taken back its status as the mainstream segment from the 2.
8- and 3.2-inch segments, and as a result more panels have been cut from glass substrates, helping ease the shortage a bit, the CPT sources said. But based on clients' forecasts, beginning in August, supply will grow tighter because of demand ahead of China's long holiday at the beginning of October, the CPT sources said.
Apart from the handset segment, demand from consumer electronics, such as MP3 players, portable DVD players and digital photo frames, in the third-quarter high season will be strong, with the medium-size segment seeing stronger demand than the small-size segment, the sources said. CPT's order visibility for medium-size panels has already extended to the end of the year, and any extra demand from clients can only be met in the first quarter of 2008, the company sources said. CPT's medium-size panels mostly cater to portable DVD players.
Although the company realizes demand from digital photo frames is very strong, its capacity has been fully booked, and panels for digital photo frames will not see sharp growth until next year, the CPT sources said. AU Optronics (AUO) has a monthly capacity of more than 10 million units of small-to-medium panels, and currently it is running close to full capacity, industry sources said. CMO's 3.
5G capacity is now not sufficient to meet demand, and the company is switching part of its 4G capacity to making small-to medium-size panels, the sources said. As for HannStar, it is seeing the tightest capacity for small-to medium-size panels, as it only runs a 3G plant for the segment, the sources noted, adding the company may shift part of its 5G capacity for the segment. But sources with HannStar said that although the company did consider shifting 5G capacity, demand for large-size panels has been so strong that the 5G plant cannot spare any capacity for small-to medium-size panels.
The upcoming high season will make it even more unlikely any extra capacity at the 5G plant will be released before the end of the year, the company sources said. Strong demand for small- to medium-size panels to ease, paper says (Jul 2) CPT may enjoy profitable 2Q (Jun 26) HannStar to expand 3G capacity by 10-15% (May 31) HannStar to raise 9-inch panel prices due to strong demand (May 21) Taiwan OEM makers of DSCs, MP3 players facing shortage of LCD panels (May 8) Wintek sales to jump in 2H07 on handset and capacitive touchscreen panel orders PC panel prices to rise in July Macronix discrepancy in 2006 EPS simply due to differences in accounting methodology Major China TV makers may visit Taiwan panel makers, paper says PQI sales pick up in June on stable NAND flash product prices Asustek spin-off Unihan to focus on acquisitions Kenmos to ship LED backlight units for notebooks Taiwan market: More vendors cooperating with telecom carriers to launch 3.5G handsets Qimonda introduces power-efficient FB-DIMMs for data centers Zenitron to distribute Cypress capacitive sensing controller Compeq to see new iPod PCB sales contribution, says paper CMC Magnetics reportedly to invest in solar energy Only 2.
3 billion subscribers out of 3 billion mobile subscriptions, says research firm Contract manufacturers heading to Southeast Asia, says iSuppli D-Link International aiming at revenues of US$500 million in 2007 Advantech to help set security product standards IBM and III cooperate to set up first SOA Innovation Center in Taiwan Taiwan makers gearing up development of UMA-compliant handsets FPD Expo Taiwan to kick off, IDMC 2007 to feature key display speakers Chang Wha lead frame prices to rise in 3Q Worldwide chip sales in May grew 2.4% on year Although demand from some Chinese handset clients for small- to medium-size panels seems to have slowed down slightly since June, most panel makers are still running in full capacity for the segment and shortages remain, according to company and industry sources.
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