Panel makers to scale back plans

Large-area TFT LCD panel price increases halted in mid-June due to an uncertain demand outlook for Q3’11.

While demand is slowing down, especially in the TV market, the supply side is making adjustments to prevent drastic panel price fluctuations.

Panel makers originally expected to raise capacity use - the ratio of actual output to total available capacity - to an average of 90% in Q3’11.

However, capacity use will remain at 85% from July to September.

The average large-area TFT LCD capacity use fell in Q1’11. After reaching 79% in April, panel makers increased rates through Q2’11 to meet a surge in demand and by June the rate had reached 85%. Panel makers were planning to increase capacity use in Q3’11 but this has changed in response to market conditions.