Panel makers cut glass input

Falling prices and weak demand expectations for large-area TFT LCD panels have caused panel makers to adjust their 2H’11 production strategies. As panel prices approach cash cost, makers are reducing capacity use.

According to the Quarterly Large-Area Production Strategy Report, global TFT LCD glass input peaked in Q2’11 at a record 14.2 million m² per month.

However, global glass input will be reduced to 12.2 million m² per month in Q3’11, a 14% drop Q/Q, and 5% growth Y/Y. As the market outlook is still unclear, panel makers are planning to maintain input at 12 million m² per month in Q4’11.

Glass input area for all three of the major applications for large-area TFT LCD - desktop monitor, TV and notebook PCs - fell by double digits, with 19%, 13% and 17% declines Q/Q, resulting from the current low panel prices and an unclear outlook on market demand.

Panel makers intend to decrease mini-note PC production while increasing tablet PC panel production, so this category is flat Q/Q.