Prices for these products were below the cost of production
According to market research company TrendForce, the price of TV panels dropped to such a level that, as a rule, are below the cost of production. This prompted the Korean, Taiwanese and Chinese manufacturers in September to begin to reduce the load on production capacity. Reducing the production volumes of manufacturers expect to balance supply and demand, to stabilize prices.
Most reduced output of panels for the Korean company. In particular, Samsung Display reduced boot factory Gen 7 is more than 50%, and the factory 8.5 Gen — 30-40%. LG Display plans to the end of the year to reduce the production in the factory of the P8 Gen 8.5 to 25%, and factory P7 Gen 7.5 will only work a third of their capacity in October.
The Taiwanese manufacturer AUO this quarter will reduce production at Fab 8A Fab Gen 8.5 and Gen 6 6B by 50% and 20% respectively.
The Chinese company CSOT to the end of the year 20% will reduce production at the factory Fab T2, recently modified to work with Gen 8.5 substrates. Factory Gen 10.5 of the company BOE Technology (BOE) and the factory Gen 8.6 of the company CEC-CHOT, too, will reduce output by about 20%. Plan for the commissioning of this year’s Sharp factory Gen 10.5 is temporarily suspended due to weak demand for TVs.
Note that the share of Chinese products in the market of large panels is growing rapidly and this year will surpass the share of South Korean competitors, and next year will be almost half of the market.