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Delays in 5G factories exacerbate LCD shortages

Large LCD panel shipments, iSuppli / Stanford analysts note
Resources, in the third quarter for a short time may exceed demand, which will interrupt
the situation with a shortage of products in the market observed throughout the entire 2021
of the year. The irony of the LCD shortage situation is that this
year in the entire history of the industry, the capex of manufacturers was the highest.
Seven new factories producing 5th generation panels to start production
this year – in 2021 there were only two.

The 2021 deficit is the result of a combination of two circumstances – demand and productivity
factories. ISuppli / Stanford Resources Experts Notice Growth in Demand for All Solutions,
equipped with LCD screens. So, for example, the supply of laptops and LCD monitors will be
by the end of the year 47.5 and 36.3 million. pieces, respectively – compared to 2021
supplies will grow by 55 and 20%, respectively. If we take into account the supply of TVs
with LCD screens, then this growth will be even greater: the supply of LCD panels for these solutions
this year will amount to 3.2 million. pieces, which is 128% more than last year.

The main demand will be for panels of 17 “and larger. So the demand for
17 “displays will grow 132% over last year, to 15 million. pieces,
growth in demand for 19 “solutions will be 71%.

Panels size 20.x ~ 25.x inches will be especially in demand by LCD TV manufacturers
– sales of such solutions in 2021 will amount to more than 25% or 838 thousand. pieces from
total sales. Growth in demand for large panels will have an impact
for deliveries. Although the dimensions of the substrates produced by an average 5th generation factory
– 1100 x 1300 mm, and factories producing panels over 20 “, as already noted,
there will be five more, their performance is limited.

So from the substrate 1100 x 1300 mm, sixteen 15 “or twelve
17 “panels. This number is reduced by the production of 20 “panels –
only nine and 26 “- six. If all factories of the 5th generation producing
products in 2021, used to produce 17 “panels, then,
the maximum that would have been produced is just over 20 million. panels. However, the existing
the market situation shows the opposite. Some factories of the 5th generation produce
panels with a size of 20 “and more – for TVs, that is, the output of finished products
small. Some of these factories also manufacture 15 “panels, a shortage of
which was observed most of the year. When the 5th generation factory starts producing
large panels, the yield of 15-17 “panels is reduced by more than
25%, respectively, supplies are reduced. Well, the delays with the increase in output
products in factories lead to a further reduction in supplies.

If five new factories of 5th generation and two factories of 6/7 generations, which should
to open in 2021, start production, the situation on the LCD market in the next
year will change. ISuppli / Stanford Resources estimates in the first half of 2021
year, there will be even a glut of the market.

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