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AUO, Innolux May Lower Production Capacity

Published: Dec 26,2013

[Taipei , Taiwan ] Taiwan research institute pointed out ,Taiwan panel manufacturers AUO and Innolux may slightly lower capacity utilization of 2% to 3% in the first quarter of next year, to cope with the decline in demand for the off-season , but the overall utilization rate will remain over 80%, in order to maintain shipments and profit.

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WitsView research vice president Zhang Xiaobiao said due to off-season effect, the panel demand in the first quarter of 2014 may significantly decline, the Chinese New Year 's shipments have begun stocking early in the fourth quarter this year, however , the panel company may only mild lower utilization next year in the first quarter, won’t be large-scale reduction.

Zhang said that to maintain a high utilization rate is conducive to enhancing the volume, as well as maintain better earnings performance , however , if the off-season production is declining dramatically , forcing the panel maker to maintain low utilization, which will suppress panel prices , make panel prices continue to drop.

On the other hand , Samsung Display ‘s 8th generation panel plant in Suzhou , was put into operation in the fourth quarter of 2013; China BOE’s 8th generation panel plant in Hefei is expected to operate in March 2014; LGD Guangzhou 8th generation line is planning to mass production in June 2014, with these new production capacity flourish in China, the panel market equilibrium will be uncertain.

From the point of view of individual panel products , TV panel prices may still downtrend in the first quarter of 2014 , computer Panel and monitor panel may decline slightly , laptop panel might stay even for lower inventory level.

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