Production capacity is dragged down by the coronavirus, LCD panel prices may rise up to $5

by:Kimeery     2021-06-07

In the current coronavirus outbreak, the production of at least five LCD monitor factories has slowed down, which is expected to have an impact on the supply and prices of personal computers and LCD TV monitors.

In order to prevent the spread of the coronavirus, five LCD fabs in Wuhan, China have been basically closed. Of these five fabs, two are owned by China Star Optoelectronics, two are owned by Tianma Microelectronics, and one is owned by BOE.

IHS Markit, a market research organization under Informa Tech, said on Friday that they expect the capacity utilization rate of all LCD fabs in China to drop by at least 10% in February, and at most 20%.

Therefore, the price of LCD panels is expected to rise. IHS said that preliminary estimates indicate that the price of each panel may rise by 1 to 2 US dollars, but the highest may also rise by 3 to 5 US dollars.

IHS estimates that about 55% of global LCD panels will be shipped from China in 2020, which means that the outbreak in China will have an impact on the global supply chain.

David Hsieh, senior director of display research at IHS Markit, said in a statement: “The display factories in Wuhan are currently responding to the very real impact of the coronavirus outbreak. These factories are We are facing shortages of labor and key components. In the face of these challenges, China’s major display suppliers have notified our experts that the recent decline in production is inevitable.'

IHS expects, including repeated downloads. Single panic buying will occur. To ensure that the required supply is obtained, the buyer will place an order with two suppliers to ensure that the required quantity of goods can be purchased.

IHS also stated that the production of some major third-party LCD module suppliers has also stopped, which has severely affected the panel production across China. The agency said that in addition to the decline in the production speed of the fab that has already started operations, the on-line speed of the new fab will not be as fast as expected. (Associated Finance Press)

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