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Mobile Phone LCD Screen Quality Control Expert. 

Research: SDC plans to continue producing LCD panels until the end of the year, and the risk of oversupply in H2 increases

According to a survey conducted by the Display Research Division under TrendForce, Samsung Display's (SDC) South Korea LCD production line will still have one Gen7 and two Gen8.5 production lines in operation in the first quarter of 2021. In consideration of size requirements, cost and technology transfer schedule, it is expected that only one Gen8.5 will be kept in normal production until the fourth quarter of 2021. Although Samsung Display does intend to extend the LCD production time in South Korea, it is expected that it will not be extended indefinitely until the end of this year (2021).

TrendForce analyst Chen Qiaohui pointed out that according to Samsung Display’s plan, it is expected to extend the production time from April to the fourth quarter of this year. By then, 3.2 million TV panels will be shipped, accounting for the overall The TV panel shipments accounted for 1.2%, and the overall TV panel shipments in 2021 are expected to be lifted by it, reaching the same level as in 2020.

However, Samsung Display’s move will not have a significant impact on the panel supply and demand in the first quarter of 2021. The main reason is that it originally planned to supply nearly 1.8 million TV panels and 1.1 million in the first quarter of this year. The display panels are supplied to the group's brands, and related components are currently out of stock. The shipment volume is expected to be reduced to 1.5 million and 550,000 respectively, and the gap will not be made up until April this year.

According to TrendForce's large-generation LCD glass input area and panel demand area supply and demand model, although Samsung Display’s delayed closure will increase the input area in the second quarter of 2021 by 2.2%, the second quarter still There is a risk of material shortages, and the demand for panels for TVs, monitors, and laptops is still supported to some extent. Therefore, it is estimated that the overall supply and demand situation in the second quarter can still maintain a balance.

In general, although Samsung Display stated that all panels produced in 2021 will be sold to group brands, TrendForce predicts that there will be an oversupply situation in the panel market since late this year. The increase in supply of Samsung Display will undoubtedly expand The risk of imbalance between supply and demand. Samsung Electronics (SEC) has always been the largest purchaser of panels. As the support of the group's panel factories increases, how the procurement strategy will change will be one of the key observation items in 2021.

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