Taipei, April 27 (CNA) Shipments of large-sized flat panels by Taiwanese manufacturers are expected to rise about 7 percent sequentially in the second quarter as demand in the depressed sector recovers, Digitimes Research said Friday.
According to the research firm, 67.35 million large-sized flat screens will be shipped from Taiwan during the April-June period, up from 62.96 million units shipped a quarter earlier.
Digitimes Research senior analyst Tony Huang said demand for the large screens, which refer to displays of 9-inches or above used for example in TVs and notebook computers, is expected to pick up momentum in the current quarter.
Huang said demand for TVs in particular has been boosted by a buying spree ahead of the prolonged Labor Day holiday in China on the back of a recovery in 39-inch and 50-inch TV panel sales.
For Chimei Innolux Corp., which ranks as the largest flat panel maker in Taiwan, 39-inch panels are expected to account for 20 percent of the company's total sales in the second quarter, the analyst said.
So far, prices of large-sized panels have recovered slightly due to the rising demand but it remains to be seen whether the pricing momentum will continue as Chinese screen firms increase their production on a large scale, Huang said.
Huang said the market is watching closely how Chinese firms will expand their production capacity in the second quarter, and he cautioned that if their quality is good enough to satisfy customers, their supply will increase significantly and affect product prices.
BOE Technology Group, one of China's leading flat panel makers, is likely to ship more than 2 million TV panels in the second quarter, up from an estimated 700,000 units for the first quarter, according to Digitimes.
The research firm said Taiwan is expected to account for 35.1 percent of the global large-sized flat screen market in the second quarter, down from 35.2 percent in the first quarter.
Although shipments are expected to post a quarter-on-quarter increase, the second quarter figure may fall 4.8 percent from a year earlier, Digitimes Research said, in large part because of the retreat of Hannstar Display Corp. and Chunghwa Picture Tubes Ltd. from the large-sized flat panel market.
(By Pan Chi-i and Frances Huang)