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Q2 growth in output of large-sized flat panels to be limited: report

2012/05/18 20:07:04

Taipei, May 18 (CNA) Taiwan's large-sized flat panel sector is expected to post only mild quarter-on-quarter growth in the current quarter despite having left behind the slow-season effect seen in the first three months of the year, a government report said Friday.

The report released by the Industry and Technology Intelligence Services (ITIS) said output growth would also be limited because some flat screen makers have shifted part of their large-sized panel capacity to produce small and medium-sized displays.

The output of Taiwan's large-sized panel sector is expected to total NT$164.8 billion (US$5.56 billion) in the second quarter, up about 8.7 percent from the NT$151.6 billion in output posted in the first quarter.

Large-sized panels refer to screens that are 10-inches or larger and used in TVs, notebook computers and desktop computer monitors.

The report, prepared by the Industrial Technology Research Institute on behalf of the ITIS, said prices of screens for TVs, notebook computers and desktop computer monitors rose US$1-US$2 (NT$29.63-NT$59.26) per unit from March due to buyers' restocking.

Steady pricing growth for 26-inch, 32-inch and 40-inch TV screens, the mainstay products of the sector, has also been seen since the beginning of this quarter, the report said.

But the rebound in prices may be short-lived because of the adverse effects on demand by an already fragile global economic recovery and rising concerns over the debt crisis in the eurozone, the ITIS said.

During the April-June period, Chimei Innolux Corp. and AU Optronics Corp. (AUO), the top two flat panel makers in Taiwan, are expected to benefit from their shipments of 39-inch and 50-inch TV panels to boost second quarter sales, the ITIS said.

In terms of small and medium-sized screens, output for the second quarter of this year is expected to fall 1.5 percent from a quarter earlier to NT$44.5 billion on sluggish demand affected by economic uncertainty, the report said.

The output of organic light-emitting diode (OLED) panels by producers in Taiwan is expected to reach NT$1.55 billion in the second quarter, slightly up from NT$1.54 billion recorded in the first quarter due to AUO's shipments of active-matrix organic light-emitting diode (AMOLED) screens, the report added.

(By Pan Chi-i and Frances Huang)