TrendForce has reported that global shipments of large-size panels dropped five per cent on month to 68.21 million in July. LCD TV panel shipments reached 20.86 million, down 0.4 per cent on month, while monitor panel shipments reached 12.72 million, a 5.6 per cent decrease, as LCD TV panel applications strained production capacity.

Meanwhile, notebook panel shipments, fell 5.8 per cent to 15.32 million due to increased demand for smartphones, while tablet panel shipments dropped 8.4 per cent to 19.27 million as Apple adjusted reserves in anticipation of the release of a new iPad in 2H14, according to WitsView, a subsidiary of market intelligence firm TrendForce.

Panel shipments in August vary considerably across different industry sectors. Large-panel shipments have continued to fall into this month, while TV panel shipments are expected to remain flat, said WitsView senior research manager Jeffy Chen. However, surface area shipped is increasing, Chen said. Additionally, WitsView believes this month handset production will affect IT panel shipments and monitor panel shipments may decrease by 1-2 per cent. Tablet panel shipments are expected to decline one per cent and notebook panel shipments to remain flat.

Growth in the traditional IT market has slowed in recent years, Chen said. "Demand for smartphone and tablet apps is a driving force behind slowing growth in the traditional IT market," he said. "Panel makers have been further turning to high-generation facilities to produce smartphone panels and small-size tablet panels to stay profitable and maintain production efficiency." Samsung Display is one example of a firm that has boosted production of mobile device panels while decreasing its manufacturing of notebook panels. LG Display, meanwhile, has reduced its notebook panel manufacturing in order to up smartphone panel production on its 5G and 6G lines as well as for Apple and China-based customers. WitsView said these moves by Korean manufacturers will cause notebook panel shortages and push orders to Taiwan and China vendors. For instance, China-based BOE is stepping up efforts to produce 14in and 15.6in notebook panels on an 8.5G line, which is attracting large numbers of customers.

Taiwan-based Innolux is the firm benefiting the most from the notebook panel market's shifting dynamics. Innolux is dedicating a 5.5G line to production of 14in notebook panels and improving cost structures for other sizes. Notebook vendors have taken notice and are snapping up the cheaper panels, helping Innolux to gain greater market share. Innolux led the industry with a 27 per cent share in July, as it surpassed Samsung, LG and AUO.

Innolux's success has contributed to Taiwan manufacturers leading the global notebook panel market with a 46 per cent overall share, down from 48 per cent in Q1, and higher than the 45 per cent share of Korean vendors, which has remained unchanged thus far in 2014. In 4Q13, Korean vendors held a 48 per cent market share and their Taiwan counterparts 45 per cent.

By: DocMemory
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