2017 is gone, and we are here to look back on the past year and start predicting what will happen next year. This year's display industry has experienced a tough second half, which is due to adjustments in inventory and procurement.
We expect continued oversupply next year, mainly due to new factories in China, but the strong growth of demand area is also predictable, so the reorganization of the old panel plant and the smooth climb of the new plant will be the key to the supply and demand.
Supply and demand 2017: Capacity growth is constrained by the reorganization of the Panel factory and the closure of the old panel plant, while the area demand is growing by more than 5%. In the first half of 2017, television manufacturers were buying aggressively, but they did not meet sales targets, so inventories remained. Since the end of the second quarter, television makers have begun to reduce purchases, but panel suppliers are trying to push sales at lower prices rather than lower production.
This led to a glut of TV panels and lower panel prices. 2018: Panel demand growth is expected to exceed 7%, while capacity growth is expected to be around 10%. The annual oversupply rate will be higher than 2017. However, Ihsmarkit forecast panel supply and demand will increase due to the first half of the Winter Olympics and the FIFA World Cup and other sporting events related to pre-promotion. On the other hand, 10.5-generation factory production could lead to oversupply.
The continuous transformation and reorganization of the old panel plant and the smooth climbing of the new plant will be the key to the supply and demand.
TFTLCD capacity strategy with drastic changes 2017: With the increase in production capacity of 8.5 generations, the proportion of glass input to it products increased, some panel suppliers will be willing to transfer their IT capacity from 5 or 6 generations to 8.5 generations. BoE has increased the capacity of its 8.5-generation plant for mobile PC and desktop computer display applications.