Panel plant has yet to break away from the loss of market demand and the advent of low tide

According to Taiwan media reports, although the first half of the 2005 panel factory after serious losses, in the second half of the working people more optimistic, the panel can maintain the glory of fear will not long. According to research firm WitsView statistics, the panel boom in the first quarter of 2006 (Q1), the new season and the off-season production of traditional manufacturers out of other factors, the panel will also begin to deteriorate the degree of pile up in excess of requirement, and is expected in 2006 Q2 is the most serious situation, supply exceeds demand ratio will reach 12%. In the second panel factory just out of the operational difficulties, but they have to start the face of a new wave of business cycle began, manufacturers also predict this will deepen the operational difficulties of the second panel plant.

The LCD panel industry into a new cycle in early 2005, and offer some of the size of the panel began to back up, while AUO (2409) in May began a single month turnaround, the operating performance of Taiwan Total panel factory the first half of 2005, they still can not get rid of the fate of the loss, the CPT (2475), color crystal (6116) and Hui (3012) the amount of loss in the first half, were up to NT $7 billion yuan.

Although the common panel factory, the second half of the year because the average market price rise, the panel panel (ASP) supply and demand will still be in a healthy situation, will be beneficial to the panel factory gradually turn into profit; but WitsView general manager Wang Hewei said that in 2006 Q1, the imbalance between supply and demand worries and fear panel will appear, and the proportion of pile up in excess of requirement and by 2005 5.7% of Q4 to 6.5% and Q2 Q1 in 2006 12%. Through the reverse of the panel boom, no doubt will make the profit has just improved the panel factory, have to face a deeper loss and competitive pressures.

In fact, the second panel factory is facing more serious challenges, in addition to a second operation, plant the magnitude of losses pull large, second tier manufacturers in the next generation production line layout is generally backward, fear will become the future second tier manufacturers fatal.

Wang Hewei pointed out that although the manufacturer later than the next generation investment capacity deployment, because of the increased stability of equipment and shorten the learning curve; but on the LCD TV (LCD TV) panel supply, terminal manufacturers in addition to consider whether the panel factory capacity to meet the needs of customers in the terminal, considering factors such as seeking stable supply no, and no doubt the "collapse" with the panel factory situation is more and more obvious, so fear will also allow the second panel factory due to the loss of the mainstream customer orders and more retreat.

However, it is worth noting that, even if the first half of 2006, the proportion of panel pile up in excess of requirement may expand, but the panel manufacturers also pointed out that, after repeated crystal cycle, the future panel factory irrational price to grab a single should be slowed down, so the first half of the 2006 panel boom although fear because of strike slip pile up in excess of requirement but the price. Will not collapse phenomenon.