The single effect of the panel appears to slow down the price of upstream components

Since February the rate of acute single effect, in addition to a booster used for Taiwan panel plant has long been weak capacity, for component manufacturers upstream, gradually return the order also eased over the past two seasons has faced heavy pressure on the operation. WitsView component analyst Qiu Yubin predicted that the second quarter of 2009, the price of zero component prices will be significantly lower than the fourth quarter of last year and the first quarter of this year slowed.

The second quarter component price decline slowed down mainly due to include: 1 most materials manufacturers have been in the past two seasons in response a considerable degree of decline, and then adjust the space is relatively limited; 2 with panel factory operating rate rise, before be forced to cut prices to attract buyers also have the inventory digestion is completed; 3 main components suppliers supply layout has been generally established, and there is no necessity to grab the price in a short time; the 4 panel factory has been part of the negotiations center transferred to material factory with delivery, the price level is no longer the only key.

Relatively speaking, the backlight module because of the materials used, including cold cathode, optical film, plastic parts, iron and even LED, due to the recent price adjustment is still the overall decline relative to other components slightly higher.

Qiu Yubin further said that due to the second quarter of 2009, the overall demand for visibility is still not high, it is expected that the urgent single phenomenon will become the norm. For the upstream material factory, frequently in the past 2-3 months to do long-term planning and adjustment of material conditions, now because of the need to meet customer's delivery in a short period of time, while the stock sharply compressed time. The high degree of customization, sharing and low stocking time components, including IC, T-con and Inverter drive, in the next season, I will still face the urgent delivery, even to the convergence of the material condition.

Panel plant to support the group has been established in the industry trend. In the current demand is still not very clear circumstances, does not belong to the integration of the chain of the manufacturers, unless they have an absolute advantage in R & D technology and production costs, it is often the primary goal of order adjustment.

This phenomenon is obvious in the high ratio of the color filter, the group to integrate the general polarizer, as well as the relatively small size of the optical film industry. Because of reduced orders caused by the flow of funds is slow, and even appeared in the gap, let these firms face more difficult industry survival.