Display panel prices may increase by as much as 10 percent quarter-on-quarter in the fourth quarter of 2020, according to TrendForce.
Display panel prices rose significantly quarter-on-quarter in Q3. In particular, prices for NB (notebook computer) panels increased by 5-10 percent quarter-on-quarter during the quarter. Increase in TV panel prices was above 30 percent.
The supply of large-sized panels is expected to exceed demand by 0.2 percent in Q4 and the shortage situation for certain panel applications is expected to persist.
TrendForce research vice president Eric Chiou believes that TV panel quotes may remain at a peak level after continuously rising in Q4, primarily because the stable state of slightly tight supply is yet to be disrupted.
Due to high demand for IT panels, panel makers are yet to transition their production capacity from IT panels to TV panels on a large scale though TV panels have been seeing a noticeable rise in both quotes and profitability.
The supply of TV panels has become constrained due to factors such as the shuttering of SDC’s panel manufacturing operations and the slight shortage in Gen 10.5 glass sheets. In light of these supply-side limitations, the global supply of TV panels is expected to decrease by 3.8 percent quarter-on-quarter in Q4.
The most pressing concern on the demand-side of the market is whether TV brands will be forced to raise prices on their TV sets after TV panels undergo a significant price hike. The upturn in TV prices will hamper the sales performance of TV sets. Channel distributors and TV brands have negotiated to suppress the upturn in TV prices until possibly early 2021 in the North American market.
The shortage of 11.6-inch panels, which are correlated with Chromebooks, is unlikely to be fully resolved. The 2-4 percent month-on-month increase in 11.6-inch panel prices is expected to persist until Q4.
The demand for desktop monitor panels falls short of the demand for NB panels, but the tight supply of gaming monitors and curved monitors is expected to result in unchanged prices or a slight quarter-on-quarter increase for desktop monitor panels in Q4.
