Rebecca Kuo, Taipei; Steve Shen

 

Demand for LCD TV panels in China will begin to subside in the second half of January before picking up again in March when TV vendors begin to build up inventory for the May 1 holiday season, according to industry sources in Taiwan.

Shipments of large-size panels from AU Optronics (AUO) and Chimei Innolux (CMI) posted significant gains in November and December, buoyed by orders from China-based TV vendors who have been increasing their output recently for the Lunar New Year buying season, indicated the sources.

With panel inventories at China-based TV vendors now reaching 3-4 weeks, they are likely to reduce their TV panel orders for the second half of January and February, said the sources.

As a result, panel makers are expected to lower their capacity utilization rates in the January-February period to avoid a stockpile of inventory, while waiting for a pick-up in demand in March.