Sources at panel makers claim shortage of 17" LCD displays will likely persist this year and that 19" and 22" widescreen panels may also run into supply problems this year:
The supply of 17-inch monitor panels was tight in 2007 because only a few panel makers were producing for the segment and supply will still be limited this year, the panel makers pointed out.
To meet demand for small- to medium-size panels and notebook panels, some panel makers such as AU Optronics (AUO) and LG.Philips LCD (LPL) are shifting their monitor panel production to plants of sixth-generation (6G) and above. Most of LPL's 5G capacity will be dedicated to notebook panels and only a small volume of the capacity will allocated for the 22-inch widescreen segment.
Due to gross margin considerations, panel makers are producing medium-size or notebook panels at 5G lines, which may squeeze capacity for the 19-inch widescreen segment. This may worsen the shortage of 19-inch widescreen panels in 2008. The 19-inch widescreen segment is not produced efficiently on a 6G line.