Most TFT LCD makers expect the oversupply to ease a bit in the fourth quarter on sliding panel prices and production reallocation from LCD monitors panels to notebook panels.The Taiwanese research firm Topology Research reported however that they expect an oversupply of 8% in the third quarter, and a 6% oversupply in the fourth quarter because of increasing demand for notebook and LCD TVs in that quarter.
Chunghwa Picture Tubes (CPT) projects supply to exceed demand by 12.1% and 10.8% in the third and fourth quarter, respectively. However, the overall oversupply should in fact remain at only 5-8% in the second half, as companies reduce production and reallocate capacity, the company added.
AU Optronics (AUO) forecasts supply to surpass demand by 5% in the third quarter and then ease to 3% in the fourth quarter. Samsung Electronics optimistically estimates a mere 0.2% oversupply in the third quarter, with a slightly higher oversupply (1.2%) in the fourth quarter.
DisplaySearch expects an oversupply of 12% in the third quarter on diminishing demand and larger capacity from TFT LCD makers. In the fourth quarter, oversupply should slide to 8% as demand begins to pick up. However, a possible tight supply of key components would result in an oversupply of only 6% in the third quarter, according to DisplaySearch.