Loading capacities of display enterprises will be high five quarters in a row

30 August 2017, 08:46 | Technologies
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Loading of enterprises for the production of displays will remain at an equally high level for five quarters in a row. This forecast was made in the analytical company IHS Markit.

In the third quarter of 2016, the capacity utilization rate at the screen manufacturing plants for various electronics rose to 90% from 86% three months earlier. Since then, the indicator is kept at the level of 89-90%. In the third quarter of 2017 is expected to increase to 91%.

"One of the main factors contributing to the increase in the load in the last few quarters is that manufacturers of displays guarantee the optimization of their stocks at high levels," says Alex Kang, senior analyst at IHS Markit,.

According to the researchers' forecasts, the production of large liquid crystal displays, which account for the lion's share of products in terms of the total area, will be 2.2 times greater than the actual supply of products in the third quarter of 2017. This is due to the fact that vendors are stockpiled for future use or want to have the opportunity to maneuver within their strategy to compensate for any unforeseeable reduction in business utilization and rising costs.

"As a result, the stock of products from panel manufacturers will increase, but will remain within normal limits," Kahn said..

Analysts expect that manufacturers will be to maintain high capacity utilization rates to the end of 2017.

Experts WitsView, a research division of the analytical company TrendForce, predict a decline in world shipments of LCD panels for TVs in 2017. It is expected that the producers will release 255.6 million TV panels in total, which is 1.8% less than in 2016. At the same time, an increase in the average screen size will lead to an increase of 7.3% of the total area of ??

TV displays produced.

According to experts, manufacturers are increasing the production of larger TV panels for two main reasons. First, there is an abundance of 55-inch displays on the market, and to differentiate, vendors are expanding the range of large-format displays. In addition, because of the high prices on the panel, the prime cost of TV sets is rising, so TV brands are trying to produce more high-margin premium models with 65 and 75-inch screens.




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