IHS Markit technology research (now a part of Informa Tech) has confirmed that the COVID-19 coronavirus crisis is impacting production at display panel factories located in the semi-quarantined city of Wuhan, China and is spurring a significant near-term reduction in the global supply of panels used in liquid crystal display televisions (LCDs) and other products.
It said that “The five factories in the city producing liquid crystal displays (LCDs) and organic light-emitting diode (OLED) panels will experience near-term slowdowns in production compared to expected levels”.
With the situation evolving quickly, IHS Markit technology research says that it is still assessing the magnitude of the supply shortfall on multiple display types and markets. However, leading Chinese panel makers have already said that total capacity utilisation for all LCD fabs in the country could fall by at least 10 percent and perhaps by more than 20 percent during the month of February.
David Hsieh, senior director, displays, at IHS Markit technology research told us “Display facilities in Wuhan currently are dealing with the very real impacts of the coronavirus outbreak. These factories are facing shortages of both labor and key components as a result of mandates designed to limit the contagion’s spread. In the face of these challenges, top display suppliers in China have informed our experts that a near-term production decline is unavoidable”.
With China expected to own 55 percent of global display manufacturing capacity in 2020, the immediate impact of the production reduction has been a worldwide decrease in availability and an increase in pricing for LCD-TV panels. This has resulted in turmoil throughout the display supply chain as suppliers and purchasers alike scramble to adjust to swiftly changing market conditions.
The leading Chinese suppliers of LCD panels for TVs, notebook PCs and PC monitors now are planning to raise panel prices more aggressively. Notebook and monitor makers might also face panel shortage as a result of coronavirus-related production challenges.
On Wednesday May 13 as part of London Digital Signage Week, IHS Markit’s Julie-Anne Badier, Research Analyst – Digital Signage | Technology Research Products & Solutions will be presenting ‘The LED Video Market Evolution in Western Europe’ at the Global LED Summit.
This event will take place at #SamsungKX in London.
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