July shipment results for Taiwan LCD manufacturers were weaker than expected. The top two LCD makers, AU Optronics (AUO) and Chi Mei Optoelectronics (CMO) originally planned to reduce LCD fab utilization rates by about 10% and at most by 15%. With shipment results poorer than expected due to weak demand, AUO and CMO are planning to reduce utilization rates by 15% to 25% in Q3’08.
July shipment results did have a bright spot: notebook PC panel shipments. LCD shipments for notebook PC applications remained stable in July. With lower utilization rates by the top two LCD suppliers in Taiwan, the supply and demand balance should shift toward away from an oversupply situation for LCD monitor and LCD TV panels.
Although everyone is expecting Q4’08 to have a strong rebound in sales, I am not so optimistic. With the US being the largest single market for LCD goods, the consumers here will most likely be tightly guarding any disposable income, more so than before as easy credit is hard to come by with the overall unemployment rate climbing.
[tags]AU Optronics, AUO, Chi Mei Optoelectronics, CMO, Display Manufacturer, LCD Manufacturer, LCD Supplier, LCD TV, Notebook PC, LCD Monitor, Utilization Rate[/tags]