Another poor result by a LCD manufacturer (see CMO’s November results). This time it’s HannStar. November revenues declined 36.5% M/M and 75.29% Y/Y to NT$1.97 billion. LCD shipments for monitor applications were down 34.5% M/M to 503K units. Medium-sized (small/medium?) LCD shipments declined 23.1% M/M to 1.4 million units. Average utilization rate in Q4’08 is expected to range from 65% to 75%. HannStar’s G5 TFT fab is estimated to be at around a 50% utilization rate in Q4’08. Dismal news.
I see consolidation looming in the near future. The smaller LCD suppliers will either be forced to sell the entire company to another or sell in bite-size chunks. The larger LCD suppliers such as Samsung, LG Display (LPL), AU Optronics (AUO), Chi Mei Optoelectronics (CMO) and Sharp may be looking for opportunities right now.
[tags]HannStar, Display Manufacturer, LCD Manufacturer[/tags]