HannStar May Stop Selling Large-Area LCD Panels on Open Market

HannStar Display (HSD) is a small Taiwan LCD supplier among giants such as AU Optronics (AUO) and Chi Mei Optoelectronics (CMO). LCD panel prices have dropped like a rock over the last several months and most LCD manufacturers are not making much profits, if at all, on LCD panels.

Major suppliers such as LG Display (LPL), AUO, CMO and others have reduced LCD fab utilization rates to restore the supply and demand balance but due to demand for LCD goods souring on a global basis the reduced utilization rates have had little impact to stall price declines. HSD’s utilization rate in November was 50% and that number is expected to decline in December. Come January 2009, due to reduced work days thanks to long holidays, HSD’s utilization will continue to decline.

Because of the excrutiatingly difficult environment, HSD is considering selling its LCD panels only to its in-house brand: HannsG. HSD’s total LCD monitor panel shipments in November (including to HannsG) decreased 34.5% M/M to 503K units. It is my opinion that HannsG will require rock-bottom prices as well since the brand’s strength is affordable pricing. Even if HSD were to sell just to HannsG there will need to be internal fund transfers to keep HSD from hemoraghing money.

Source: DigiTimes

[tags]HannStar, HannStar Display, HSD, Display Manufacturer, LCD Manufacturer[/tags]

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