LG Display (LPL) Plans to Suspend Some LCD Production for 12 Days to Reduce Inventory

LG Display (LPL), one of the largest LCD manufacturers in the world and the largest maker of IPS LCD panels, will be suspending some LCD production lines starting December 24 and ending January 4, 2009. Perfect timing for the holiday season: engineers, marketing, sales, and executives can go home to their families and enjoy a relaxing Christmas and an exciting New Year. LPL’s production level will decrease by about 20% during this time. This news is not surprising and LPL really did a good job in terms of timing. The first half of each calendar year is usually slow in general for high-tech and especially for TV sales.

There has been a sever imbalance of supply and demand for LCD goods. LCD panel production capacity is based on a global economy that could consume about 115 to 120 million LCD TVs; of course, depending on the size mix. However, it looks as though global LCD TV shipments will be around just 100 million. The 15% to 20% oversupply results in LCD panel prices collapsing and the guys that make the LCDs don’t want that to happen. We saw many LCD manufacturers throttle LCD fab utilization rates earlier this year. And now? We’re talking 50% utilization rates. I don’t see TV demand to pick up any time soon. But, in my opinion, prices will continue to come down, just not as fast.

Source: DigiTimes

[tags]LG Display, LPL, LCD Manufacturer, Display Manufacturer[/tags]

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