Table Courtesy: Baird W. Baird & Co.
According to Baird, inventories for TFT LCD panels and LCD components declined to historic lows in the first quarter of 2009. First quarter inventory days declined 5 days or 13% Y/Y from 33 days in Q1’08 to 28 days in Q1’09 for TFT LCD panels. LCD component inventories declined 14 days or 16% Y/Y from 84 days in Q1’08 to 70 days in Q1’09. On the other hand, display ODM inventories increased 9 daysÂ or 35% Y/Y from 24 days in Q1’08 to 33 days in Q1’09. What that means is that there are still significant number of finished LCD goods that have built up during the first quarter most likely due to demand for LCD goods not meeting expectations. The LCD supply chain has been reacting to the lowered demand for LCD goods as can be seen by LCD panel and LCD component manufacturers lowering production levels to meet the current level of demand.