As uncertainty in the panel market continues into the third quarter, industry leading TFT LCD panel makers such as Chimei Innolux (CMI) and LG Display both recently decreased their capex budgets. Such action may help ease oversupply in the market. Market watchers also expect AU Optronics (AUO) to lower its capex for 2011. Samsung has indicated no plans to decrease its capex.
- CMI: NT$100 billion → NT$70-80
- LG Display: KRW5 trillion → KRW4
Overall 2011 CAPEX might be on the decline but there is a silver lining: LTPS, and OLED. CMI has plans to double its low temperature poly-silicon (LTPS) capacity by investing NT$11 billion. LG Display forges ahead in building the world’s largest Gen. 8 OLED fab.
Update: Samsung announced second quarter 2011 results on July 29:
Samsung said the annual projected capex of 23 trillion won remained unchanged, however a shift in allocation to increase semiconductor and reduce LCD investment was possible.