According to relevant data, shipments of large-size (9-inch and above) TFT LCD panels produced by Taiwanese manufacturers (excluding Sharp) reached 64.79 million in the third quarter of 2018, up 4.4% from the previous month and up 5.6% year-on-year. .
The lower-than-expected performance in the third quarter was due to the weak demand for tablet panel shipments due to weak demand for tablet PCs in the end market, especially white-box tablets. Looking ahead, shipments of large-size panels in Taiwan are expected to decline by 2% in the fourth quarter, as demand from end-market equipment suppliers will be weak due to seasonal factors.
As for TV panels, tablet manufacturers are increasing shipments of models larger than 50 inches to meet the growing demand for large-size TVs, while reducing the shipments of panels below 40 inches due to lower profits, overall TV Panel shipments will decline slightly in the fourth quarter.
The growth momentum of IT panels (including display and notebook applications) will also slow in the fourth quarter, as manufacturers are ready to place orders in advance in the last quarter.
Shipment of tablet panels is expected to continue to decline during the period from October to December, mainly due to reduced demand for tablet PCs in the end market and Taiwan manufacturers' failure to obtain panel orders for the new iPad product line.
Overall, the new production capacity of China's large-size panels will further weaken Taiwanese manufacturers' order visibility in this segment. At the same time, LG Display and China's panel makers are increasing shipments of notebook panels to compensate for the lack of supply due to Samsung's decision to exit the notebook panel segment.