Panel oversupply LED chip prices fell by 50% compared with last year
According to a Japanese media report, due to the sluggish sales of thin TVs, the panel prices fell, causing the panel makers to fall into losses, and they have asked the materials factories to cut prices. An analyst pointed out that under the oversupply, the price of LED chips has dropped by 40% to 50% compared with a year ago.
The report pointed out that the decline in panel prices forced the panel makers to make design changes, reducing the number of LEDs mounted on each panel by 30% to 40%, causing the LED demand to begin to exhibit structural passivation. Due to the oversupply of the panel, the demand for glass substrates fell into a slump. From July to December 2011, the average price of the substrate fell by more than 5% compared with the same period of last year. The Japanese substrate manufacturer Asahi Glass also predicted that the price decline in January-March 2012 will accelerate. It will fall by more than 10% in the first half of the year.
Since the first season belongs to the off-season of LCD, although some panels have increased prices, the overall average price is still untouchable. Panel makers AUO and CMO cannot increase their profits by increasing the price. Only the components factory is required to operate. More price concessions to reduce losses.
Supply chain sources said that the capacity utilization rate of AUO and CMO continued to rise in the first quarter, and the panel factory resumed pulling the goods to the component factories, and simultaneously requested price cuts to win more orders.
The report pointed out that the decline in panel prices forced the panel makers to make design changes, reducing the number of LEDs mounted on each panel by 30% to 40%, causing the LED demand to begin to exhibit structural passivation. Due to the oversupply of the panel, the demand for glass substrates fell into a slump. From July to December 2011, the average price of the substrate fell by more than 5% compared with the same period of last year. The Japanese substrate manufacturer Asahi Glass also predicted that the price decline in January-March 2012 will accelerate. It will fall by more than 10% in the first half of the year.
Since the first season belongs to the off-season of LCD, although some panels have increased prices, the overall average price is still untouchable. Panel makers AUO and CMO cannot increase their profits by increasing the price. Only the components factory is required to operate. More price concessions to reduce losses.
Supply chain sources said that the capacity utilization rate of AUO and CMO continued to rise in the first quarter, and the panel factory resumed pulling the goods to the component factories, and simultaneously requested price cuts to win more orders.
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