The market research organization DSCC (Display Supply Chain Consultants) released a new report stating that with Samsung Display (SDC) and LG Display (LGD) discontinuing the production of LCD monitors, it is expected that global LCD production capacity will decline by 2023.
At present, home isolation has become a trend, and the demand for notebook computers, LCD TVs and other products has surged, causing the sales of LCD panels to continue to grow. In addition, MiniLED backlight technology has significantly improved LCD performance, further narrowing the performance gap between LCD and OLED in the high-end IT and TV markets. As a result, LCD prices continue to remain high, and manufacturers have sought to expand production.
However, DSCC predicts that as the supply improves and the shortage of components such as glass and driver ICs is resolved, the price of LCD panels will begin to fall from the end of 2021 or early 2022. However, in view of the fact that SDC and LGD will eventually discontinue LCD production, it is expected that LCD production capacity will decline by 2023, which will inhibit further price declines.
DSCC pointed out that in 2020, the LCD production capacity of Korean panel manufacturers will account for 13% of the total global LCD production capacity. SDC and LGD will eventually shut down South Korea's LCD production capacity.
However, due to strong market demand, the two South Korean companies exited the LCD market later than expected. Among them, SDC is expected to close all its LCD production capacity by the end of 2021, and LGD is expected to close all production capacities except P9 and AP3 by the end of 2022. This may make LCD panel prices rise again at the end of 2022 or 2023.
However, the report pointed out that because many panel makers in China are investing in expansion, it is expected that LCD production capacity will increase by 5% by 2024, or a new round of price drops may be initiated.