In its Quarterly Large-Area TFT LCD Shipment Report, DisplaySearch revealed that weak demand and inventory adjustments by set manufacturers in the third quarter caused the shipments of large-area TFT LCD panels to decline one percent to 116 million units over the last quarter.
Shipments were up seven percent year over year. But compared to year-over-year growth of 40 percent in Q4 ’07, 42 percent in Q1 ’08 and 23 percent in Q2 ’08, that number represents an overall decrease in shipments.
Q2 ’08 shipments of 117.7 million large-area panels was the largest amount ever produced and shipped in a quarter, DisplaySearch reported, but had led to an over-supply. Panel makers are now suffering from a lack of orders and have reduced capacity.
Display search believes that panel makers are trying to maintain the same shipment volumes of 116 million units for the fourth quarter and expects a one-percent decline in Q1 ’09. Most panel suppliers, however, are planning to increase shipments in Q2, assuming that inventories will have been depleted and the economic conditions will have improved, the analyst reported.