Recently, the market research organization TrendForce released a report saying that global demand for LCD panels is expected to peak soon, and it is expected that there will be an oversupply in the second half of this year.
The price of LCD panels has continued to rise from the second half of 2020. According to market research company Omdia, the price of 55-inch UHD LCD panels has more than doubled in a year, rising more than 20 percent this year and reaching 223 last month.
The continued growth is related to the increasing demand for consumer electronics and IT products triggered by the global epidemic, as well as the recent insufficient supply of panel and driver ICs. However, demand may shrink in the second half of the year, and the shortfall in supply is expected to be resolved.
Market research firm TrendForce recently reported that the global panel oversupply in the second half of the year will rise from 2.4 percent to 2.9 percent . "Given that the increase in demand begins in the second half of 2020, the upcoming decline may be driven by the base effect."
According to industry companies, it is unlikely that prices will fall rapidly. "The companies that dominate the LCD market can control supply to maintain market balance." At the same time, Samsung, LG and other companies have also planned to phase out LCD production capacity and focus more on high-end panels such as OLED.
