More details are as follows:

• TV

After May, the momentum of stocking up on television panels starts to weaken, particularly in the medium-sized and small-sized television panels due to decreased demand. As a result, the momentum for overall panel price increases tend to gradually slow down.

Whether panel manufacturers will once again initiate their strategy of producing on-demand over the next two months, thereby correcting the high-end utilization rate of over 80% to support the trend in panel prices, will be a key point for observation in the near term.

Looking at the price increases of television panels in May, it is expected that the prices for 32-inch, 43-inch, and 50-inch will stabilize, while 55-inch panels will increase by 1 USD and 65-inch and 75-inch will increase by 3 USD.

• MNT

With regard to MNT panels, demand from brands remains robust. On the other hand, panel manufacturers’ urgent desire to boost panel prices as much as possible during this wave of price increases, driven by aim to achieve a turnaround in the deficit situation for MNT panels, also helps on the relatively proactive stance towards the panel price trend in May.

Currently, it is expected that in May, the prices of MNT panels will increase. Open Cell panels are expected to rise by 0.5 to 0.7 USD. Among panel modules, the 21.5-inch is expected to increase by 0.5 USD, the 23.8-inch by 0.6 USD, and the 27-inch panel by 0.5 USD.

• NB

Looking at NB panels, although demand for panels has started to pick up noticeably compared to the first quarter, rebounding from the seasonal downturn, the increase is still lower than initially expected. This reflects the high uncertainty among brand customers regarding future end-demand, making it difficult for clear signals of panel price increases to emerge.

Panel manufacturers also find it challenging to establish a strong and consistent consensus on panel pricing strategy due to the lower-than-expected growth in demand.

It is currently expected that in May, the prices of NB panels will see only a slight increase. For HD TN models, where supply is limited and demand is relatively good, coupled with lower prices, there is a chance of a marginal increase of 0.1 USD.

For FHD IPS models, where there are more suppliers and fiercer competition, some panel manufacturers hope to follow the price increase of HD TN models and raise prices by 0.1 USD as well. However, this still depends on the attitude of brand customers.

Read more

• [Insights] April Panel Prices Update, TV Upward Trend Stabilized, Monitor Panel Increases Expanding
• [Insights] March Panel Prices Update, TV Brands Further Increased, Notebook Panel Prices Await Clear Direction

According to the Korean media “The Elec,” Samsung’s MX division has decided to utilize the technology from Sony instead of the technology from the group’s SDC, reflecting Samsung’s need for a new technology manager to oversee new semiconductor devices (referring to electronic components, such as OLEDs and transistors).

This newly created position for device development must oversee the technological advancement of all of Samsung’s electronic businesses, including Samsung MX, DS (chip division), displays, and motors. If Samsung’s subsidiaries had collaborated closely from the outset, then Samsung’s MX division might have adopted SDC’s technology instead of Sony’s. A similar situation has also occurred with the glass substrate developed by Samsung Electronics.

“The Elec” believes it is strange that SDC has not collaborated with the group’s companies on OLEDoS technology, as SDC has expertise in glass processing. This highlights a lack of clear roles and responsibilities within Samsung, which is a significant waste of internal resources.

OLEDoS and glass substrate microdisplays require close cooperation between departments such as semiconductors, displays, circuit boards, and display glass processing technology. If these departments are well integrated, it could bring opportunities for Samsung, as the company has departments capable of handling all related technologies.

However, the current situation does not reflect this. SDC initiated the M project at the end of 2022, aimed at developing OLEDoS and LED on Silicon technology. But SDC losing to Sony now means the former will lose valuable production experience.

(Photo credit: Samsung)

An earthquake with a magnitude of 7.2 on the Richter scale occurred at 7:58 AM Taiwan time on the 3rd, with the epicenter located 25 kilometers south-southeast of Hualien.

The regions densely populated with semiconductor and panel factories, Taichung City and Hsinchu County, experienced a maximum seismic intensity of level 5, while Hsinchu City and Tainan City reached a maximum seismic intensity of level 4.

The Hsinchu Science Park Bureau reported that TSMC and UMC in Zhunan have partially shut down for precaution, Innolux Corporation in Zhunan also partially ceased operations, while all employees at King Yuan Electronics and Taimide Tech have been evacuated. Display maker AUO, as well as semiconductor supply chain companies Macronix, PSMC and UMC in Hsinchu Science Park are operating normally.

The bureau also stated that electricity supply in various parks within Hsinchu Science Park is normal. However, there are anomalies in the water supply at the  Biomedical Science Park and Tongluo Science Park, which are currently under investigation; all other parks and construction sites within Hsinchu Science Park are operating as usual.

In another statement by the Southern Taiwan Science Park Bureau, Innolux’s Plant B, TSMC’s Fab 18, and Hannstar in the Southern Taiwan Science Park recorded a seismic intensity of level 4, while Innolux’s Plant F in Kaohsiung measured a seismic intensity of level 3. Companies within the area reported no impact.

For further updates on the aftermath and damage assessment, please follow TrendForce News closely.

(Photo credit: USGS)

As ams OSRAM announced the unexpected cancellation of its key Micro LED project, it has prompted the company to reevaluate its Micro LED development strategy, as per TechNews’ report, speculation has arisen regarding the collaboration with Apple to introduce Micro LED technology into the Apple Watch Ultra 3. The cancellation may signify the end of this collaboration.

The first Apple Watch featuring a Micro LED display was originally scheduled for release in 2026, with rumors suggesting a potential delay to 2027 or later due to high costs. However, ams Osram’s recent announcement to cancel the Micro LED project undoubtedly sends shockwaves through the industry, casting a shadow over the integration of Micro LED technology into watches or other devices.

Unexpected Cancellation of the Micro LED Project

The ams OSRAM’s press release indicates that the management board of ams OSRAM has been informed of the unexpected cancellation of its Micro LED key project. Consequently, it has decided to re-assess its Micro LED development strategy, especially concerning the 8-inch LED fab in Kulim, Malaysia.

Upon preliminary estimation, ams OSRAM anticipates recording non-cash impairment losses of EUR 600 to 900 million related to Micro LED assets and goodwill in the first quarter of 2024. Currently, ams OSRAM is engaged in discussions with relevant clients.

This implies the changes to the capitalization of ams OSRAM’s investment into Micro LED R&D and the reduced subsidies from public funding schemes. These changes will impact ams OSRAM’s operational profitability (adjusted EBIT) for the fiscal year 2024, with estimated effects ranging from EUR 30 to 50 million.

In the information disclosed, ams OSRAM did not provide detailed specifics about the Micro LED project. Further information will be closely monitored by the industry. From the perspective of the Micro LED industry, there are still technological bottlenecks to overcome, such as chip efficiency, yield rates in mass transfer, achieving full colorization, and the immaturity of supporting industries. Cost reduction has yet to be effectively achieved, which may be one of the reasons for the project’s cancellation.

Micro LED Watch Project Not Necessarily Cancelled, Opportunities for Taiwanese and Korean Manufacturers?

Nevertheless, Apple has not abandoned discussions with other chip manufacturers, implying that the Micro LED watch project may continue. Taiwan and South Korea still maintain corresponding supply chains to support this, with downstream operations involving LG Display (LGD) in backplane and module production.

TrendForce points out that Ennostar has past experience collaborating with Apple, and PlayNitride is also a leading global Micro LED manufacturer. Furthermore, PlayNitride is part of the AU Optronics Group and can provide Micro LED watch chips and backplane transfer technology.

However, for now, the termination of the collaboration between Apple and ams Osram may also prompt other manufacturers to consider the risks of engaging in new partnerships with Apple. Apart from the initial substantial investment required, once the collaboration begins, Apple will actively seek out second suppliers, which are all aspects that need careful consideration.

From the current Micro LED supply chain outlook, TrendForce indicates that Micro LED has four main applications: large displays, wearables, automotive, and near-eye displays.

Samsung leads in large displays, and there is significant market anticipation for Micro LED smartwatches. AU Optronics continues to focus on Micro LED watches, but with a lack of synchronous brand influence, overall interest and development willingness from manufacturers may decrease compared to other brands.

Read more

• [New] The Reality of Micro LED Unveiled – Infinite Opportunities, Yet Initial Capacity Demand Remains Low

(Photo credit: ams OSRAM)

TV

Despite being a slow season for demand in January, panel manufacturers are actively trying to reverse the trend of TV panel price declines through extensive production cuts and maintenance plans.

Recent observations indicate that some Chinese brand customers are increasing their stockpile demand for the North American tax refund season in March-April.

On the other hand, the disruption in the supply of upstream polarizer materials due to the earthquake in Japan at the beginning of the month is also contributing to a stabilization in panel prices. Therefore, the price trend for TV panels in January is expected to see a rise in 32-inch panels, while 43-inch to 75-inch panels are expected to stabilize.

Monitor

Entering January, despite the onset of a slow season for demand, panel manufacturers are encouraging customers to stock up early due to the upcoming Chinese Lunar New Year in February.

Observations indicate that there is limited room for additional orders in the latter part of January. The shortage of upstream polarizer materials is also expected to impact some VA panels. Therefore, in terms of monitor panel prices for January, mainstream sizes such as 21.5 inches, 23.8 inches, and 27 inches are expected to stabilize, while Open Cell panels are expected to have a downward space of USD 0.1 to 0.2.

NB

After entering the first quarter of 2024, laptop panel demand has significantly weakened, as some customers increased their stockpiles at the end of the previous year. Brand customers are requesting panel manufacturers to lower prices, and panel manufacturers are adopting a relatively soft stance, resulting in downward pressure on panel prices.

Observations of laptop panel price trends in January show that 16:10 models, due to their higher unit prices, still have room for continued convergence with 16:9 models. Therefore, it is expected that the prices of 14-inch 16:10 models will decrease by USD 0.2, and 16-inch 16:10 models will decrease by USD 0.3, with a larger decline. Mainstream 16:9 IPS models are expected to decrease by USD 0.1, while 16:9 TN models are expected to remain stable.

As per Samsung Display’s news release, Samsung Display has indicated that Micro OLED achieves high-definition displays with small pixel sizes, achieved by applying organic materials to silicon wafers, playing a crucial role in the increasingly popular XR headsets.

Although the Micro OLED is only 1.03 inches, it has a pixel density of 3,500 PPI, making it the industry’s highest resolution RGB OLEDoS display, which utilizes red, green and blue OLEDs on silicon wafers to generate color without the need for a separate light source.

Samsung has previously acquired Micro LED developer eMagin last year. In addition, there are reports indicating that Apple is developing the second generation of Vision Pro, expected to be unveiled in 2027. It is rumored to adopt advanced RGB OLEDoS technology, and the acquisition of eMagin by Samsung also positions them to provide the necessary technology for Apple.

If Apple is interested in upgrading its Vision Pro 2 display tech, Samsung’s exhibit at CES 2024 could be considered a showcase, proving that its Micro OLED technology is gradually gaining ground, and that it has a potential chance of replacing Sony as a Vision Pro 2 display supplier.

Read more

• [News] Matching Apple’s Vision Pro Momentum? Rumors Suggest Samsung Expediting XR Device Launch in Early 2024
• [News] Apple’s Vision Pro Finally Set to Hit the Shelves – Available in the U.S. from February 2nd, 2024

(Photo credit: Samsung)

• TV

Entering the first quarter of 2024, despite the onset of a demand downturn, panel manufacturers are persistently implementing large-scale production cuts and maintenance plans, aiming to create opportunities for a reversal in supply and demand for TV panels.

Currently, observations since December indicate that ter 2 brands have begun increasing inventory for 32″ and 43″ panels, with signs of price increases emerging.

Therefore, the anticipated trend for TV panel prices in January suggests that 32″ and 43″ panels may be the first to stabilize, while the price decline for larger-sized panels is expected to moderate. A projected decrease of $1 for 50″ and 55″, and a decrease of $2 for 65″ and 75″.

• MNT

Entering 2024, despite current weak demand, panel manufacturers are encouraging early stocking through production cuts and scheduled maintenance plans to seek opportunities for stabilizing monitor panel prices.

Additionally, with potential risks in shipping routes in the current challenging environment, some customers, particularly those focused on the European and American markets, are intensifying their inventory plans.

Therefore, in the price trend for monitor panels in January, mainstream sizes such as 23.8″ and 27″ are expected to decrease by $0.1 and $0.2 for Open-Cell panels. There is also the possibility of further contraction of the decline.

• NB

After entering the first quarter of 2024, there is a noticeable decline in demand for NB panels. Brands urgently request panel manufacturers to lower panel prices. Additionally, the lower prices from Tier 2 panel manufacturers contribute to the ongoing downward pressure on panel prices.

Observing the price trend for NB panels in January, for 16:10 models, brands are aiming to narrow the price gap with 16:9 models due to the higher unit price. As a result, the 14″ 16:10 model is expected to decrease by $0.2, and the 16″16:10 model is anticipated to experience a larger decline of $0.3.

The mainstream 16:9 IPS models are expected to decrease by $0.1, while 16:9 TN models are expected to remain relatively stable.

Read more

• [Insights] The Panel Prices in Late December: Declines in TV, Monitor, and NB Applications

TV Panel:

As we approach the year-end, with less-than-ideal results from the Black Friday promotions, there’s only a modest demand rebound observed for channel-owned brands with better sales performance. Major first-tier brands continue to adjust their panel order demands.

However, panel manufacturers are actively controlling output and inventory levels through production cuts. They even announced a nearly two-week annual preventive maintenance during the Lunar New Year in the first quarter of the coming year to ease the pressure of falling prices, while creating an atmosphere conducive to a potential reversal in panel prices.

Due to the signs of an expanding production cut, the current observed decline in TV panel prices in December is comparable to November, with a $2 decline for 32″ and 43″, a $3 decline for 50″, a $2 decline for 55″, and a $3 decline for 65″ and 75″.

Monitor Panel:

For monitor panels, demand has remained weak throughout the fourth quarter. Panel manufacturers had only made slight concessions in prices for high-end models in the past few months. However, entering December, the pressure of price declines has extended to mainstream panel specifications. To maintain shipping momentum, some panel manufacturers have noticeably softened their pricing stance. The observed decline in December is expected to be $0.2 for 23.8″ Open Cell panels and $0.1 for 21.5″, 23.8″, and 27″ panels.

NB Panel:

In terms of notebook panels, demand has significantly weakened in the fourth quarter. Faced with the pressure to maintain shipping momentum, panel manufacturers are experiencing changes in the previously stable panel prices over the past few months. As a result, buyers are beginning to have more negotiating power.

Observing panel prices in December, apart from 11.6″ and 14″/15.6″ TN models maintaining stability due to lower prices and limited supply, prices for 14″/15.6″ IPS models are expected to see a slight decline of $0.1.

• TV Panel

Entering the fourth quarter, including promotions on Double Eleven and Black Friday, the results have been less than satisfactory. As a result, brands continue to revise down their demand for TV panels.

Panel manufacturers are responding to the declining demand by consistently reducing production, and the extent of production cuts continues to expand. This strategy aims to slow down the pace of price decline.

It is currently anticipated that the price decline for TV panels in December will slightly widen. Prices are expected to drop by USD 2 dollars for 32″ and 43″, USD 3 dollars for 50″ and 55″, and USD 4 dollars for 65″ and 75″.

• MNT Panel

As for monitor panels, demand has noticeably weakened since the fourth quarter. However, in the past few months, price declines have been observed only in high-end models.

Nevertheless, with some panel manufacturers leading the way by adopting a softer stance on mainstream panel prices, a downward trend in mainstream panel prices has emerged in December.

Currently, the expected decline for December is as follows: a decrease of USD 0.2 dollars for 23.8″ Open Cell panels, and a decrease of USD 0.1 dollars for 21.5″, 23.8″, and 27″.

• NB Panel

As for notebook panels, demand has similarly experienced a noticeable decline starting from the fourth quarter, with a trend of continuous downward revisions month by month.

Under the pressure of a sudden drop in demand, there is a growing noise demanding a decline in panel prices. In the past one or two months, panel manufacturers have mostly made concessions in higher-end specifications and 16:10 models to maintain the stability of mainstream 16:9 model prices.

However, it is expected that panel manufacturers may find it challenging to resist brand pressure this month, and the panel prices for mainstream FHD IPS models are anticipated to see a slight decrease of USD 0.1 dollar.

Read more

• [Insights] Late-November Price Update: Tug of War in Prices! Drop Anticipated in Large-sized High-end Monitor Panel

The memory industry saw a big downturn due to major players like Samsung, SK Hynix, and Micron drastically reducing production. This resulted in a surge in memory prices and a gradual recovery for the entire memory industry. Panel makers may adopt a similar strategy to boost the overall panel industry as well.

Chinese panel companies currently command a global market share of over 70% in TFT-LCD, with the world’s top 3 LCD panel makers from China: BOE, TCL CSOT, and HKC. As China holds the largest share of panel production capacity, a reduction in production by major players could have a more substantial impact on the panel industry compared to the effects on the memory industry caused by Samsung, Micron, and others.

According to TrendForce’s report in November, BOE began adjusting its production levels in the Q3 and will continue to do so in Q4, with an estimated decrease of 7 percentage points in utilization rates. CSOT, on the other hand, maintained high utilization rates in Q3, supported by major customer stockpiling and the ramp-up of the T9 new production line. However, due to reduced procurement of TV panels by both in-house group brands and international frontline brands, CSOT’s utilization rate is expected to decrease by about 17 percentage points to 76% in Q4.

HKC, which still has two production lines not running at full capacity, anticipates a 14 percentage point decrease in its utilization rates for Q4. This is primarily due to the need to reduce production of one of its main products, the 32-inch TV panel, to alleviate inventory pressures and avoid significant price drops.

In response to this, both Innolux and AUO express their intention to dynamically adjust production capacity utilization in line with market conditions. This strategic flexibility is aimed at fostering a more robust and balanced industry order.

Overall, most panel makers are adopting a more conservative approach to production for 1Q24. Furthermore, several panel makers have indicated a two-week Lunar New Year shutdown for 2024. As a result, TrendForce anticipates that overall Gen5+ LCD panel utilization rates may be revised down to 70% or lower in 1Q24 to maintain the market supply-demand balance.

(Image: BOE)

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