AUO Chairman Peng Shuanglang said yesterday (16) that the current panel market conditions are very good, and the Taiwan earthquake and power outages of the Japanese glass substrate factory occurred one after another last week. As the supply of key components is tight, the panel industry is now showing "one hand lacks IC, one hand "Glass shortage" has exacerbated the supply chain shortage problem. For example, Chromebooks, which are the main education market, currently have only 50% of the panel order fulfillment rate. It is expected that the tight supply of panels may continue into the first half of next year (2021).
In an interview, Peng Shuanglang pointed out that due to the prevailing housing economy, although there is no hope at the beginning of the year, most members will have a bumper year this year. The trends of home work and remote teaching driven by the epidemic remain unchanged. Because the global epidemic has not slowed down, some European countries and the United States The company has announced that the time to work from home will be extended to the middle of next year, so that the housing economy will continue to grow. It is expected that the prosperity of the ICT industry, including panels, will continue until the first half of next year.
He also pointed out that the power outage of Japanese glass substrate manufacturer NEG (NEG) caused damage to its glass melting furnace last week. The recovery time may take three or four months. The plant accounts for about 10% of global glass production capacity. AUO and Innolux The proportion of NEG glass used is not high, but LGD Display (LGD) is greatly affected. Now the panel industry is in a situation of "lack of IC in one hand and lack of glass in the other", making the overall panel supply more tight than originally expected. In the long run, since mainland China's LCD panel makers have no plans for new production capacity, it is estimated that structural improvements in the next two to three years have gradually fermented, and the supply and demand of the panel industry will remain healthy.Japan's glass substrate factory accident research estimates that December panel supply will be reduced by 2.9%Nippon Electric Glass, a supplier of upstream glass substrates for display panels, recently damaged the glass furnace of its factory in Takatsuki City, Japan due to power outages. Qunzhi Consulting estimates that the incident will reduce the global supply of large-size LCD panels by 2.9% in December.Qunzhi Consulting pointed out that after the power outage of Nippon Electric Glass, the monthly production capacity loss of the 8.5 generation in December this year was equivalent to 120,000 pieces; the impact on the production capacity supply in the first quarter of 2021 was 2.5%, which is equivalent to a loss of 95,000 production capacity of the 8.5 generation.According to Qunzhi Consulting, the main customer groups of Electric Glass in the high-generation line of large-size LCD panels are LGD, BOE, AUO, CLP Panda, and Huike. Among them, LG Display has a strong focus on Electric Glass. The dependence is the highest, accounting for 69%; Huike is the second, accounting for 38%.On December 11, a temporary power outage occurred at NEG's glass substrate plant in Takatsuki City, Japan. The power outage caused damage to about 5 feeding troughs into which glass raw materials were poured and caused a shutdown.According to Qunzhi Consulting's investigation, there are 3 glass melting furnaces in the production base of Electric Glass Takatsuki City, and the supply troughs of the 3 furnaces are facing downtime due to the damage of the feed trough. The repair will take at least one month. It is expected that the repair time will vary depending on the degree of damage. The difference is that two of the feeding troughs will be restored and resumed production in January 2021, and the remaining three will be restored from February to March 2021. During the restoration period, the supply of glass will be affected.
Qunzhi Consulting explained that Electric Glass is the world’s third largest supplier of LCD panel glass substrates, with a global market share of 19% including joint venture factories, second only to Corning and AGC. Its three furnaces in Takatsuki account for approximately its total production capacity. 22%, the suspension of production has a significant impact on its supply.
News Source: Economic Daily
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