Large-size panel pricing is continuing to increase due to makers shifting production to small- to medium-size units. This is creating a shortage in supply for various panel sizes, which is expected to remain throughout most of 2014, according to market observers.
LCD monitor panels are one example which are in shortage as makers shift production at 5G and 6G lines to more smartphone and in some cases LCD TV panel production. Additionally, notebook panels are in shortage as makers have also shifted production to other applications. This comes as notebook shipments saw a 10% increase in May 2014 and are expected to see another 10% increase in June as demand picks up in Europe and Japan, the observers said.
Despite the shifts in production, another trend in the market has to do with the average size of panels being shipped. Smartphone screens are increasingly larger as are TV and monitor applications so surface area demand in the panel segment is increasing, which is bringing about tighter supply as well.
The observers added that production expansion recently has been mostly for AMOLED and LTPS technologies.
