Taiwan panel makers are reportedly lowering their shipments for Ultra HD TV panels in the second half of 2013 due to lower-than-expected sales as well as to increased competition from Korea- and China-based makers, according to industry sources.
Taiwan panel makers were mostly responsible for supplying TV vendors with Ultra HD TV panels in the first half of the year but now face increased competition from China Star Optoelectronics Technology (CSOT) as well as Samsung Display and LG Display, as both China and Korea TV vendors look to increase sales in the second half.
Samsung is reportedly ramping up production of 55-, 65- 75- and 85-inch panels while LG will be focused mostly on 55- and 65-inch units in the second half, the sources said, adding that LG is also likely to produce 49- and 79-inch models in the first half of 2014.
The Korea-based makers are hoping to profit from Ultra HD TV sales during the year-end shopping season in North America and Europe, while China-based vendors expect to see sales of the technology increase during the October 1 holiday period, the sources noted.
Despite the expected growth in China during the October 1 period, Ultra HD TV sales are expected to be weaker than predicted in China due to LCD TV subsidies issued by the China government coming to an end in the first half of the year, which is another major factor that has caused the Taiwan makers to lower their shipment estimates for the second half, the sources revealed.
Approximately 500,000-600,000 Ultra HD TV panels were shipped in the first half of 2013, said market observers, adding that shipments are expected to reach over 700,000 units in the second half.
