Monitor panel exports hit hard by parts shortages and Samsung exit

Research institute TrendForce's newly released study outlined that due to the COVID-19 pandemic, the demand for technology products was consistent since Q2 last year, however, shortages threaten to upend the status quo.

Shortages in 2021 are primarily exacerbated by Samsung's (SDC) phasing out its LCD production, as well as continual shortages for parts in the upstream IC supply chain, according to TrendForce's report. The shipment of LCD monitor panels (Monitor Panel) in the first quarter was only 39.9 million pieces, a quarterly decrease of 8.6%.

SDC will withdraw from the LCD panel supply chain after completing its 1.2 million shipment target for the first half of this year. In terms of shipment volume, the withdrawal could amount to an annual decline rate as high as 93.8%.

Secondly, the pressured semiconductor production and high demand have led to the shortage of upstream materials such as IC and TCON (timing controller), which in turn suppresses panel production performance, resulting in a situation in which panel supply exceeds demand. In addition, for panel manufacturers, compared to TV and laptop panels, LCD monitor panels have lower profits and more limited production capacity arrangements.

However, TrendForce believes that the current demand for TVs and laptops is showing signs of slowing down, and some semiconductor factories are expected to increase new production capacity in the second half of the year. LCD monitor customers are expected to obtain more production resources from panel makers in the fourth quarter. Upstream materials shortages are expected to gradually ease up in the next half of 2021. stream material supply will gradually ease in the second half of the year.

TrendForce added that there is still demand for specific IT products as the at-home economy in Taiwan is thriving as ever, prompting brands to continue to maintain inventory levels. Such factors have helped buoy the overall LCD monitor panel shipments to 169 million pieces in 2021, marking an annual growth of 4.2%.