Display Panel Production Capacity Utilization to Fall

Global display panel manufacturing capacity utilization is projected to decline from 83% in September to 80% in October, as forecasted by Omdia. This downturn is attributed to reduced demand for end devices, driven by rising memory chip prices that have increased overall product costs.

Weak shipments of laptop display panels in July led to significant oversupply in the IT panel market, intensifying inventory pressures for manufacturers. In response, panel makers are expected to adopt more conservative production strategies.

China's three major panel manufacturers—BOE, TCL Huaxing, and HKC—are anticipated to see a 4 percentage point decrease in their October capacity utilization, exceeding the industry average. These companies are considering production curbs during the National Day holiday, particularly on TV LCD lines.

While Chinese manufacturers' utilization rates are expected to rebound in November, those with a higher proportion of IT display capacity may face further declines. The overall global capacity utilization is forecast to remain at the low 80% level throughout November.