Korean media is reporting that Chinese LCD panel manufacturers are experiencing higher operating costs, resulting in more expensive panels. These manufacturers have reportedly notified LG, Samsung, and Sony ahead of the holiday season that they will be affected by rising costs.
“Concerns that China’s dominance of the LCD supply chain would translate into greater control over panel prices are becoming a reality,” reports The Elec.
“Some Chinese LCD production lines are operating at utilization rates as low as about 70%, according to industry estimates,” The Elec conrtinues. Rather than increasing utilization and flooding the market with panels, Chinese manufacturers are reducing production to contain oversupply and defend prices.
Korea and Japan’s major display manufacturers have already abandoned the LCD manufacturing market, outsourcing panels to Chinese companies including BOE and TCL. These companies have reportedly confirmed price increases taking place in September or October, likely affecting the Black Friday and global holiday shopping season.
