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May 29, 2017

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Panel production unable to meet China demand: group

TAIPEI, Taiwan -- China Video Industry Association (CVIA) Vice President Bai Wei-min (白為民) said that mainland China won't cut down its panel purchases from Taiwan, however, Taiwan should worry about its limited panel supply.

Bai was invited yesterday to speak at Touch Taiwan 2014 Int'l Touch Panel and Optical Film Exhibition, and said that China will follow its plan to purchase 27 million pieces of panels this year, which is worth a total of US$4.5 billion. She is concerned about AU Optronics Corporation (AUO, 友達光電) and InnoLux Corporation's (群創光電) tight panel supply being unable to meet China's demand.

Bai said that Taiwanese companies don't need to fear that China will reduce its panel orders. Although 10 panel production lines have started in China, mass production still can't satisfy the needs of Chinese TV manufacturers and brand vendors, Bai added.

Bai said that China has invested billions of U.S. dollars in panels, QCD matter and glass substrates production facilities. Taiwan should consider adopting China's products and cooperate with China to make headway into the world market together.

AUO President and spokesman Peng Paul S.L. (彭雙浪) said that although the company has invested all of its energy in panel production, it still can't meet the demand. AUO Senior Vice President and General Manager of Video Solutions Business Group Michael Tsai (蔡國新) said that there is a backlog of panel orders that will keep the company busy until December.

InnoLux President Wang Jyh-Chau (王志超) also said that its TV panels are out of stock, and he estimated that panels demand will stay strong until October.

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