Innolux: Large size panel price are estimated to rise by up to 16% in Q2

Panel giant Innolux earned NT $10 billion for the second quarter in a row. Looking ahead, Innolux said the supply chain is still tight and panel capacity will remain short of demand in the second quarter. It expects shipments of large-size panels to remain flat in the previous quarter, while average prices are expected to increase 14-16 percent quarter on quarter, but shipments of medium-size panels will decline 1-3 percent quarter on quarter.

Innolux pointed out that the supply of the upstream supply chain remains tight in the second quarter. In terms of demand, with the rise of the new zero-contact lifestyle in the post-epidemic era, driven by the demand for educational products and the improvement of electronic product specifications, it is expected that the panel capacity will remain in short supply and the price rise is expected to continue.

Looking to the future, Innolux said that it will continue to launch high-value and differentiated products in the field of panel and non-panel applications, emphasize the core concept of “transformation and value leap”, develop intelligent manufacturing and digital transformation, strengthen supply chain management ability, and optimize the utilization of production capacity.

Innolux’s revenue in April was also encouraged by the continuous rise of panel prices. The revenue stood at NT $30 billion for two consecutive months and reached NT $30.346 billion for a single month, with a monthly decrease of 2.1% and a year-on-year increase of 46.9%. In the first four months, the cumulative revenue reached NT $114.185 billion, up 60.7% year on year, while the shipment was affected by the tight supply of components, down from the previous month.

Looking ahead, the overall panel market conditions continue to be hot, AUO expects that supply and demand in the second quarter is still tight, the average price of the overall panel is expected to continue to increase by 10-13%, although short-term components including drive IC, glass substrate, PCB copper foil substrate, packaging materials and other tight, but shipments can still increase by 2-4% quarter on quarter.


Post time: May-18-2021