Falling prices and weak demand expectations for large-area thin-film transistor (TFT) LCD panels have caused panel makers to adjust their production strategies, according to a recent report. As panel prices approach cash cost, manufacturers are reducing capacity utilisation. According to the quarterly large-area Production Strategy Report, compiled by DisplaySearch, a market research and consulting company, global TFT LCD glass input peaked in the 2Q of 2011 at a record 14.2M/sq metres per month. However, global glass input will be reduced to 12.2M/sq metres per month in Q3, a 14% drop between quarters and 5% growth from 2010. As the market outlook is still unclear, panel makers are planning to maintain input at 12M/sq metres per month in Q4. Shawn Lee, Senior Analyst for DisplaySearch said: "We have seen very different results this quarter. While panel makers planned to raise utilisation rates to 85-90% in Q3, they are now projecting only 75%."
