LCD demand is surging, Proculus supply is steady

LCD panel prices have continued to rise since June 2020 and have now risen for 13 months, led by a strong end market. Especially, the price of small and medium size panels has doubled, which has brought huge cost pressure to module design manufacturers such as Proculus. However, as the upstream raw material supply tension eased, and demand is restrained by high terminal retail prices, the tension of LCD supply and demand has gradually eased since July.

As we all know, the epidemic has boosted demand for consumer electronics such as laptops and TVs, especially in North America, where sales reached their highest level in the first quarter of 2011 after the government's economic stimulus package. According to data, global TV shipments reached 49.96 million units in Q1 2021, up 11.5 percent year on year. The strong demand of TV and other large-size LCD terminal market not only drives the price of upstream TV panels to continue to rise, but also squeeges the capacity of small and medium-sized LCD for some industrial applications.

Demand for television is slowing as vaccination spreads in some countries and people turn to recreational activities that were restricted during the quarantine. In addition, the subsidy policies of some countries are undergoing some changes. In the future, more subsidies will be directed to stimulate the economy and increase employment. According to the past experience, this kind of policy adjustment will have a certain impact on consumer electronics demand. Industry insiders estimate that U.S. TV shipments in the second quarter of 2021 could be roughly the same as in 2019, down 24 percent from the same period in 2020. Samsung Electronics Co. plans to cut its TV sales by more than 10 percent in 2021.

From the perspective of panel supply, in the past year, the shortage of IC, glass substrate, polarizer and other upstream materials is a bottleneck, but in the second quarter, the supply of these materials is gradually stabilizing. As upstream material supplies improve, the supply of panels will gradually increase.

At the same time, with the resumption of work in various industries, the demand for professional equipment in medical, beauty, environmental testing, smart home and other industries has also begun to grow, especially the demand for 7-inch Android LCD module. Proculus offers standard products that are widely used in these industries and can meet customers' highly customized needs. Here are the relevant parameters: