Global high inflation has led to weak terminal demand, and panel makers continue to face operational headwinds. As the price of various sizes has fallen below the cash cost price, in order to prevent the price from continuing to break the bottom, it is reported that the panel Shuanghu continues to control production capacity, and it is reported that Innolux (3481-TW) to encourage employees to take more vacations when adjusting production capacity.
In this regard, Innolux pointed out that it has always been committed to providing a friendly workplace environment for colleagues, and also pays attention to the healthy balance of work, family, leisure and other life of colleagues. While adjusting production capacity at any time on weekdays, the supervisor will simultaneously remind colleagues to take vacations, and work once more following appropriate rest and vacation. It is more motivated and efficient, and it is now the summer vacation, encouraging colleagues to rest assured to enjoy parent-child family time.
In response to changes in the overall market, major panel makers in China have successively adjusted their production capacity in the third quarter. Taiwanese manufacturer AUO (2409-TW) and Innolux are also making dynamic adjustments. According to the estimation of TrendForce, a research institute, AUO has started to adjust production in the second quarter, and it is expected that this strategy will continue to be implemented in the third quarter, with the overall utilization rate falling to 50%. The overall utilization rate is also expected to drop by 6-7 percentage points quarter-on-quarter.
The continued weakening of panel prices is a key factor for panel manufacturers to adjust their production capacity. Except that most TV panel prices have reached the cash cost price, monitor and notebook panel prices have also continued to weaken. The price decline has begun to converge, and the strategic benefits of each factory have gradually emerged.
The panel industry is still difficult to get rid of the industrial business cycle framework in the short term, but AUO and Innolux have expanded their deployment in high-value, medical, field economy and other applications in recent years, and have also expanded into panel-level semiconductor packaging technology. Adjusting the production line and making annual repairs can also make up for the plan to shorten the annual repair arrangement when rushing to work at the beginning of the year.
AUO is also expected to hold a legal meeting on Thursday (28th), and is expected to announce the second-quarter financial report, and the management will explain the industry boom in the second half of the year.