PCB Production capacity

Affected by inventory from downstream customers and other factors, in late December panels offer declines in the expansion, but after reviewing the supply chain, in January next year of Chinese Lunar New Year, the offer will have the opportunity to show  in stocking demand. While annual operating panel plant next year, in the market supply and demand imbalance,  is still a state of fear, bad performance will continue.

Analysts pointed out that the fourth quarter of this year, the statistics of large-size panels offer, TV fell almost a fifth, monitors 8% and NB 7%, in the quotation lower, and the impact of annual maintenance utilization rate, large-size panel makers will face a worry of a profit from the surplus to deficit.

Daqing investment Associate adviser Xu Bojie noted that in this year's global market 4K TV grows dazzling , IHS forecasts annual shipments of 39 million sets of the panel, exponential growth; in 2016 by estimate it will continue to grow to 66 million units, the annual growth rate of 69%; wherein 4K RGBW aircraft with substantial growth by six million to 15 million sets. As for the RGBW 4K-based Korean panel factory, its growth performance is better than Taiwan factory. 

As for short TV market, in the fourth quarter inventory digestion downstream is near the end. the large size of complete IC stock has to go, the Lunar New Year will be covering the land-based TV brands under the stock. In January related supply chain has received urgent orders. 4K TV is still the continent brand factory stocking focus. 

Analysts pointed out, 4K TV unit price is high and the number of aircraft average driver IC continued to go up, including Innolux, Novatek, the world and other supply chain performance will benefit.

While Taiwan companies have started to adjust production capacity, in addition to years off, but a few companies have started to carry out the scale of unpaid leave. CPT started to reduce 4.5G capacity, in the short term, which helps HD720 phone panels offer, but as for the mainland, under government policy support and subsidies, continuing expansion is still the biggest negative factors in  the overall panel industry plant , which will also be the biggest test for the next year.