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Taiwan LCD TV Plants Slow Down

November 29, 2006 | Author: Ibex Marketing

Just two days ago, I wrote about how the newest LCD plants were making it possible to product large numbers of enormous LCD HDTVs. One of the questions is whether or not there is a market for all those panels. Apparently, some Taiwanese LCD manufacturers think that there may not be, at least in the short term. AU Optronics and Chungwa Picture Tubes have announced plans to cut back production by 10% in December, according to a report in DigiTimes.

This is not a total surprise. December production is intended for next spring’s shipments, which will be after the holiday buying frenzy and it is reasonable to expect demand to drop off some. There are also reports that indicate that retailer inventories may end up being higher than desired, in spite of the holiday sales, which could help reduce the size of product orders for the spring.