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The global LCD production is projected to grow by a narrow margin in the fourth quarter (Q4) in spite of the worst market condition ever. Last month’s average operating ratio of LCD panel makers world-wide was at 75 percent, up seven percent point from September’s 68 percent, according to the DisplaySearch report, the market researcher. The average operating ratios in November and December are expected at 74 percent and 72 percent, respectively, slightly increasing from Q3.
South Korean manufacturers were held responsible for the cause of such growth.
Korean manufacturers raised the operating ratios to the mid-80 percent range in order to meet the demands of TV manufacturers in time of the busiest season while Japanese LCD makers are reducing the production.
By generation, the operating ratios of fifth and 5.5 generation rose 11 percent point from September’s 68 percent to October’s 79 percent, and they are expected to maintain at a similar level in November and December at 78 percent and 77 percent, respectively.
The seventh and 7.5 generation operating ratios grew by a large margin from September’s 76 percent to 86 percent in October, and the ratios will be kept at the mid-80 percent level.
The operating ratios of eighth and 8.5 generation had an eight percent point growth from 64 percent in September to 72 percent in October, and they are projected to maintain October’s ratio by posting 71 percent and 72 percent. Meanwhile, the sixth generation operating ratio topped out at 61 percent for the past two months, and is expected to fall slightly around 60% range.
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