Display Manufacturers Cut Spending Due To Sharp Decline In Demand
Several large display manufacturers have stopped refreshing the machines used to manufacture screens in their plants due to the extremely sharp drop in demand for their products. Apparently no new systems have been set up since mid-2022.
According to the Taiwan industry service DigiTimes, citing information from the company Favite, which specializes in test systems for new displays, several large display manufacturers have stopped upgrading or replacing their production facilities. The plants have been at a standstill for several months as far as the commissioning of new production systems is concerned.
According to Favite, many manufacturers are currently trying to convert their existing systems in order to open up other sources of income in times of sharply reduced demand for screens for use in smartphones, tablets, notebooks, PC monitors and televisions. Some of the production lines will be converted for the construction of e-paper panels, while others will be converted for the production of screens for the automotive industry.
AU Optronics, Innolux, LG Display and various display manufacturers from China all reported losses during the third quarter of 2022. For example, AUO had recently significantly reduced the planned expenditure for the purchase of new systems and at the same time pushed back the construction of a new, ultra-modern LCD factory in Taiwan.
Favite itself manufactures automatic optical inspection systems for the production of all types of displays, with which newly produced panels are checked for defects. The company assumes that display manufacturers will generally expect significantly lower delivery figures in the fourth quarter of 2022 and that the prospects for 2023 will not be positive either.
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