In the third quarter of the panel industry's peak season, the prices of other three panel applications have seen no small drop. According to WitsView, a research division of TrendForce, monitor and notebook computer panels have already fallen below the cash cost based on current panel prices, and are gradually approaching the bottom line of material costs. Although the TV panel is relatively good, under the continuous action of price cuts to stimulate demand, panel quotes are quickly moving closer to the cash cost. On the whole, the shrinking of large-size panels and the resumption of cost protection are the most obvious portrayal of the panel industry in the near future.

Qiu Yubin, WitsView research associate, said that the panel factory profitability is a leading indicator of reference value when observing the component price trend. The good and bad profits usually fully reflect the decline in component prices in the second quarter. When the profit shrinks and operational pressures emerge, panel makers will actively review the cost structure. In order to reduce costs, the panel makers are the most effective and fastest means of improving costs.

For the main glass substrate in the previous segment, because the panel plant's third quarter operating rate was revised down, the demand for glass substrates was not small. Although the average quarterly drop of glass substrates in the first three quarters of this year was only 1 to 2%, due to the recent decline in demand and the high inventory levels, there may be a 4 to 5% decline in quotes in the fourth quarter.

The backlight module, which accounts for the highest proportion of the cost of panel materials, is due to the demand for LED backlights this year. This has led to price increases for key materials including light guides, reflectors, and LED chips. This has led to a limited price drop for backlight modules. However, recently, the market has reported that sales of high-priced LED models are not as expected, and brand manufacturers have turned to CCFL models with relatively low panel prices in order to achieve their planned sales goals. The market sentiment has turned to CCFLs and LEDs have increased. Shrinking situation. This change also makes the backlight module factory pressure on prices greatly increased. It is estimated that there will be a 4 to 5% decline in backlight module backlighting for all types of CCFLs this season, and LED TV backlight modules may be more than 6% more likely to stimulate more demand.

In addition to the above components, because of the poor market conditions, WitsView believes that the main materials include polarizers, driver ICs, and even liquid crystal panels. This quarter, under the premise of stimulating demand and digesting inventories, it is still difficult to escape the problem of increasing prices. . In this regard, Qiu Yubin is expected in the fourth quarter of the main panel plant in the material cost reduction, there is an opportunity from the third quarter, an average of 1 to 2%, increased to 3 to 4% level.