Taiwan-based LCD panel makers are likely to continue generating handsome profits in the second quarter of 2021, thanks to continued rallies in panel prices, according to industry sources.

Panel prices are on track to moving upward in the second quarter as robust end-market demand for TV and IT products will push brand vendors to continue replenishing their panel inventories, said the sources.

Quotes for a wide assortment of TV and IT panels are likely to hike by 10-20% sequentially in the second quarter, driving up profits at most panel makers, added the sources.

Thanks to persistent price increases, AU Optronics (AUO) and Innolux are expected to report significant growth in earnings for the first quarter of 2021, after seeing their net profits hit a three-year high of NT$8.4 billion (US$294 million) and NT$10.1 billion, respectively, in the fourth quarter of 2020.

By DIGITIMES