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Output of panel components, LCD modules in China falls 30% due to power restrictions

Local governments' restricting power supply in China has led to decreases in utilization of production capacities at LCD panel supply chain makers' factories mostly in southern and eastern China to about 60%, and consequently, output of panel components and LCD modules has dropped by about 30%, according to AVC Revo.

Local governments in Suzhou, Donguang and Huizhou have taken measures to restrict power supplied to factories, impacting panel component factories and LCD modules assembly lines there, AVC Revo said, adding that such factories in China are quite concentrated in these places.

However, panel fabs in China have so far not been affected by the power supply restrictions, but makers are decreasing output to cope with continual drops in panel price, AVC Revo noted.

While China's global share of TV output is declining, the country produced 76.2 million TVs during January-August 2021, taking up 57% of the global total, AVC Revo indicated.

China's power supply restrictions are likely to disrupt panel supply chain makers' production and thus tighten supply of panels, according to James Yang, president of Taiwan-based LCD panel maker Innolux. As a result, panel makers will be forced to phase out production capacities with less efficiency in power consumption and TV vendors will increase panel procurement due to worry about possible short supply, Yang indicated.

By DIGITIMES

Link:https://www.digitimes.com/news/a20211015PD204.html

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