LG Display (LGD) reportedly has decided to push back the date of closing its 7.5G LCD fab to probably the end of 2021 instead of September 2020 as planned, due to a recent upsurge in demand for LCD TV panels, according to industry sources.

LGD announced previously that it would also stop producing LCD TV panels at its 8.5G line and shift its capacity to making IT applications (notebooks and monitors).

Prices of LCD TV panels have rebounded sharply in recent months, rising as much as 30% sequentially in third-quarter 2020 with prospects to go up another 10% in the fourth quarter, said the sources.

The plant closure postponement will little affect supply and demand of TV panels in 2021, as LGD is shifting production focus of the 7.5 fab to 43- and 86-inch sizes instead of 75-inch ones previously, noted the sources.

LGD's LCD TV panel shipments are likely to rreach 23-24 million units in 2020, with the volumes likely to fall slightly in 2021 as a result of adjustments to the poduct lineup at the 7.5G line.

The current tight supply of TV panels is likely to continue into 2021 as Samsung Display is still on track to withdraw from the LCD panel market by year-end 2020 and some panel makers, notably those in China, have slowed down the pace for capacity ramps in the wake of the pandemic, commented the sources.

By DIGITIMES