notebook panel


2021-11-02

Quarterly Notebook Panel Shipment Reaches Historical High of 72.27 Million Pcs in 3Q21 Thanks to High Demand for Commercial Notebooks, Says TrendForce

Owing to persistently strong demand for notebook panels and increased supply of such upstream components as ICs and TCONs, quarterly notebook panel shipment reached yet another historical high in 3Q21, with 72.27 million pcs shipped, representing an increase of 7.1% QoQ, according to TrendForce’s latest investigations.

TrendForce indicates that the proliferation of the stay-at-home economy resulted in record-setting performances from the notebook panel market, in which quarterly shipment reached historical highs for three quarters consecutively across the 1Q21-3Q21 period. Nevertheless, market demand for panels has shown partial signs of weakening. Demand remains strong for commercial notebooks but has begun plummeting for consumer notebooks and Chromebooks. Alongside this drop in Chromebook demand, 11.6-inch panels, which are the mainstream size of Chromebook displays, have also dropped in terms of shipment volumes, reaching only 10.88 million pcs shipped in 3Q21, a 28.3% QoQ decline. Quarterly shipment of Chromebook panels is expected to undergo a further decrease in 4Q21. In addition, given the aforementioned strong demand for commercial notebooks, panel suppliers have quickly transitioned their focus towards 14-inch and 15.6-inch panels in response, and the combined quarterly shipment of both of these sizes reached 46.45 million pcs in 3Q21, a 20.2% QoQ increase. The bullish performance of these sizes of notebook panels thereby became the key reason behind the historical high in notebook panel shipment in 3Q21.

Due to panel suppliers’ swift response to changes in the market, notebook panel shipment for 2H21 is not expected to be overly impacted by the weakening demand for Chromebooks and consumer notebooks. For now, TrendForce projects notebook panel shipment for 4Q21 to reach 71.15 million pcs, while shipment for the entire 2021 is expected to reach 278.1 million pcs, a 23.2% YoY increase. Looking ahead to 2022 and regarding the supply side of the panel market, most panel suppliers will be aggressive in their shipment plans for notebook panels due to the massive growth in notebook panel shipment across the 2020-2021 period. As such, panel suppliers are planning to ship about 330 million pcs of notebook panels in 2022. However, if a corresponding demand for notebooks fails to emerge next year, the notebook panel market may enter into an oversupply situation, thereby placing downward pressure on panel prices. Regarding the demand side of the panel market, demand for Chromebooks and consumer notebooks will likely continue to slow down next year, but this slowdown will be accompanied by a corresponding growth in commercial notebook demand due to the persistent growth of the overall economy, along with the global digital transformation also taking place. Taking these factors into account, TrendForce expects annual notebook panel shipment for 2022 to reach 279 million pcs, representing a slight growth of 0.3% YoY.

For more information on reports and market data from TrendForce’s Department of Display Research, please click here, or email Ms. Vivie Liu from the Sales Department at vivieliu@trendforce.com

2021-08-17

Prices of Notebook Panels Expected to Plummet in Late 4Q21

The current state of the notebook panel market shows that prices of notebook panels are likely to follow the same trend set by TV panels and monitor panels in 4Q21. In other words, notebook panels may see their prices plummet from the previous uptrend during the quarter.

Notebook brands are confident that a wave of demand for commercial notebooks will take the place of the prior demand for consumer notebooks. Objectively speaking, however, as soon as enterprises return to pre-pandemic business operations, they are unlikely to immediately spend a considerable amount of their budget on refreshing their existing hardware, including notebook computers.

On the other hand, although consumer purchases comprised most WFH demand for notebooks within the past year, these notebooks were purchased with subsidies funded by the buyers’ workplaces. Once consumers return to physical offices for work following the termination of WFH, their purchased notebooks will then be returned to the workplaces as well. Hence, notebook brands which previously anticipated an upcoming wave of replacement demand for business notebooks may be overly optimistic in their expectations. As such, although notebook shipment has remained bullish in 3Q21, notebook sales are likely to gradually slow down going forward, meaning notebook vendors and brands alike may enter into a key period of inventory adjustment in 4Q21. At the same time, notebook manufacturers will also decelerate their procurement activities for panels across their entire range of notebook computers.


The four largest notebook panel suppliers still exert significant influence over the market’s overall supply of notebook panels, although newcomer HKC is not to be underestimated in terms of its potential to do the same, even pertaining to quotes. While HKC did not ship a single notebook panel in 2020, the company has ambitiously targeted an annual shipment of 10 million units this year in light of the expanded production capacity for IPS panels at its Mianyang fab. In 1H21, however, the display industry suffered a severe shortage of driver ICs, whose manufacturers first sought to ensure a steady supply of driver ICs for their more established clients. Being a notebook panel supplier that had had no business foundation, HKC, as was typical of such upstart companies, had its supply of driver ICs accordingly “adjusted” by driver IC suppliers. HKC was hence unable to effectively raise its shipment for 1H21.

As the demand for panels from various end-product segments slows down in 2H21, the shortage situation of driver ICs is also expected to either lessen somewhat or even turn into a supply-demand equilibrium. As such, HKC is likely to procure more driver ICs from its suppliers and subsequently step up its notebook panel shipment to 3.5 million units in 3Q21 and 4 million units in 4Q21. HKC’s increase in panel shipment for 2H21, if proven successful, will place downward pressure on notebook panel prices, thereby weakening said prices going forward.

TrendForce believes that 11.6-inch panels, the market for which has been relatively bearish, will most likely experience a decline in quotes starting in early 4Q21. At this size, even Full HD/IPS products, quotes for which have been relatively high in 3Q21, are likely to see their quotes hold flat in November 2021 and experience a sudden downward pressure on prices at the end of the year. Should the COVID-19 pandemic be brought under control on a global scale, demand for consumer electronics would likely return to its cyclical downturn in 1Q22, and the notebook panel market, despite its relatively robust supply chain, would see a more severe overall price accordingly.

(Cover image source: Unsplash)

2021-07-27

High-End Notebook Panels Projected to Surpass 20% Market Share in 2022 as Spotlight Falls on Oxide/LTPS/OLED Technologies, Says TrendForce

The massive rise in market demand for notebook computers in response to distance learning needs and WFH applications from 2020 to 2021 has generated not only a double-digit growth in notebook panel shipment, but also a price hike of more than 40% for notebook panels, according to TrendForce’s latest investigations. As various suppliers subsequently scramble to manufacture OLED, LTPS, and oxide panels, TrendForce forecasts these high-end notebook panels to reach a 17.8% market share in 2021 and 21.4% in 2022.

Panels based on OLED technology are primarily supplied by SDC, whose OLED notebook panel shipment for 2020 reached 800,000 pcs. SDC is expected to ship more than four million pcs of OLED notebook panels in 2021, with room for further growth in 2022. In addition to SDC, EDO is also expected to begin mass producing OLED notebook panels in 2H21-1H22. As such, TrendForce expects OLED panels to reach a 1.3% penetration rate in the overall notebook panel market this year. Although BOE and CSOT are currently fully engaged in Hybrid OLED development, Hybrid OLED panels will not enter mass production until 2023 due to technological and cost-related bottlenecks that are yet to be resolved.

The top three suppliers of LTPS panels are, in order, AUO, CSOT, and Tianma. Thanks to such advantages as low power consumption and narrow borders, LTPS panels are widely used in high-end notebook computers. In the overall notebook panel market, LTPS panels are expected to reach a penetration rate of 3.7% this year. With regards to LTPS suppliers, AUO will likely expand its L6K fab’s production capacity of LTPS notebook panels in 2022. Innolux, on the other hand, currently allocates the LTPS production capacity in its Luzhu-based panel fab primarily for smartphone displays. Innolux is expected to mass produce LTPS panels for notebooks some time in 2H21. CSOT and Tianma will likewise gradually increase the share of LTPS notebook panels in their overall panel production in spite of their lack of capacity expansion plans at the moment.

Finally, oxide panels are primarily supplied by LGD, Sharp, and BOE. Much like LTPS panels, oxide panels have the advantage of low power consumption and narrow borders. However, oxide panels are relatively more cost-competitive compared to LTPS panels, as the former require fewer mask layers during the manufacturing process. Hence, oxide panels currently possess the highest market share among all high-end notebook panel types. TrendForce expects oxide panels to reach a 12.8% penetration rate in the notebook panel market this year. With regards to suppliers, IVO and HKC are expanding the production capacities at the Kunshan-based Gen 5 fab and Mianyang-based Gen 8.6 fab, respectively, for oxide panels this year, while CSOT is also planning the same for its new Gen 8.6 fab in Guangzhou. Once these three suppliers finalize their expansion activities, their oxide panel capacities are expected to exceed 70K sheet/m, and these capacities will be gradually available for mass production across 2022-2024.

2021-06-01

Monitor Panel Shipment for 1Q21 Declines by 8.6% QoQ to 39.9 Million Units Due to IC Shortage and Samsung’s Exit, Says TrendForce

Owing to the stay-at-home economy brought about by the onset of the COVID-19 pandemic, demand for IT products has been sky-high since 2Q20. However, monitor panel shipment for 1Q21 declined by 8.6% QoQ to 39.9 million units due to the shortage of components such as ICs in the upstream supply chain, as well as SDC’s (Samsung Display Co.) decision to shutter its monitor panel manufacturing operations, according to TrendForce’s latest investigations.

Regarding the two aforementioned factors constraining the shipment performances of monitor panel suppliers, TrendForce indicates that SDC will exit the monitor LCD panel manufacturing business after it reaches its shipment target of 1.2 million panels in 1H21. This figure represents a staggering 93.8% decline compared to the 19.3 million units of LCD panels that SDC shipped throughout last year. Aside from SDC’s decision, the other detractor of monitor panel shipment in 1Q21 was the tight supply of semiconductor production capacity, which resulted in a shortage of such components as ICs and TCON (timing controllers) in the upstream panel supply chain. Panel suppliers were hence constrained in their ability to manufacture panels, thereby leading to a shortage of monitor panels. In addition, since TV and notebook (laptop) panels have higher profit margins compared to monitor panels, panel suppliers generally allocate less of their production capacities for manufacturing monitor panels relative to the other products.

Monitor panel shipment for 2021 is still likely to experience a YoY growth as material shortage becomes alleviated going forward

Nonetheless, as demand for TV and notebook computers gradually slows, and certain semiconductor foundries are expected to expand their production capacities in 2H21, TrendForce believes that panel suppliers will likely in turn allocate more production capacities to clients in the monitor segment in 4Q21. More specifically, the current shortage of components in the upstream supply chain, which has been exerting significant downward pressure on monitor panel shipment, will be gradually alleviated in 2H21. On the demand side, the persistent stay-at-home economy will continue to generate demand for IT products. Monitor brands will therefore ramp up procurement activities for components such as panels in order to maintain a healthy inventory level. In light of influences on the supply side and demand side, TrendForce expects monitor panel shipment for 2021 to reach 169 million units, a 4.2% YoY growth.

For more information on reports and market data from TrendForce’s Department of Display Research, please click here, or email Ms. Vivie Liu from the Sales Department at vivieliu@trendforce.com

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