Low demand for display panels, etc. Chi Mei/Hua Ying have cut production

Taiwan media reported that industry sources said that Chi Mei and Chunghwa Picture Tubes are expected to reduce the panel's capacity utilization rate by 20% due to the reduced market demand.

Lin Yingchang, president of Huaying, said that they will adjust the capacity utilization according to market demand, but have not disclosed the specific adjustment details.

Affected by the reduced demand, rumors claim that upstream manufacturers are currently taking an unpaid leave. Lin Shengchang expressed that Huaying will not follow this approach. Although the demand of IT vendors (monitors and notebooks) is not high, the demand for small and medium-sized panels is still strong. They are also actively developing new products for their customers and preparing for 2011.

Chi Mei's capacity adjustment is mainly affected by supplying 7.5 and 6 generations of panels for IT manufacturers; while Huaying is mainly influenced by the sixth generation of lines, but the supply of small-size panels remains stable, so the 4.5-generation line will remain in full capacity. Production status.

AUO also announced that it will reduce its panel capacity utilization rate to 90-93% in the third quarter.