Consumer electronics and digital device markets are feared to lose momentum throughout the second half of this year amid a wave of global inflation, MLCC and display panel vendors seeing their stocks pile up at a rapid pace.
The MLCC (Multilayer Ceramic Capacitor), the most important passive component in the electronics industry, is a key indicator for measuring demand dynamics.
Inflationary pressure is most evident in smartphones, laptops and tablets, according to TrendForce, a market intelligence provider, on Thursday, as the general inventory level topped 90 days for MLCCs of all sizes. TrendForce expects consumer MLCC prices to decline another 3-6% on average in the second half after a 3-5% drop in the April-June period compared to the January-March period.
With the decline in demand for televisions, the price of LCD panels is also falling. According to market tracker WitsView, LCD panels of all sizes showed a drop in price during the first 15 days of June. The price drop compared to the second half of May is 9.1% for 32-inch panels, 3.8% for 65-inch and 2.7% for 55-inch.
Most panel prices have fallen to historic lows, and it’s hard to see a floor for large panel prices due to weak demand from terminals, as TV brands revise down their shipment targets for this year and reduce panel purchase volume, TrendForce said. .
Total LCD panel production in the third quarter is expected to decline about 12% from previous estimates. LCD panel production by Chinese brands such as BOE, CSOT and HKC could drop 15.8% from previous targets.
Growth in the organic light-emitting diode (OLED) panel market is also expected to slow compared to an initial estimate at the start of the year. TrendForce lowered its OLED TV shipment forecast for this year from 8.46 million units to 7.79 million units. It also lowered its annual growth outlook from 27% to 17%.
As smartphone demand is expected to be sluggish this year, the forecast for smartphone OLED panel shipments has also been adjusted. Display Supply Chain Consultants (DSCC), a market research firm, cut the flexible OLED forecast for smartphones from 423 million units to 362 million units. Samsung Electronics’ demand for flexible OLED smartphones is expected to rise from 70 million units to 60 million units.
By Jung Yoo-jung and Minu Kim
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