LG Display has increased fears of rapid supply growth of LCD panels by announcing it is considering constructing a new LCD production line to meet demands. Manufacturers of LCD television products have been enjoying a healthy level of demand for LCD flat-screens, bolstered recently by Chinese holidays and sporting events like the Winter Olympics.
However, concerns are taking root in the industry that it may return to a state of oversupply as manufacturers beef up production to capitalize on the demand. Controlling supply is important for players in the industry to maintain profit margins for the technology.
“Although demand is strong, growing capacity will become increasingly burdensome for the industry,” said Jason Kang, an analyst at NH Investment & Securities. “Supply is already growing and the growth will be faster next year.”
LG plans to begin operation of a separate production line in the first half of 2010, while Taiwanese rivals are increasing factory utilization. “We are considering increasing capacity because we have been unable to meet all client demand for some time,” said an LG Display spokesman. “But nothing has been decided yet.”
LG Display CFO James Jeong revealed to investors just last month that the company was meeting under 90 percent of orders received and that the situation was likely to continue for months.
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Sharp concluded their CES 2010 announcements today introducing QuadPixel technology.
QuadPixel, which will be added to new Aquos LCD panels, adds a “Y” pixel to RGB pixels, giving TVs the capability to display over 1 trillion colors. Current LCDs can render one to two billion colors.
The HDTVs will not be cheap however, with the LE 920 Series starting at $3300 for the 52-inch model.
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Today LG Electronics announced a mew LCD TV panel which will be the world’s thinnest, measuring just 2.6mm thick. The announcement was timed as a promotion for the company’s exhibit at CES, where the new panels will be on display.
The reduction in panel thickness was made possible in part through the use of LED backlighting. This also improves image quality compared to older LCD panels
The panels also feature a 120Hz refresh rate and full HD (1080P) resolution.
