Strong demand for SMD among panel buyers for their smartphone and tablet lines contributed to this growth
Shipments of small- and medium-sized display (SMD) panels climbed slightly in June to 188.5 million units, up 1% from 186.6 million in May, according to a new IHS iSuppli Small & Medium Displays PriceTrak report.
This marked the first sequential monthly increase since March, primarily due to continued strong demand among panel buyers for their smartphone and tablet lines.
IHS director for small and medium displays Vinita Jakhanwal said panel buyers also are stocking up to keep inventories at reasonably adequate levels to meet demand for the third quarter and during the run-up to the holiday season.
"Economic troubles in the US and European markets have dampened consumer appetite for many electronic items in which these panels are utilised, while a government crackdown on illegal handsets in China is stifling SMD demand there," Jakhanwal said.
Amid strong demand, pricing for SMD panels for tablets is remaining high, whereas prices are declining for SMDs used in digital still cameras and personal navigation devices as demand decreases.
Among SMD panel manufacturers, fab utilisation rates for the Taiwanese will average 61% in the third quarter, up from 55% at the end of June, the report said.
Utilisation rates are much higher among the Koreans, remaining at full capacity for LG Display and at 85% for Samsung Mobile Display.
