LG Display to cut back on LCD output

Korea - LG Display is the latest to cut LCD production, as the industry combats falling prices in the demand-supply imbalance.

LG Display, the world's second-largest liquid crystal display (LCD) maker behind Samsung Electronics, has decided to decrease LCD output by approximately 10% in the short term, until the end of August.

The company's decision follows earlier ones made by Taiwan's AU Optronics to cut utilisation rates by 5-10% in July and Chi Mei Optroelectronics to cut utilisation rates by 10-15% to fight against falling profits, excess inventory levels and falling panel prices, according to The Korea Times.

DisplaySearch told The Korea Times that the average selling price of a standard 32-inch LCD panel has fallen by 1.6% to $310 since the end of May and 6.6% from $322 in January.

"By implementing this latest measure, we hope the current supply and demand imbalance will be eased," LG Display's spokesperson Park Sang-bae told local media. This imbalance has arisen due to the cooling down of global economies coupled with falling LCD prices.

LG Display officials say July and August are vacation seasons in its key markets of North America and Europe, meaning less demand for products and a supply glut in the global LCD industry.

Park added that "production will return to normal levels from September when the supply and demand imbalance will improve, boosted by back-to-school season orders."