Lcd display distributor.LCD panel manufacturers continue to LCD panel business. In a conference call on July 28, South Korean LCD panel maker LG Display said it would continue its LCD panel business.

LG display had planned to stop producing LCD panels in South Korea by the end of last year, but because of growing demand for LCD panels, the company decided to extend production of LCD panels for another year until the end of this year.

LG display is one of the world’s largest manufacturers and suppliers of thin-film transistor liquid crystal display (TFT-LCD) panels, organic light-emitting diodes (OLED) and flexible displays, and dominates the global market for large OLED TV screens. The company makes screens for a range of companies, including some models of Apple’s iPhone.

In fact, the demand side does not effectively respond to the price reduction on the supply side, and the weak demand side is the main reason. In fact, even for OLED, the market demand situation is not so good. According to DSCC’s latest OLED shipping report, OLED panel shipments will decline by 4 per cent year-on-year in the first quarter of this year, while panel revenue will be relatively flat. Even if the demand for OLED panels in the car, monitor, notebook PC, smartwatch and tablet market is soaring, the demand for smartphones and televisions is still irresistible, especially mobile apps account for about 78 per cent of OLED market revenue. And Apple MacBook removes the adverse effects of individual events such as touch bar design.

DSCC concluded that the main reasons for demand-side weakness include: (1) inflation caused by various reasons, including COVID-19 and the monetary policy adjustment of the United States; (2) the direct impact of the conflict between Russia and Ukraine on the demand side, as well as the sharp rise in energy prices caused by sanctions; (3) China has been hit again by COVID-19, and the blocking strategy has affected the supply chain; (4) the consumer market is becoming saturated with IT and TV applications. (5) the decrease in discretionary spending is due to higher oil prices, transportation costs, and the cost of living; (6) the impact of more government policies, such as higher interest rates in the United States; and (7) the shift of consumer spending from hardware to services.

Finally, the macroeconomic impact can be seen from the downward adjustment of GDP targets in various countries. At the same time, many factors directly cause display equipment suppliers to face the problem of cost increase, such as the increase in transportation costs caused by energy problems; the cost of materials such as PI (polyimide), CPI (transparent polyimide) and PET (polyester) are also affected by oil prices; and the outage of neon gas in Ukraine has an impact on production in the short term.