Latest Large-Area Display Capacity Outlook Shows 1% Decline in 2021

Austin, TX USA -

Last week DSCC released the capacity section of its Quarterly Display Capex and Equipment Market Share Report which looks into industry capacity by application, frontplane, backplane, country, supplier, substrate, etc.

One of the interesting takeaways was the outlook for G7+ capacity for LCDs and OLEDs. As indicated below, G7+ capacity is expected to fall 1% in 2021 after rising by over 12% in 2019 and 2019 and 5% in 2020. This is a result of LCD fab shutdowns in Korea and delays in new fab ramps due to COVID-19. With LCD TV panel demand expected to rebound in 2021, it should keep supply tight, prices should continue to rise, and margins and stock prices should improve for panel suppliers. Will it lead to new spending in LCDs? We aren’t hearing about that at the moment. Looking beyond 2021, we are optimistically seeing 2% - 6% growth which includes some low probability investments. From 2020-2025 we only see LCD+OLED capacity rising at a 2.5% CAGR which I believe is a historically low figure which could lead to elevated margins for display suppliers for years.

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