| | By John Daly in Germany @ Friday, March 20, 2009 2:49 PM
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| | Things are looking a bit better for makers of LCD TFT displays and panels. Taiwanese panel maker AU Optronics said its utilisation rate has improved to over 50%, exceeding expectations. Demand for PCs was growing in both China and the USA. Consumers had not stopped buying things, despite being more cautious due to the recession, explained AU Optronic's CEO Chen Lai-Juh. The company had previously expected utilisation to stay flat at 50%. Nonetheless, shipments are forecast to be 15% to 20% lower in the current quarter than a year before.
Corning meanwhile told investors yesterday business was running as predicted, as data from panel makers and retail channels indicated. In the last few weeks, the company has been receiving more and more orders for its glass substrates from panel makers. Corning restated the forecast for its display business. Total glass volume is now expected to stay flat or contract by 5% at the most, in contrast to a decrease of 20% to 25% as previously expected. Corning's management sees utilisation rates in Taiwan growing from 20% in December to over 40% in February, whilst Korean panel makers will see their capacities utilised by up to 80% in February. Utilisation rates are also expected to grow further during the current month. Prices for glass substrates will however still sink in the first quarter and continue to sink in the second quarter, yet not as strong.
In January, Sharp CEO Katsuhiko Machida stated LCD prices were set to stabilise after prices hit rock bottom end of March, due to inventories depleting. Demand for LCD tellies would not diminish and fall. Au Optronics and local rival Chi Mei Optoelectronics declared in February their order books were full until April. Workers on unpaid holidays were ordered back to staff production lines thanks to an influx of orders from mainland China. The Chinese government launced a subsidy plan a few weeks ago, which aims to get appliances such as microwave ovens and desktops into rural areas. X
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