Flat panel production is slashed - 6G slowing down as demand fails to materialise

By Dave Murray @ Thursday, July 17, 2008 11:01 AM

Section - PCs/Hardware

Manufacturers are starting to pull the plug on 6G flat screen production as demand has dropped, according to DigiTimes.

The 6G lines were supposed to fill in the gaps in the computer monitor market, but with the IT segment suffering from inventory problems, makers have again found themselves with excess capacity at 6G lines.

Innolux Display has scaled down the first phase of its 6G plant project, while Chi Mei Optoelectronics is reported to be slowing down the capacity ramp at its 6G lines. Chunghwa Picture Tubes is installing new 6G capacity gear into its factories, but this is because demand is weak and there is nothing else for the plants to do.

AU Optronics is also cutting back on its 6G lines, and wants to reduce the use of its L6B Fab by 10 per cent. Originally, AUO planned to ramp L6B's capacity to 120,000 substrates per month by the end of 2008 from the present 100,000 substrates, and has put those plans on hold.

It is fairly clear that the panel makers thought 2008 would be much better than it was, particularly after such a good 2007. They ploughed money into the 40-inch segment, which they expected to be mainstream. However, in the wake of a global economic downturn, demand for 32-inch LCD TVs has been much better than for 40-inch models. X