Quotes for large-size flat panels continued to drop in the second half of September as compared to the first half of the month. TV panel prices declined by 1-3% and IT panel prices slid 2-3% due to slack demand in the end market, according to DisplaySearch.

With shipments of monitor panels likely to peak in September, prices for most panel sizes are expected to continue to drop in the fourth quarter, said industry sources.

Although some panel makers have reduced their output recently, utilization rates for first-tier panel makers could drop to 50-60% in September, the sources indicated.

In additional news, AU Optronics (AUO) and Chimei Innolux (CMI) are also expected to post losses of over NT$10 billion each in the third quarter due to declining panel prices, and it will also be difficult for the two firms to swing back to profitability in the fourth quarter, the sources added.