Shipments of TV panels from Taiwan makers are expected to swing lower from December to February following an influx of short lead-time orders from TV vendors in China in November. Capacity utilization rates of Taiwan's flat panel makers will also be kept at low levels over the next three months, according to industry sources.

The short lead-time orders come as China-based TV vendors are building up inventory for the forthcoming Lunar New Year holiday season, said the sources, adding that inventories of TV products at channel operators in China have recently climbed back to normal levels, at 5-6 weeks.

December is normally a slow season for shipments due to year-end inventory checks at clients, while shipments in January 2012 will be also affected due to decreased work days caused by the Lunar New Year holiday, the sources explained.

The capacity utilization rates of Taiwan-based panel makers are expected to stand at 75-80% in November before lowering to 65-70% hereafter, said the sources.