Sharp reportedly lowered capacity utilization rates at its 10G lines to 50% recently, but the capacity reduction will not have any significant impact to the overall panel industry as the 10G lines are focused on the production of high-end panels as well as panels in sizes over 60-inch, according to industry sources in Taiwan.

The capacity reduction, the second time in a year, is expected to last for more than one month, the sources noted. Sharp's 10G lines have a capacity of 1.3 million 40-inch equivalent panels a month.

In comparison, LCD panel makers in Taiwan and Korea have raised their capacity utilization rates recently, indicated the sources, noting that AU Optronics (AUO) and Chimei Innolux (CMI) are operating at 80% of their capacities for large-size panels, while Korea-based makers are operating at 85-90%.

Due to capacity ramps by Taiwan- and Korea-based makers, prices of large-size panels are unlikely to hike in the first quarter, commented the sources.

Panel prices are also expected to stay flat in the second quarter due to increased output from China-based BOE Technology and China Star Optoelectronics Technology (CSOT), added the sources.