Global supply of TFT-LCD panel component such as light guide plates (LGPs) and reflective sheets is expected to remain tight in the second half of the year, and may further affect overall shipments of LCD panels, according to Taiwan-based panel makers.

Reflective sheet supply ran short of demand by about 20-30% in the second quarter of 2010 with ASPs rising by 10% on quarter, mainly due to panel makers and optical film manufacturers placing orders in advance to secure supply for the upcoming peak season amid limited supply, the sources noted, The major suppliers, including Japan-based Toray Industries and Teijin Chemical and South Korea-based SKC have been cautious regarding the overall demand in 2010 and have been unwilling to expand their production capacities, the sources added.

With panel makers and optical film manufacturers placing orders in advance in the second quarter, reflective film demand is expected to drop, but will still run about 10% short of total demand in the third quarter, the sources said.

Supply shortages of PMMA for LGPs are also due to limited capacity. LGP manufacturers such as Coretronic, Forhouse, Wah Hong Industrial and Chi Lin Technology are also expected to increase prices for LGPs, the sources mentioned.

The sources indicated that LGPs and reflective films are not the only panel component that are in shortage. Driver ICs, LEDs and open-cell panels are also in shortage due to various reasons, including stronger-than-expected demand.