LCD panel makers have received an influx of short lead-time orders for large-size panels recently as downstream makers in China are building up inventories in preparation of possible labor shortages after the Lunar New Year holidays, according to industry sources.

In November, Chimei Innolux (CMI) saw its shipments of large-size panels increase 18.4% on month to 12.14 million units, while shipments of large-size panels by AU Optronics (AUO) edged up 1.3% to 9.15 million units during the same month.

The shipment growth is expected to continue in December, pushing up the capacity utilization rates as well as revenues of panel makers, indicated the sources.

Backlight unit (BLU) makers Coretronic is also expected to see its shipments improve moderately in December, as fellow company Kenmos Technology will see its revenues grow to NT$500 million (US$16.46 million) in December from NT$491 million in November, the sources noted.

However, the sources also warned that the surge in orders for December may not be able to continue in January and February, affected by factors including reduced work days caused by the Chinese New Year holidays.

Source:digitimes