Omdia: production line capacity utilization of panel factories is expected to fall to its lowest level in 10 years in the third quarter.

CTOnews.com, August 27, according to the latest Omdia report, the average capacity utilization in the third quarter of 2022 is expected to fall 8% from the second quarter to 69%, the lowest quarterly level in nearly a decade.

CTOnews.com learned that Omdia said that machine manufacturers will continue to reduce their procurement plans, so panel manufacturers have accordingly reduced their production line production plans in July 2022.

Among them, Samsung Electronics, the leader of the TV market, has announced that it will suspend panel procurement, and some multinational IT head brands have also sharply reduced their panel purchase plans for the third quarter of 2022.

Panel manufacturers' profits have fallen sharply due to record low capacity utilisation and rising fixed costs caused by persistently depressed panel prices, the report said. If the current situation can not be improved, it is expected that some panel manufacturers will accelerate the restructuring of their old production lines.