The display industry is facing enormous pressure for corrections. Not only do the prices of bulk panels continue to fall, but terminal brand manufacturers have also lowered their momentum for repairs and purchases. The relevant pressures are gradually being reflected on polarizer manufacturers. Looking forward to the third quarter, Ming Substrate (8215-TW), American Materials (4960-TW) and others are relatively conservative. In addition to facing a slowdown in panel makers’ shipments, upstream material makers have also increased their raw materials due to the depreciation of the yen, which also adds to operational uncertainty.
The production capacity of Taiwan’s polarizing plate factories does not account for a high proportion of the world itself, and it is mostly concentrated in Taiwan. In addition, in recent years, it has strengthened the layout of high-value product fermentation, which is relatively more resistant to the industry boom. Observing the operating performance of manufacturers in the second quarter, the average maintained at a relatively high level.
However, as panel makers continue to lower their production capacity in the third quarter in response to changes in overall market conditions, it is expected that the supply of upstream polarizers, IC designs, glass substrates, etc. will also be slowed down simultaneously, and panel prices have not stopped falling. In order to reduce losses and maintain profits, and also hope that upstream manufacturers can make profits, polarizer manufacturers revealed that they are continuing to negotiate with customers in the near future.
Looking forward to the third quarter, manufacturers are relatively conservative in their operations. In addition to feeling the slowdown of panel factories and price pressures, the depreciation of the yen has also forced upstream materials to reflect material costs. Observing the recent trend of the yen, the exchange rate against the US dollar once dropped to 136.7 , hitting a new low in 24 years, which means that polarizer manufacturers are facing pressure from downstream customers and upstream raw material manufacturers at the same time.
Chengmeicai said that the overall terminal demand has declined significantly. At this stage, it is expected that the operation in July will decline further than that in June, and the impact will be more than 10% or even close to 20% than the original estimate. The short-term visibility is not high, and the legal person also estimates , the overall capacity utilization rate of Ming substrate will decline slightly in the third quarter. Although there are contributions from medical, automotive isolation films, etc., due to the still low proportion, it is still difficult to compensate for the negative factors such as rising raw materials for polarizers.