On July 28, 2008, LG Display announced that it will be reducing its LCD production by 10% through August. This follows news from AU Optronics (AUO) and Chi Mei Optoelectronics (CMO) that they will be reducing LCD output by 10% as well.
LG Display is one of the largest LCD manufacturers in the world and it undoubtedly feels the strain that is being caused by LCD inventory build in the supply chain caused by less-then-expected demand for LCD related goods such as LCD monitors and large LCD TVs. It is interesting to note that AUO and CMO were quicker in their decision to respond to market dynamics. The throttled down production by LG Display is temporary and normal levels will resume starting September. This is invariably based on the assumption that there will be a strong demand rebound for LCD products in Q4′08. I believe that assumption might be a bit too optimistic.
Source: DigiTimes
[tags]LG Display, LPL, Display Manufacturer, LCD Manufacturer, AUO, CMO, AU Optronics, Chi Mei Optoelectronics[/tags]
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