TFT LCD panel suppliers are reshaping their large-size panel business plans in 2013, as the market demand for key applications changes. According to DisplaySearch, panel makers expect to ship 166 million panels in fourth-quarter 2013, 13 million fewer than previously targeted. Inventory adjustments by downstream customers in second-half 2013 have caused panel makers to pull back for the remainder of 2013 and to be more conservative in their planning for 2014.

　　For 2013, TFT LCD panel suppliers are forecast to ship 679 million large-size (9-inch and larger) panels, a 10% on-year decline and the first on-year decline for large-size TFT LCD panel shipments. Due to panel price erosion and volume reduction, large-size TFT LCD revenues are forecast to decline 12% on year to US$73.4 billion.

　　"High levels of panel shipments in second-half 2012 and first-half 2013 have caused a buildup of inventory in the supply chain," said David Hsieh, VP of the greater China market for DisplaySearch. "Rather than concentrating purely on increasing sales volumes as they have done in the past, TFT LCD panel makers are now more focused on leveraging new technologies and improving product specifications."

　　Panel technology improvements include Ultra HD, super-slim bezel, high transmittance open cell, high resolution, IPS/FFS, ultra-slim, light weight, and high color gamut; along with more integrations like up-scaling circuitry, touch screens, and mechanical parts.

　　"2013 was a year of convergence between inventory adjustments and panel value upgrades," Hsieh said. "These adjustments and upgrades will result in increases in higher-end ultra-slim notebook-PC panels, higher resolution and larger-size LCD monitors and TV panels."

　　According to panel makers' business plans, notebook and mini-note panel shipments will reach 182.7 million in 2013, which is a decline of 22% on year from 233 million in 2012. Oversupply of panels in 2012 and cannibalization by tablets have pushed panel makers to constrain their capacity allocation for notebooks and to begin upgrading to Full HD and other high resolution formats, and to adopt flat light guide plates in the backlight for ultra-slim panels. Slim and ultra-slim notebook PC panels comprised 55% of shipments in third-quarter 2013 and are expected to reach 66% of shipments in third-quarter 2014, said DisplaySearch.

　　While tablets as a whole have been taking share from notebook PCs, shipments of 9-inch and larger tablet panels are also expected to decline 13% in 2013, as smaller tablets increase market share.

　　Shipments of LCD monitor panels fell 12% on year to 159 million in 2013, the lowest level since 2006, due to the maturity of the desktop market and the slow replacement cycle. Panel makers are planning to shift to larger sizes and add more value-added products with various sizes and higher resolutions. For example, many panel makers are now focusing on 2560 by 1440 and Ultra HD monitors.

　　LCD TV panel shipments are expected to reach 235 million units in 2013, up 2% on year. In order to control inventories, panel makers are expected to reduce capacity utilization in fourth-quarter 2013 and first-quarter 2014, especially for TVs. However, the trend toward larger sizes and higher resolutions is growing fast. Panel shipments for 50-inch and larger LCD TVs are expected to reach 28 million in 2013, a significant increase from 19 million in 2012. Manufacturers are also planning to ship more than three million Ultra HD TV panels in 2013, the firm noted.