Notebook panels may run short of demand by as many as 20 million units in 2014, according to industry sources.

　　The shortage is expected to come as panel makers have increasingly shifted production capacity away from notebook panels to smartphone and tablet panels as a means to help increase profits.

　　This trend in the market started in 2013 and grew particularly strong in the second half of 2013, the sources said, adding it will likely cause notebook panels to run short by 10-15% in the first quarter of 2014 and continue being in shortage throughout the year with demand exceeding supply by as many as 20 million units.

　　Some of the panel makers include Korea-based makers, which shifted production capacity on 5G and 6G fabs, the sources noted.

　　Panel makers do have plans to allocate more production capacity for notebook panel production as of the second quarter of 2014, when notebook vendors are expected to release or start preparing to release new products.

　　However, panel makers still believe that most business will come from smartphone and tablet panel shipments and will remain focused on such products throughout the year.

　　Meanwhile, the sources said they expect notebook panel pricing to continue increasing through the first quarter of 2014.