Innolux shipped 1.35-1.5 million Ultra HD TV panels in the second quarter of 2014 and is expected to ship 1.65 million units in the third quarter, according to sources with Taiwan-based supply chain makers.

The increase will come as vendors prepare for peak purchasing periods including the October 1 holiday period in China when vendors typically offer various promotions.

Innolux was repsonsible for roughly 70% of all Ultra HD TV panels shipped in 2013 but that percentage dropped to around 40% in the second quarter of 2014 as Korea-based panel makers bumped up production of units ranging from entry-level to high-end.

Despite the overall portion decline, Innolux is expected to see on-year growth in Ultra HD TV panel shipments during 2014. The 1.65 million units to be shipped in the third quarter are expected to make up roughly 20-35% of the company's overall LCD TV panels shipped during the period.

Overall Ultra HD TV panel shipments are expected to increase 10% sequentially in the third quarter, with many market observers estimating that shipments of the technology could reach as high as 20 million in 2014.

Meanwhile, Ultra HD TV panel pricing is continuing dropping. The panels are currently about 1.2 times higher in pricing than Full HD panels and that number may drop to 1.1 by the end of 2014.

The sources also noted that Innolux's proportion of 40-inch and above size Ultra HD TV panel shipments is increasing and market observers expect to see an overall increase in 50-inch and above size units shipped during the year.