While global supply of notebook panels has been tight or short because demand has been larger than originally expected, South Korea-based makers have adjusted capacity from making other panels to produce notebook panels and this is likely to result in intense competition for orders for such panels, according to Taiwan-based supply chain makers.

The adjustment is merely a return to the former capacity allotment used by the panel makers. In the second half of 2013, Samsung Display and LG Display did not hold an optimistic outlook for notebook panel demand and gradually adjusted capacity to produce panels for other applications. However, demand for notebooks has considerably exceeded original expectations, especially in Asia Pacific and Europe markets. Consequently, there has been tight or even short supply for notebook panels, including 13.3-, 14.0-, 15.6- and 17.3-inch panels, and prices have risen by US$0.1-2.0/panel in July, the sources indicated.

Unlike South Korea-based makers, Taiwan-based Innolux originally expected notebook panel demand to increase and has then been increasing production, the sources said. Innolux shipped fewer than 10 million notebook panels in the fourth quarter of 2013, about 10 million units in the first quarter of 2014 and more than 13 million units in the second quarter, the sources noted.