Panel makers are starting to show signs of reducing panel production due to weak demand in the market during the fourth quarter of 2015.

Additionally, as new production fabs go online in 2016 coupled with developments showing China will have as many as seven new production lines entering production by 2018, panel makers in Taiwan and Korea are evaluating their production means in order to reduce oversupply in the market.

Makers such as AU Optronics (AUO), Innolux and LG Display already stated in the third quarter they were initiating production cuts to offset declining panel shipments and overall panel surface shipped. Samsung Display is also expected to delay production expansion at its Suzhou facilities in China.

Heading into 2016, most makers believe that oversupply will continue to be an issue and believe that reduced production in addition to increased focus on value-added products will help their performances.

Meanwhile, most industry analysts have commented that China makers are showing few signs they will ease production in 2016, and instead hope to become more integrated with local supply chains.