Taiwan Tablet Panel Makers See Low Order Visibility as Competition Intensifies

Tablet panel makers in Taiwan currently have low order visibility due to less-than-expected sales of tablets as well as to increased competition from other panel makers.

The makers believe the tablet panel segment has brought in a steady business but is increasingly hard to compete in as more panel makers, most of which are from China, are expanding their production capacity and forming more integrated supply chains with local vendors.

China-based BOE is one major panel maker that is taking such actions and is also beating out Taiwan makers in terms of pricing for both tablet and PC panels, causing orders to be shifted away from Taiwna makers.

As global demand for high-end tablets has recently been stagnant and white-box unit orders are increasingly being shifted to China makers, tablet panel makers in Taiwan currently face low order visibility.

Additionally, major tablet vendors also have had issues clearing their reserves recently and may need until the fourth quarter before putting in new orders.