Japan NEG Power Outage... LCD Prices to Rise Further

TV, modern flat screen LCD, LED.

[Asia Economy Reporter Changhwan Lee] A recent power outage at a major Japanese LCD glass substrate manufacturer has led to forecasts that the upward trend in LCD panel prices will continue for an extended period.

According to local Japanese media on the 19th, a power outage occurred on the 10th at the NEG (Nippon Electric Glass) factory in Takatsuki, Japan.

NEG is an LCD glass substrate company holding about a 20% share of the global market. LCD glass substrates are one of the key components of LCD panels, which are widely produced by our display companies.

Industry sources report that NEG has a total of three glass furnaces in Takatsuki, and production was halted for four hours due to the power outage. The large-scale production stoppage is expected to require considerable time for recovery, with normal product manufacturing estimated to resume around March or April next year.

Accordingly, the industry views the NEG power outage as having a significant impact on the global LCD panel market. In particular, it is expected to exert upward pressure on the rising LCD panel prices seen in the second half of this year.

Researcher Sunwoo Kim of Meritz Securities stated, "Although recent price trends for TV panels have leveled off, panel prices are expected to rise again due to a shortage of glass supply," adding, "Negotiations between TV brands and panel suppliers have intensified, and while we initially projected a 2-3% increase in panel prices for December, we are revising the forecast upward to a 4-5% increase due to the recent power outage."

Researcher Kim further explained, "As a result, the price trend for TV panels is expected to shift from stable to upward, continuing through the second quarter of next year," and noted, "For desktop monitor panels, factories producing desktop panels using NEG’s glass substrates include LG Display’s Paju plant and HKC’s H4 plant."

NH Investment & Securities also anticipated a decrease in LC panel supply and a rise in prices. Researcher Kwangwoo Ko of NH Investment & Securities said, "The normalization of NEG’s Takatsuki plant is expected in the first quarter of next year," adding, "Due to the power outage, the global supply outlook for glass substrates has worsened, making smooth supply of glass substrates in the first quarter of next year difficult, which could lead to reduced LCD panel supply and price increases."

This content was produced with the assistance of AI translation services.