Panel supply exceeds supply and is bottlenecked, Peng Shuanglang: There is still room for price increase

Now panel prices have risen astonishingly, raw material shortages have caused a decline in panel shipments, and the continued momentum of the housing economy has resulted in strong demand for TV and IT panels. In the second quarter, spare parts are in short supply, and some AUO's factories are repaired every year, and the market conditions for panels of various sizes are quite tight. Peng Shuanglang said that the current panel prices "have considerable room for increase."
Demand was very strong in the second quarter. AUO has been at full capacity since the middle of last year. So far, it has not been able to fully meet customer needs. The supply of parts and components in the second quarter is even tighter, and AUO’s annual repairs are postponed to the second quarter. Overall, the panel is still very tight.
Regarding the market’s concerns about overbooking, Peng Shuanglang pointed out that the shortage of raw materials has made some capacity ineffective. Moreover, as everyone knows where the bids and demand in various countries are, the final orders will converge, and Peng Shuanglang is full of confidence, "repetitive orders are not a big problem!"
Freight rates are rising, and panel production capacity may be variable
Nowadays, not only panels, chips and raw materials that are out of stock, but also face the pressure of rising ocean prices. Peng Shuanglang said frankly that the overall panel supply and demand are still very tight, and pointed out that raw materials including IC, glass, copper foil substrates and even packaging materials and upstream materials, coupled with rising freight rates, will affect production capacity, and whether it can be supplied smoothly is still uncertain.