Panel makers have been engaged in inventory adjustment for the past 4-5 months, and now hold less than one month of inventory, according to sources at Taiwan-based LCD driver IC firms.
Nonetheless, panel firms remain conservative about demand in the fourth quarter of 2013, particularly demand for large-size panel applications such as TVs, PCs and notebooks, the sources indicated.
Panel makers are pinning their hopes on small- and medium-size applications, said the sources, which anticipate an influx of short lead-time orders will likely arrive later in the fourth quarter.
Smartphone and tablet sales in China and emerging markets, as well as sales of certain high-end smartphone devices, are expected to pick up prior to the year-end shopping season and the Lunar New Year holiday, the sources noted.
Panel makers and downstream device manufacturers started to clear out excess inventories in the third quarter of 2013, due to weaker-than-expected sales of TVs, PCs and high-end mobile devices, the sources said. Due to the slowdown in orders, Taiwan-based LCD driver IC suppliers experienced a particularly weak third quarter.