Affected by panel production reduction, this year drove IC consumption first negative growth
According to TrendForce, WitsView's latest observation shows that IC demand driven by flat panel output is falling in tandem, with total consumption expected to grow at an annual rate of -3.2% this year, the first negative growth in recent years.
The room for growth in 2020 is also limited, with an estimated annual growth rate of only 1.3%, according to experts Li zhihao, deputy director of TrendForce research, said that after the 10.5 generation line in mainland China was gradually released, the pressure of panel oversupply continued to rise and reached its peak this year. In addition, the industry turbulence caused by the sino-us trade dispute and weak demand for terminal equipment caused the panel inventory to rise.
When the panel price falls below the cash cost, the panel factory will choose to reduce production to mitigate the loss, which will naturally affect the demand for driving IC. Currently, the total consumption of driving IC is only 7.76 billion in 2019.
Although the addition of new capacity in 2020 is likely to increase the demand for panels, and large panels of various sizes continue to move towards high resolution, Gate on Array technology will be more widely used in new models as the demand for narrow frame products increases, resulting in a significant convergence of Gate IC usage.
Under the elimination of a long time also offset the driving force of IC growth.
The increase in demand for automotive panels and wearable devices will be one of the few drivers expected to drive the growth of IC demand
