LCD manufacturers to cut production by 20 to 30 percent

LCD panel manufacturers will cut their production capacity in the fourth quarter. Production will decline by 20 to 30 percent in the coming months and this decline is expected to continue into the first quarter of 2009.

The main argument for the reduction in production is the slowing growth of the world economy and the resulting lower demand for LCD screens. It is expected that twenty to thirty percent fewer LCD panels will be made in a few months than is currently the case, writes digital times.

It is not the intention for the time being that there will be layoffs, according to the reactions of producers such as AU Optronics, Chi Mei Optoelectronics and Chunghwa Picture Tubes. However, these companies have indicated that the current employees should be deployed in a more creative way, for example by filling vacancies internally and sending employees on holiday.

Different analysts to expect that the price of LCD and plasma TVs in the United States will fall sharply in the coming weeks. The low would coincide with the busiest time of the year for stores, which traditionally takes place around Thanksgiving. According to the analysts, retailers and producers with aggressive pricing still hope to sell their products, which is not very easy for them at the moment due to the economic problems. Whether this strategy will work remains to be seen, since not only flat TVs are falling in price, but laptops, game consoles and Blu-ray devices are also becoming cheaper.