Major Chinese panel manufacturers may reduce production by 20%

China’s four major panel manufacturers – BOE, TCL CSOT, Huike Electronics, and Xianyang Rainbow Electronic Accessories – have recently notified suppliers of their plans to further reduce production by 20% to stabilize the declining price of TV panels. The manufacturers hope that they can keep prices above their profitability level by significantly reducing the supply, Taiwanese media outlet Economic Daily News reported. China is the world’s largest producer of TFT-LCD (thin-film-transistor liquid crystal display) panels, with a global market share of over 70%, according to industry analysis cited by Icsmart. The recent significant reduction in production by major companies such as Samsung, SK Hynix, and Micron in the memory chip market has led to an increase in chip prices, driving the industry into a positive cycle. The four major panel manufacturers in China are hoping that their production cuts can help replicate the chip industry recovery in the panels sector. [Icsmart, in Chinese]