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32-inch LCD TVs are going to be in short supply for several months with manufacturers reporting a 40 percent shortfall.

In response to a potential shortage of LCD panels in 2008, downstream LCD vendors have recently settled supply contracts for all of 2008. The move comes as first-tier vendors are now adding more orders with panel makers to secure sufficient shipments according to DigiTimes in Taiwan.

Some downstream vendors are willing to make order payments of up to one to two months in advance with panel makers in order to secure panels while others are signing long-term shipment contracts with makers for a stable supply.

 

The 2008 Beijing Olympics and the 2008 Union of European Football Associations (UEFA) European Football Championship will be two major drivers rapidly boosting the LCD TV market, said LCD panel makers.

A shortage of LCD panels is expected to hit in the second half of 2008 with some manufacturers reporting that not only will stock be in short supply but that prices will rise.

LCD TV makers now are aggressively seeking sufficient supply for LCD TV panels as supply for 32-inch TV panel is running short by 30-40 percent since panel makers are allocating more capacity to LCD monitor applications, according to today’s Chinese-language Apple Daily. Other TV panels segments also are seeing a 10-20 percent supply shortage, the report noted.

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