China panel makers are starting to show signs of shifting production capacity on 8.5G lines from large-size applications to small- to medium-size ones in order improve operating margins and to avoid excess supply of large-size panels produced from the lines, according to Digitimes Research.
CEC Panda LCD Technology has taken such measures on its Nanjing-based facilities where it has allocated 30% of its production to TV panels and 70% to high-end smartphone panels, tablet panels and even high-end notebook panels.
Additionally, Tianma Optoelectronics has improved its operating margin to 5.4% in the second half due to shifting similar capacity to small- to medium-size applications and has also switched focus away from feature phone panel production to smartphone panel production.
Digitimes Research added that it also sees similar moves in production shifts from Infovision Optoelectronics in 2014.
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