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Deep Discounts Fail to Stem LCD Panel Supply Glut

December 29, 2008
by Tiernan Ray
Blogger, Barron's, Tech Trader Daily

Tiernan Ray

Liquid crystal display panel inventory is still higher than demand for the panels, despite deep discounting in stores, write the research folks at Avian Securities this morning. Based on “ad hoc checks,” the report observes, while heavily discounted items are being sold, overall inventory is still above demand. The report notes that there are rumors of mergers being encouraged by the Taiwanese government between LCD panel makers AU Optronics (AUO) and Chi Mei Optoelectronics, but opines that “we find little to be excited about unless such a combination reduced capacity going forward.”

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