Continued losses in the display market have various consequences on LCD makers

Sep 30, 2011 15:02 GMT  ·  By

It appears that the segment of memory chips might soon be joined by that of large-size liquid crystal display panels in the camp of those whom economy does not favor.

Users are probably well aware of all the troubles affecting the market of DRAM memory.

After all, the past couple of weeks, despite the short rebound during the second week of this month (September, 2011), it was repeatedly stated that memory chips are doing badly, economically.

Granted, consumers can only rejoice at how incredibly cheap RAM is nowadays (4 GB DDR3 modules are under $20).

Unfortunately, the fact that DRAMs have even reached such a sorry state shows just how low demand is.

Apparently, large-size LCD panels are going through troubled times as well, as yet another Digitimes report is not to shy to point out.

Basically, there have been too few orders for anything larger than what could be used in a tablet, so LCD panel makers are in a bit of a bind.

Now, companies are adjusting workers' day off and trying to keep a tighter reign on costs, since the market keeps returning losses.

Some outfits have decided to shift to small and medium-sized panels, so their lives aren't as hard as they could have been.

Unfortunately, there are still those who are forced to take even drastic measures like asking workers to take unpaid leave.

Chimei Innolux, AU Optronics and Amtran Technology have all been hit in some measure, though only Amtran is said to have asked for unpaid leave from its workers. It even laid off some in March.

Chimei is not quite at that stage and neither is AUO, though the latter did choose to reduce employee business trips and the number of people sent on them.

Whether or not the situation will improve by any significant amount during the fourth quarter of 2011 will probably depend heavily on how the holiday season goes.