Short-term TFT display costs could increase by as much as 50% with lead-times growing by five to six weeks due to the shutdown of major glass suppliers.
Our Taiwan-based TFT glass supplier notified us of the TFT glass shortage that will last from two to four months. This scarcity is due to glass suppliers shutting down operations for repairs of damage done by the February 6, 2016 earthquake. The magnitude of the quake was 6.4, which allowed factories to continue operations during the peak season, but making it necessary for a complete shut down for repairs before the Chinese New year shutdown.
Once repairs are completed, lead-times and cost are expected to return to normal within a few weeks.
One major concern is the possibility of an additional delay due to the return of glass production near the start of Chinese New Year, when many customers place large orders to increase their safety-stock inventories. This could lead to a bottle neck of orders right before the holiday shutdown.
Chinese New Year starts on Saturday, January 28, 2017.
At this time, FocusLCDs.com has placed a safety stock order to bring in and hold TFT inventory to prepare for the shutdown.
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