"Industry sources" tell Digitimes Himax (HIMX -4.1%) and other providers of large-size LCD driver ICs have been cutting their inventories due to soft Chinese TV demand during the Oct. 1 holiday period. The site also reports small-size LCD TV panel (32"-42") prices have fallen by $1-$3/panel since October, and that prices of larger panels have fallen by at least $5.
However, demand for driver ICs used with Ultra HD (4K) TV panels is said to be stronger; IC vendors are expected increase their Ultra HD-related chip wafer starts by up to 50% Q/Q in Q4.
Chinese TV sales have been pressured in 2H13 thanks to the end of a subsidy program. Himax's large-size driver IC sales totaled $64.3M in Q2, -19% Y/Y and amounting to 31% of revenue. By contrast, sales of small/medium-sized panels (54% of revenue) rose 32% Y/Y thanks to strong smartphone-related demand.