In a bid to lower product inventory, panel maker AU Optronics has cut its glass purchases by 15 per cent  and plans to reduce capacity-utilization rate to about 80 per cent in July.

According to Cens.com AU is not alone it trying to cut back on its inventories. Chimei Innolux which is the largest TFT-LCD panel maker in Taiwan, and Korean counterparts Samsung and LG , also reportedly plan to cut production to protect panel prices.

High inventory levels in TFT-LCD panel distribution channels have caused prices to drop, so many major panel suppliers are trying to cut production. AUO is expected to lower production capacity to 80 per cent in the third quarter, from about 85 per cent.

Chimei Innolux also to reduce production capacity from about 90 per cent to 80  per cent Samsung and LGD have cut production capacity in the second quarter, and are expected to further cut 5 per cent in the third quarter.