The supply of upstream materials for flat panel production will sufficient in the short term but may become uncertain in one or two months as the Japan government has started implementing power brownout controls, according to Wang Jyh-chau, president of Chimei Innolux.

While CMI has already piled up a 1-2 month raw material inventory, it has begun to strengthen the supply of key components and materials as the whole flat panel supply chain counts on the rehabilitation process at Japan, Wang noted.

However, a short supply of upstream materials may help push the industry to reach a balance between supply and demand and even trigger a wave of price hikes for panels, Wang asserted.

Chimei currently purchases upstream anisotropic conductive films from three companies, including one in Japan and two in Korea and also has stockpiled sufficient silicon wafers, according to the company.