Notebook panel supply is expected to see a 20% shortage in the third quarter of 2014 as panel makers have shifted production capacity to other applications.

Panel makers have shifted production to higher profit products such as smartphone, tablet and Ultra HD TV panels as demand remains steady, while demand for notebook and monitor applications has fluctuated.

Notebook shipments are expected to increase slightly around 1-2% in 2014, which means that vendors may push newer products for release in the fourth quarter of the year or otherwise face possible shortages throughout the third quarter.

LCD monitor panels are also in short supply during the third quarter, including that for 19-, 21.5-, 24- and 27-inch units. Many market observers believe that supply may not increase until the fourth quarter.