By Martin Mou

Innolux Corp. said Tuesday it expects demand for TV panels to increase in the third quarter due to stimulus from major countries and the need to stock up for seasonal promotions.

For shipments of large panels, the Taiwanese company forecasts a high single-digit percentage growth in the third quarter compared with the second quarter.

However, Innolux estimates shipments of small and medium panels to fall by a single-digit percentage in the third quarter from the previous one.

The company posted a net loss of 4.8 billion New Taiwan dollars (US$163.5 million) in the second quarter, while its revenue came in at NT$66.9 billion, it said.

Write to Martin Mou at martin.mou@wsj.com