Thanks to demand from China, one of the world's largest TV markets, TV panel prices have continued to rise for three consecutive months. The impact of the additional 10% tariff on Chinese goods implemented by the Trump administration on the TV market is minimal, while overall demand for large TVs, particularly those larger than 65 inches, is driving the market.
According to market research firm Omdia on the 24th, prices for liquid crystal display (LCD) TV panels rose across all sizes in February of this year. Among these, the prices of large panels larger than 65 inches, which are particularly in demand, increased the most. The average price of a 65-inch LCD TV panel rose by 2.3%, from $172 in December of last year to $177 in February of this year. Initially, the industry expected that the additional 10% tariff on imports from China implemented by the Trump administration on the 4th (local time) would increase market volatility; however, as domestic demand in China remained strong, panel prices continued to rise.
Pan Bo-wi, vice president of TrendForce Research, noted, "The tariff issue has not caused significant shock so far, and rather, TV demand continues to grow due to the replacement policy for old appliances in China," and he added, "Most TV manufacturers are maintaining their purchasing power, and panel companies are also meeting demand by sustaining high production levels." The Chinese government has been providing subsidies of 15-20% for energy-efficient appliances since the second half of last year to stimulate the economy, leading to a rebound in TV panel prices starting in October of the same year.
TV panel prices are expected to continue to rise, centered around large sizes, this year. Market research firm TrendForce analyzed that as panel production concentrates on large sizes due to increasing demand for large TVs, the prices of small to medium-sized TV panels, which have relatively limited production resources, may also rise accordingly. It predicted that prices for LCD TV panels measuring 75 inches or more could record an increase of more than $3 monthly starting this month.
Panel companies are expected to prioritize profit improvement and flexibly adjust production this year. The Chinese panel manufacturer BOE aims to pursue both profitability enhancement and market share expansion this year. According to market research firm Qunjie Consulting, BOE's expected shipment of TV panels this year is 60 million units, with a goal of maintaining a panel market share of about 25%, similar to last year.
Another Chinese panel company, TCL, has set profit growth as its top priority this year. TCL, which acquired LG Display's Guangzhou LCD factory, has increased its shipment target to 56.5 million units, up 17% from last year. The Chinese panel company HKC also aims to ship about 36 million units, including 3 million ultra-large panels, through business restructuring. Taiwan's panel manufacturer AUO predicted that its expected panel shipments this year would reach 17 million units, as its major customers, Samsung Electronics and Hisense, expressed intentions to expand cooperation.
LCD panels for monitors and laptops have stagnated for several months due to intensified competition among manufacturers. The situation of supply exceeding demand has persisted since last year, and this month, LCD panels for monitors and laptops recorded stability across all sizes. As panel manufacturers try to raise monitor panel prices following the upward trend in TV panel prices, customer companies do not easily open their wallets, suggesting that monitor and laptop LCD panel prices are likely to remain low for the time being.