Since mid-2024, China's trade-in subsidy program has revived the TV market, with plans for expansion through 2025. Meanwhile, US President Donald Trump's volatile tariff policies have kept industry players cautious, maintaining steady TV panel procurement.
Frequent earthquakes in Taiwan during the Lunar New Year led to temporary factory shutdowns. Meanwhile, surging demand for large-size LCD TV panels has caused a shortage of polyethylene terephthalate (PET), a key material for polarizer films.
These four factors have strengthened TV brand procurement, while second-tier market players rush to secure inventory before further price increases. Panel manufacturers remain firm on price adjustments.
TV market rebounds
The global LCD TV panel market has tightened, with supply and demand nearing equilibrium. In addition to steady procurement from major brands, second-tier markets are showing signs of recovery, keeping first-quarter demand stable.
The increase in North American tariffs and China's extended trade-in subsidy program have driven higher demand for TV panels among brands. Meanwhile, the second-tier market is rebounding as rising LCD TV panel prices prompt industry players to stockpile inventory before further increases.
Trump's tariff uncertainty keeps procurement on high alert
Trump's 10% tariff on Chinese imports has triggered China's retaliatory tariffs of 10–15% on select US goods, increasing the risk of a renewed trade war. Despite the possibility of further negotiations, TV manufacturers are tightening procurement strategies to mitigate potential supply chain disruptions.
Production continues, utilization exceeds 80%
On the supply side, TV panel production in the first quarter is steadily recovering, driven by strong demand. Major manufacturers in Taiwan and China sustained operations through the Lunar New Year, with utilization rates rising. Industry estimates project fab utilization to reach 80–85% this quarter.
A series of earthquakes in Taiwan during the Lunar New Year disrupted production at Innolux's southern Taiwan facilities. Meanwhile, soaring LCD TV panel demand has led to a 10–15% shortfall in polarizer film capacity, adding further supply constraints.
PET shortage triggers rush to Japan
As TV panel sizes increase, triacetate cellulose (TAC), a traditional material for polarizer films, has shown moisture absorption and deformation issues during shipping, causing display defects. To address this, many manufacturers have transitioned to PET.
Japan's Toyobo remains the sole supplier of PET for TV-use polarizers, with a lead time of 2–3 months. As demand for large-size TV panels surges, supply constraints have intensified, leading panel makers and polarizer suppliers to rush to Japan to secure materials.
LCD TV panel price changes, Dec. 2024-Jan. 2025 (US$)
Resolution & shipment type | Size (inch) | Avg. price (Dec. 2024) | Avg. price (Jan. 2025) | Price change |
1366×768 OC | 32 | 35 | 36 | +1 |
3840×2160 OC | 50 | 99 | 100 | +1 |
55 | 125 | 126 | +1 | |
65 | 176 | 178 | +2 | |
75 | 237 | 239 | +2 |
Source: Sigmaintell Consulting, compiled by DIGITIMES, February 2025
With LCD TV panel prices rising since January, supply constraints and other market factors continue to drive up costs. Industry forecasts project further price increases in February, with small-size panels (55 inches and below) rising by US$1 and large-size panels (65 inches and above) increasing by US$2–4.
Article translated by Levi Li
