DeepSeek has rapidly emerged as a transformative force as the impact of affordable AI models continues to accelerate. James Yang, President and COO of Innolux, highlighted that DeepSeek is driving a shift in AI computing power and costs, moving them from the realm of exclusivity into the mainstream. If perfected, AI could shed its high-end status and become deeply embedded in everyday applications. In essence, lower costs could lead to higher volume, sparking widespread demand across various industries.

Innolux president James Yang noted that US tariffs could lead to more factories in Asia, thus lowering costs and improving logistics efficiency. This strategy would enhance response times to market changes and better manage supply and demand for panels. Therefore, Taiwan's panel industry is likely to benefit from this policy.

A South Korean market research firm predicts that while the OLED TV market growth has stagnated, South Korean television manufacturers must leverage OLED technology to maintain their position in the premium segment.

Samsung Display (SDC) and China's BOE are targeting Apple's next-generation OLED device market through investments in 8.6-generation IT OLED production lines. However, South Korean market analysts predict that SDC will likely become the exclusive supplier of OLED panels for Apple's MacBook series launching in 2026, citing BOE's potential challenges in achieving satisfactory initial yield rates.

China recently unveiled a series of subsidy policies targeting consumer electronics and home appliances to stimulate domestic consumption. Beyond the central government's efforts, provinces across the country have introduced additional subsidies of varying sizes. The move aims to bolster consumer spending amid an economic slowdown.

A 'giant screen storm' is currently underway as a result of the market's surge in ultra-large TVs, which will greatly contribute to the reduction in production capacity. If this trend continues, the panel industry expects to achieve supply-demand equilibrium in 2029 without having to curtail production, according to industry sources.

Apple has scrapped its plans to develop a Micro LED smartwatch in 2024, dealing a blow to the technology's immediate prospects. Yet, the scene at CES 2025 suggests Micro LED remains a hotbed of innovation, with companies pressing ahead on new products and breakthroughs. Apple's retreat may signal challenges, but it hasn't dampened industry momentum.

Currently, there are over 30 million active users of DeepSeek's large language model (LLM), making it the most popular LLM in China. This has sparked predictions that AI PCs will become more affordable and widely adopted, leading to growth in LTPS panels, which are more energy-efficient and environmentally friendly than OLED panels.

China-based TV manufacturers, including TCL and Hisense, are aggressively challenging South Korea-based competitors by leveraging their price advantages. In response, Samsung Electronics and LG Electronics are ramping up OLED TV sales to fend off the mounting competition from China.

Japan Display Inc. (JDI) announced a major restructuring plan that includes ending LCD production, transitioning to OLED manufacturing through partnerships, and expanding into advanced semiconductor packaging with Taiwanese firm PanelSemi. The company will cease LCD panel production at its main Mobara plant in Chiba Prefecture by March 2026, consolidating operations at its Ishikawa plant. This strategic pivot aims to help JDI break free from chronic deficits caused by intense competition in the display industry.

Taiwanese panel maker AUO held an earnings call on February 13h, revealing that its consolidated revenue for the fourth quarter of 2024 was NT$68.69 billion (US$2.09 billion), a decrease of 11.6% compared to the third quarter of 2024, but an 8.4% increase compared to the fourth quarter of 2023.

PanelSemi signed a memorandum of understanding (MOU) with Japan Display (JDI) to collaborate extensively in advanced ceramic semiconductor packaging. This development follows PanelSemi's 2024 strategic partnership with NGK Insulators, a ceramic technology manufacturer, in which PanelSemi received funding from the Japanese vendor.

With Panasonic announcing its exit from the television business in 2025, all eyes are on global TV giants Samsung Electronics and LG Electronics to see how they will navigate the Japanese market. However, both South Korean brands currently maintain a minimal market presence in Japan, struggling against the price-competitive strategies of Chinese competitors.

AUO has agreed to sell the Taichung facilities of its subsidiary, AUO Crystal, to Micron Technology. This is the second time the panel maker has sold assets to the memory vendor.

Coretronic Corporation reported consolidated revenue of NT$2.856 billion(US$88.53 million) for January 2025, representing a 22% decline from NT$3.675 billion in December 2024 and a 10% drop compared to NT$3.19 billion in January 2024.

Samsung Electronics and LG Electronics face mounting challenges from former US President Donald Trump's tariff policies. South Korean industry insiders warn that if the US imposes a 25% tariff on products manufactured in Mexico, Samsung and LG—both with production bases in the country—will inevitably suffer impacts. Meanwhile, Chinese TV manufacturers may maintain competitive pricing through government subsidies, potentially creating a market advantage over South Korean firms.

Panel procurement momentum, which began in the fourth quarter of 2024, continues to strengthen in 2025, driven by four major factors. Industry experts believe that the first quarter of 2025 could see a strong off-season, while the second quarter remains uncertain. The market outlook for the second half of 2025 appears challenging, as inventory accumulation in the first half could potentially weaken the traditional peak season.

GiantPlus expects a stronger 2025 as demand trends stabilize, despite a seasonal slowdown in the first quarter. Revenue is set to decline from the previous quarter but should stay in line with past first-quarter levels. The panel maker remains upbeat about the year ahead, though quarterly fluctuations may persist.

Suppliers report that China's retaliatory tariffs on American goods will significantly impact total system costs, with monitor prices potentially increasing by 5%. The US market, being one of the largest consumers of monitors globally, faces particular challenges due to the low-margin nature of these products. The tariffs not only raise costs but also affect brand confidence in end-market sales, potentially leading major brands to adopt more conservative shipment targets for 2025.

Innolux is embarking on a comprehensive transformation plan, with General Manager and COO Chu-Hsiang Yang announcing five strategic initiatives for 2025: enhancing operational efficiency through targeted customer engagement, strengthening its display business, advancing packaging technology, expanding value-added manufacturing, and accelerating digital transformation.

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.

The combination of US tariff policies and rising LCD TV panel prices has driven increased demand for monitor panels, including from second-tier buyers. This heightened procurement activity has stabilized LCD monitor panel prices in January, with moderate increases anticipated for February.

According to the latest Samsung Display financial results for 2024, the panel provider registered sales of KRW29.2 trillion (US$19.99 billion), marking only the second time since 2016 that its revenue dipped below KRW30 trillion, reflecting intensifying competition from Chinese manufacturers and declining demand for panels from both smartphones and IT products.

Following a double-digit increase in glass prices, Corning expects to maintain a 25% net profit margin for its Display Technologies business group in 2025.

China has been reported frequently to illegally acquire technology from South Korea in the field of artificial intelligence (AI) semiconductors and displays in the past few years. Moreover, with the advancement of South Korea's neural processing units (NPU), Chinese semiconductor firms have been actively recruiting engineers from South Korean companies or attempting to steal core technologies.