Zhu-Xiang Yang, general manager of Innolux, a major panel manufacturer in Taiwan, wrote a year-end reflection poem about the challenges and outlook for the panel industry:
Thick snow blankets the withered lotus
yet the lotus root stirs with the promise of spring
flowers bloom and lotus seeds grow
As the year ends prosperity ushers in the spring
The poem suggests that the panel industry is entering a temporary adjustment period after facing market downturns and challenges. In recent years, factors such as global economic uncertainty, supply chain disruptions, and fluctuations in panel prices have exerted considerable pressure on the industry.
In addition, China's dominance in panel production has led to the withdrawal of Japanese and Korean manufacturers, leaving Taiwanese companies as one of the few key players in the industry. Taiwanese panel manufacturers like AUO and Innolux hold the second-largest position in global LCD panel production, but there remains a significant gap between them and China.
However, as smart cockpits, high-end displays, Micro LED, and quantum dot technologies continue to develop, panel manufacturers are positioning themselves to produce more valuable products. These products include medical displays, automotive displays, and applications for smart retail.
China is reintroducing its "trade-in" policy in the first half of 2025, More significantly, with the impending inauguration of US President-elect Donald Trump, downstream television brands are anticipating potential high tariffs and are accelerating procurement to avoid future costs. This has created a short-term stockpiling effect, which, in turn, has led to a rebound in prices for large-sized TV panels, such as 65-inch, 75-inch, and 85-inch models.