LCD TV Panel Market Heads Toward Profitability and Fuels Increased Production; 2024 Shipments Estimated at Approx 242 Million Units

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TrendForce’s latest insights reveal that, despite major sporting events traditionally boosting market demand, the uncertain global economic outlook might create a disparity between actual shipment volumes of LCD TV panels and the targets set by panel makers. In 2024, the shipment of LCD panels is projected to hit around 242 million units, indicating a growth rate of approximately 3.4%. Additionally, the shipment area is expected to see an annual increase of 8.6% due to a growing trend of larger product sizes.

Panel makers have collectively set a target to ship about 251 million units in 2024. The enhanced performance of LCD TV panels—coupled with the fierce competition in the IT panel market—is leading to a greater dependence on TV panels for utilizing production capacity. This trend is a key factor in the willingness to increase production in 2024. Furthermore, the industry is abuzz with rumors of potential new mergers and acquisitions in the panel sector. These developments are being closely watched for their potential impact on the overall panel market.

LCD TV panel inventory levels rebounded to healthy levels during the period of 2H22 to 1Q23 following a phase of regulated production capacity usage. Demand has started to pick up thanks to holiday promotions and anticipatory pricing strategies leading to a rise in TV panel prices starting in March 2023. This upward trend resulted in profitability for some panel sizes starting in June. Despite a dip in prices in 4Q23, attributed to lower-than-anticipated brand sales, the decline was mitigated by panel makers’ rapid adjustment of production levels.

BOE is expanding its product range to include new 40” and 60” models, aiming to boost its shipment volumes with these additions and has set a goal of shipping 61.3 million units in 2024. Meanwhile, CSOT is increasing its T9 facility’s capacity, though its share of TV panel production is still relatively small. Along with its existing 98” panels, CSOT is gearing up to produce 115” panels in 2024, targeting a conservative shipment level of around 48 million units.

On the other hand, HKC is planning a substantial reduction in its 32” panel production, focusing instead on new 40” models and highly competitive 85” panels to optimize its capacity usage. With an eye on reapplying for stock market listing in the first quarter of 2024, HKC has set a shipment target of 38 million units, seeking to ensure stable operations through strategic capacity management and adjustments to product lineups.

CHOT, traditionally focused on medium and small-sized products, joined the ultra-large-size supply segment in November 2023. Its shipment target is set at 15 million units given limitations on capacity.

Innolux, while continuing to cultivate its main product line, is also expanding its 55” customer base and has set a shipment target of 37.3 million units. AUO—supported by key customers—is reinstating cooperation with South Korea’s second-largest TV brand in 2024 and has set its shipment target at 16.4 million units in anticipation of growth.

Sharp’s 43” factory in Guangzhou is benefiting from order transfers, and international clients are showing increased demand. Japan’s Gen10 Sakai factory started adding 32”single-cut products in late 2023 and plans to introduce 32” and 65”mixed-cut products in 2024 to improve competitiveness, setting an ambitious shipment target of about 20.3 million units.