
LONDON, Jan. 16, 2025 — Omdia reports that display panel manufacturers steadily increased their factory utilization plans throughout the fourth quarter of 2024. By November, the planned quarterly utilization for Q4 reached 77%. December saw a two-percentage-point upward revision to 79%, followed by another four-percentage-point increase for Q1 2025, resulting in an 80% utilization rate. Specifically, January 2025 plans showed a six-percentage-point rise, according to Omdia’s latest data.
“The increased fab utilization plans are primarily driven by higher demand for specialized TV panels, boosted by the Chinese government’s ‘Swap Old for New’ subsidy program, which is still unfolding. Leading Chinese TV manufacturers are securing extra TV panels to gain market share during this demand surge,” a statement said.
“Potential tariff issues under the new US administration have temporarily increased LCD TV panel demand, affecting panel makers’ fab utilization plans. Some Chinese TV manufacturers are building up TV inventories in Mexico to ease US shipments. The rush orders have also raised concerns about component shortages, such as driver ICs and polarizers, particularly for IT LCD production. These supply worries have further fueled demand, leading to more upward revisions in fab utilization plans,” the statement added.
The upward revision in panel makers’ fab utilization plans has been largely driven by major Chinese manufacturers like BOE, China Star, and HKC Display. These companies are more significantly affected by the Chinese government’s subsidy program due to their larger share of LCD TV panel production and supply to Chinese TV makers.
Initially, Chinese panel makers planned a two-week Lunar New Year break at the end of January 2025, reducing LCD TV panel production to influence panel pricing. However, increased panel demand and anticipated price increases for LCD TV panels in the first half of 2025 have led some factories to cancel the holiday shutdown to maintain high utilization rates.
“Despite the current surge in demand and strong utilization rates, panel makers remain cautious about mid- to long-term demand trends and may switch to a production-to-order approach once this demand peak subsides,” the statement concluded.
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SOURCE Omdia