Increased Value of LCD Panels Due to Reduced Demand and Supply from Staying Home... "Upward Trend to Continue for the Time Being"

[Asia Economy Reporter Jeong Hyunjin] The price of LCD panels used in TV screen production continues to rise. Although demand increased due to the impact of COVID-19, supply decreased, causing LCD panel prices to nearly double over the past year, and prices are expected to rise by more than 10% in the first quarter of this year alone. The domestic display industry, which had announced its withdrawal from the LCD business last year, has not stopped production as initially planned and continues to operate.

According to market research firm Omdia on the 7th, the average price of a 55-inch UHD TV LCD panel last month was $182 per unit, up $7 from the previous month. The price nearly doubled from $102 in January last year. For 65-inch panels, the price rose from $162 in January last year to $231 last month; 50-inch panels increased from $85 to $156, and 43-inch panels from $69 to $117. HD-grade 32-inch products also more than doubled in price, rising from $32 per unit in January last year to $68 in January this year.

[Image source=EPA Yonhap News]

The rise in LCD panel prices is attributed to increased TV demand and reduced production volumes by display manufacturers. According to another market research firm, IDC, last year, LCD panels for portable computers and monitors increased by 20.5% and 14.5% respectively compared to the previous year, reaching the highest levels since 2013, while shipments of TV LCD panels decreased by 5.0% year-on-year to approximately 2.712 million units.

Generally, January is an off-season for TV panels, but due to these factors, TV manufacturers' demand surged sharply, and the purchase volume of LCD panels by TV manufacturers in the first quarter of this year is analyzed to increase by 5% compared to the previous quarter and by 16% compared to the same period last year. In the second quarter, LCD panel purchases are expected to increase by 20?25% compared to the previous quarter. Omdia forecasts that LCD panel prices will remain high through the first half of this year.

Additionally, the supply shortage of the core component used in LCDs, the system semiconductor 'Display Driver IC (DDI),' is worsening. This component, which is used in dozens per LCD panel, converts digital signals into analog light signals to drive the screen. Omdia expects the average selling price in the first quarter of this year to be about $0.45, a 20% increase compared to the same period last year. Omdia analyzed that "DDI will be the most critical factor for display companies to achieve their target shipments this year."

As LCD panel prices are expected to remain high for the time being, the domestic display industry, which had announced its withdrawal from the LCD business last year, is continuing production. Samsung Display has decided to extend its LCD business until the end of this year, and LG Display is also continuing extended production of TV LCD panels using current facilities without additional resource investment.

This content was produced with the assistance of AI translation services.