"LCD Panel Price Increase Continues... Expected to Peak in Q3"

[Asia Economy Reporter Jeong Hyunjin] As LCD panel prices continue to rise, it is forecasted that they will peak in the third quarter. With LCD panel prices climbing sharply, TV manufacturers such as Samsung Electronics and LG Electronics are increasingly burdened by rising production costs.

On the 19th, market research firm Display Supply Chain Consultants (DSCC) revised its previous forecast that the LCD price increase would slow down from the second quarter of this year. According to DSCC, LCD panel prices rose 27% in the fourth quarter of last year compared to the previous quarter, and increased by 14.5% in the first quarter of this year. DSCC predicted, "Prices are expected to rise by 17% in the second quarter of this year as well," adding, "They will reach a peak during the third quarter."

(Data=DSCC)

LCD panel prices have been rising sharply due to increased demand for IT products and TVs after COVID-19, as well as semiconductor supply shortages affecting key components of LCD panels such as display driver ICs (DDI). Contrary to their initial plans to withdraw from the business due to the rising LCD prices, domestic display companies are extending LCD production.

During the first quarter, LCD panel prices increased across all sizes. In particular, 32 to 65-inch LCD panels saw a price increase of 12-18%, while 75-inch panels rose by 8%. DSCC forecasts that the price increase will accelerate in the second quarter, with 75-inch panels rising by 12% and 32-inch panels by up to 24%.

As LCD panel prices continue to rise, TV manufacturers are facing growing concerns. So far, they have maintained nearly stable retail prices, but the significant increase in the cost of the core component?the panel?has greatly increased production costs. Since transitioning to high-margin premium TVs is difficult to achieve in the short term, they have no choice but to consider raising TV prices.

Samsung Electronics recently stated in a conference call, "It is true that the rise in LCD prices and semiconductor supply issues have some impact on the profitability of the TV business," adding, "We expect this trend to continue for the time being." LG Electronics also said, "LCD panel prices have been rising sharply due to the expansion of the home economy trend caused by COVID-19 and increased display demand, which is intensifying cost pressures on TVs."

However, DSCC also emphasized that despite the rise in panel prices, TV manufacturers have achieved significant profits due to strong TV demand.

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