Chinese display makers BOE, TCL CSOT, and HKC are raising prices for LCD TV panels. This move signals a shift in the global supply chain, as these manufacturers control the vast majority of large-screen panel production. Buyers and TV brands will face higher component costs starting this month.
Major Chinese manufacturers increase costs for large screens
The price hikes target large TV LCD panels, specifically the 65, 75, and 85-inch sizes. BOE, TCL CSOT, and HKC dominate this segment, holding between 70% and 85% of the global market share. Samsung Display and LG Display have already exited this specific market, while AUO and Innolux are reducing their capacity.
TCL CSOT and HKC announced that their price increases are effective immediately as of September 2024. BOE is taking a slightly different approach, with its price increase scheduled to take effect starting in October 2024. BOE cites rising upstream raw material costs and changes in global supply chain demand as the primary drivers for this adjustment.
The industry is adjusting to a more concentrated market structure. Some Chinese LCD production lines have reduced their operating rates to around 70% to improve profitability. This consolidation means fewer suppliers are competing for large TV panel orders, giving the remaining major manufacturers more pricing power.
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