The market expects panel quotations to stop falling and pick up in Q1 next year, supply chain noise fades

Core reminder: From the second half of the year, the panel started a downward trend. The continuous deep decline in August and September made the supply chain noise gradually. However, recent market expectations have been different from previous expectations. It is believed that the decline in quotations in November and December will obviously converge or even stabilize , The price is expected to stop falling and rebound in the first quarter of next year.
From the second half of the year, the panel started a downward trend. The continuous deep decline in August and September made the supply chain noise gradually. However, recently, the market has heard different expectations. It is believed that the price decline in November and December will obviously converge or even stabilize. Prices are expected to stop falling and rebound in the first quarter.

According to a report from Juheng.com, the industry previously believed that under the premise that panel quotations fell sharply, panel makers would bargain prices from upstream suppliers, including driver ICs, in order to maintain profitability. However, as the decline subsided, panel makers would give upstream With greater price space, superimposed foundry prices tend to stabilize, and driver ICs are expected to continue to pass on costs.

Many manufacturers, including Novatek and Tianyu, are optimistic about the market outlook. They believe that after a short-term correction, the decline in TV panels will converge before the end of the year. It is expected to rebound in the first quarter of next year, which will drive the shipment of driver ICs. On the other hand, the inventory established in the near future will further satisfy the demand.

In addition to driver ICs, the report also pointed out that because TV panel driver ICs are mostly in COF packaging, after panel prices stabilize and rebound next year, COF-related materials will also be promoted. At the same time, more and more automotive curved screens that use COF packaging are also increasing. Maturity is also good for COF-related manufacturers.