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Rising Costs and Weakening Demand: October Large-Size Panel Utilization Expected to Drop to 79.6%
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According to a September 21 report from financial news outlet 财联社, citing TrendForce's latest panel industry research, the global large-generation panel market is facing a dual challenge of rising costs and weakening demand. Driven by strong AI demand, upstream material supply for the panel industry is being squeezed, which is forecast to push total TV panel costs up by 4% to 7% quarter-on-quarter in the fourth quarter of 2026. At the same time, as downstream customers face increased cost pressure and peak season stocking ended in the third quarter, TV panel demand (in units) is expected to decline by 4% quarter-on-quarter in Q4. In response, major Chinese panel makers BOE, TCL CSOT, and HKC have decided to implement production cuts during the National Day holiday in early October. TrendForce estimates that the utilization rate for generation 5 and above large-generation fabs will drop by 4.2 percentage points month-on-month to 79.6% in October.
Source report
September 21 — According to the latest panel industry research from TrendForce, surging AI demand is crowding out upstream material capacity in the panel supply chain, which is expected to push total production costs for TV panels up by 4% to 7% quarter-over-quarter in the fourth quarter of 2026.
At the same time, downstream customers are facing increased cost pressures, and peak-season inventory building has already concluded in the third quarter. As a result, TV panel demand (in units) is projected to decline by 4% quarter-over-quarter in Q4 2026.
In response to the dual challenges of rising costs and weakening demand, three major panel manufacturers—BOE, TCL CSOT, and HKC—have each decided to implement production cuts during the National Day holiday period in October to accommodate the decline in client demand.
It is estimated that the utilization rate for fifth-generation and above large-generation production lines will decrease by 4.2 percentage points month-over-month in October, falling to 79.6%.
Source
财联社Eastern
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Chinese panel makers cut October output as AI demand drives up costs, weakens TV orders