LCD TV panel makers plan to cut utilization rates to stabilize operations

TrendForce’s recent research indicates that demand for LCD TV panels is expected to decrease in the fourth quarter of 2025. Leading panel manufacturers, such as BOE, CSOT, and HKC, intend to pause production at their major TV panel factories during China’s National Day holiday.

TrendForce’s utilization rate model estimates that overall factory utilization in October is projected to fall by six percentage points compared with the levels planned by panel makers in August, declining to 79%.

TrendForce observes that, on the supply side, this holiday strategy not only enables LCD TV panel makers to maintain low inventory levels through October, but also helps reduce operating costs by synchronizing production shifts with the holiday season.

BOE, CSOT, and Sharp are cutting back on operations at their Gen 10.5 fabs for five to seven days over the holiday. TrendForce forecasts that the utilization rate for 10.5-generation TV panel lines in October will drop to approximately 74%.

For Gen 8.6 fabs, HKC is expected to shut down its Chongqing H1, Chuzhou H2, and Changsha H5 lines for five days, while BOE will halt production at its Chengdu B19 fab for the same period, leading to an estimated October utilization of around 77.5% for the 8.6-generation lines.

The planned five-day suspension at CSOT’s T1 and T2 Gen 8.5 lines is expected to reduce utilization by four percentage points from previous forecasts, bringing it down to 81.3%.

October shipments will still benefit from Singles’ Day stocking efforts. However, demand for TV panels is expected to decrease by 4.8% MoM compared to September. As a result, panel makers are reducing production in October. These actions not only control costs but also aim to mitigate supply-demand imbalances in the TV market and maintain stable panel prices during the month.

Source: TrendForce, Taiwan.