Chinese panel makers BOE, TCL CSOT, and HKC gain pricing power

Major Chinese display manufacturers BOE, TCL CSOT, and HKC are gaining significant pricing power in the LCD panel market. These three companies now control an estimated 70% to 85% of the market for large-sized (65, 75, and 85-inch) TV panels. Consequently, major global brands including Samsung, LG, and Sony are facing increased procurement costs.

To support pricing and manage inventory, these manufacturers have implemented production cuts and scheduled shutdowns during China’s Golden Week. Industry research suggests that while demand for TV panels is expected to decline by 4% in the fourth quarter of 2026, rising material costs driven by AI demand could increase total TV panel costs by 4% to 7% quarter-on-quarter.

In a strategic move to diversify, BOE Chairman Chen Yanshun announced that the company is preparing to invest in mass production lines for semiconductor glass substrates. This technology is viewed as a potential replacement for silicon in advanced packaging as AI demand grows. BOE continues to maintain a strong market position, holding the top spot in LCD products for eight consecutive years.