Beginning in the second quarter of 2021, LCD panel prices have kept increasing. Vendors expect that high prices will continue for at least 6 months.

There are a lot of manufacturers of LCD modules but there are only a few LCD panel or LCD glass manufacturers in the world. The reasons are:

Let’s take a look at LCD panel manufacturers.

If you are a big company with the LCD usage of corporations such as Apple or Amazon, there are worries of line-down situations. The most important thing is to secure LCD controllers instead of LCD panels. The reason is that the wafer shortage is more severe than LCD panels.  You can contact the biggest LCD panel manufacturers like BOE or AUO to secure the panel use. Of course, you are still facing price hikes. Even TVs from Samsung, Sharp, Sony; and laptops from Lenovo and HP are increasing in price. The question is how high prices will go.

If you are a big company — but not as big as Apple and Amazon – securing LCD controllers is still the priority and setting up supply and pricing agreements with LCD vendors. It will be better to work with CTP (capacitive touch panel) and module integration manufacturers like Orient Display to get the best overall cost.

If you are a medium or small company, the priority is to avoid a line-down. It is better to sign a Letter of Authorization indicating a guaranteed quantity with module integration manufacturers in order to secure key materials and freeze  prices for around one year or even a year and a half.

Panel manufacturers predict that LCD panel prices will start to soften by the end of 2021 and the current IC supply frenzy will cool down in the third or fourth quarter of 2022.

Bill Cheung is an engineering lead and marketing manager at Orient Display, an LCD and display technology provider with more than two decades of industry experience in delivering cutting edge display solutions.

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