Summary of Key Points
In the first half of 2026, storage chip prices soared due to a mismatch between supply and demand, which increased the cost of consumer electronics and dampened demand, putting pressure on the entire panel industry. The performance of leading panel companies varied significantly:
- BOE (Beijing Oriental Display Technology Co., Ltd.): By optimizing its display business structure and focusing on emerging sectors such as the Internet of Things (IoT) and Mini LED, BOE achieved a slight increase in revenue (1.83%) and a substantial rise in net profit (61.62%).
- TCL CSOT (TCL Corporation's Display Business Unit): Its TV panel business was stable, but some of its OLED businesses were affected by weak demand for smartphones.
- Shenzhen Tianma and Visionox Technology Co., Ltd.: Both companies saw a decline in revenue and incurred losses due to their reliance on small and medium-sized smartphone panels.
The industry is accelerating its transformation, expanding OLED applications into new areas such as IT and automotive, while also investing in emerging technologies like Mini LED and the IoT.
How the Rising Prices of Storage Chips Affected the Panel Industry
Storage chips act as the "memory" in consumer electronics like smartphones and computers. The supply-demand imbalance (e.g., insufficient production capacity or sudden increased demand) in the first half of the year led to significant price increases. This directly raised the cost of final products. Merchants either had to raise prices and sell at a lower profit margin or bear the increased costs themselves, resulting in reduced demand for consumer electronics.
With weaker demand, panel manufacturers received fewer orders, and panel prices fell, squeezing the profit margins across the entire supply chain. Companies that rely heavily on small and medium-sized smartphone panels, such as Shenzhen Tianma and Visionox, were particularly hit, suffering from both declining smartphone demand and rising storage costs, which led to losses.
Divergent Performance of Leading Companies
- BOE: Its emerging businesses helped it perform well, with a significant increase in net profit. Although its display panel business revenue decreased by 3.2%, its Mini LED and sensing businesses grew by 47% and 88% respectively, and its IoT business also saw growth (due to the expansion of a second phase of a project in Vietnam).
- TCL CSOT: Its core business was stable, but some of its OLED businesses were under pressure due to rising storage costs and weak smartphone demand. However, it is investing in printed OLED technology, with a new 8.6-generation printed OLED production line under construction in Guangzhou.
- Shenzhen Tianma and Visionox: Both companies experienced significant revenue declines and losses, mainly because they rely on smartphone panels. With weak smartphone demand and rising storage costs, they are shifting to OLED applications in wearable devices, automotive, and IT sectors.
Where Are Panel Manufacturers Heading for Transformation?
Companies are moving away from smartphone panels towards more promising areas:
- Internal Adjustment of Display Business: Shifting from smartphones to IT and automotive applications:
- BOE: Producing LCD panels based on demand and expanding its flexible OLED production for IT (computers, tablets), and automotive applications. Its 8.6-generation OLED line began mass production in June.
- TCL CSOT: Building a printed OLED production line for IT and automotive applications.
- Shenzhen Tianma and Visionox: Applying flexible OLED technology in wearable devices (watches), automotive screens, and IT products.
- Emerging Businesses: Investing in Mini LED, IoT, and sensing technologies:
- BOE: Expanding its Mini LED business overseas, building a second phase of its IoT project in Vietnam, and collaborating with Corning on new technologies like glass-based and perovskite displays.
- TCL CSOT: Promoting the commercialization of Mini LED and printed OLED.
What Does the Future Hold for the Industry?
Analysts predict continued pressure for the panel industry in the second half of the year, with success depending on companies' performance in emerging areas such as advanced packaging, Micro LED, and OLED for IT applications. Those that invest early and execute well in these areas will have a better chance of staying competitive.
In summary, the industry faces challenges, but companies that successfully transform to new markets may thrive in the long term. This analysis provides a clear understanding of the current situation, issues, and future directions for the panel industry.