Omdia: panel makers increase fab utilization plans by three consecutive months and maintain 80% utilization rate in 1Q 2025

Group 1 - The latest analysis from Omdia indicates that display panel makers have consistently raised their fab utilization plans, reaching 79% by the end of December 2024 and projected to increase to 80% in Q1 2025 [1][2] - The increase in fab utilization is primarily driven by heightened demand for special TV panels due to the Chinese government's 'Swap Old for New' subsidy program, which is expected to boost market share for leading Chinese TV makers [2][4] - Anticipated tariff risks under the newly elected US government have also contributed to increased demand for LCD TV panels, prompting some Chinese TV makers to build inventories in Mexico for US shipments [3][4] Group 2 - Major Chinese panel makers, including BOE, China Star, and HKC Display, are leading the upward revision of fab utilization plans, benefiting from the Chinese government's subsidy program [4] - Initially, Chinese panel makers planned to reduce production during the Lunar New Year holidays to maintain pricing power, but increased demand and expected price hikes have led some fabs to cancel holiday plans and maintain high utilization rates [5] - Despite the current surge in demand and strong utilization rates, panel makers remain cautious about mid to long-term demand trends and may revert to production-to-order strategies once the demand surge subsides [6]