AUO and Innolux prepare for the year-end peak season as market demand rebounds

Panel giants Innolux and AUO are preparing for the year-end peak season, with stocking demand gradually recovering. TV panel prices have stabilized, but future trends will depend on overall sales and customer stocking.

Looking ahead to the second half of the year, with tariffs largely settled, TV manufacturers have begun stockpiling inventory for year-end promotions. Panel manufacturers have also become more proactive in panel production and shipments over the past two months, easing the downward pressure on panel prices seen since the second quarter. Third-party research data indicates a rebound in demand for small-size TVs, and manufacturers are also adjusting their capacity utilization rates. Among the three pillars, display is expected to show a slight improvement compared to the previously predicted moderate decline. The other two pillars, mobility and vertical, are expected to remain largely unchanged.

Stockpiling began in the second half of this year to meet year-end holiday demand, and this trend is likely to continue into the first quarter of 2026. With the Winter Olympics and other global international sporting competitions such as the Copa América in the first quarter of next year, panel demand is expected to further increase. Overall, the supply and demand of panels in the first quarter of next year is expected to develop in a healthy direction.