Omdia: LCD TV Open Cell panel cash costs will rise 6.6% next year or continue to rise 6.6% in 2026
The Zhitong Finance App learned that Omdia published an article stating that rising component prices and supply chain pressure are driving up the manufacturing cost of LCD TV panels. The prices of various components and materials such as driver ICs, timing controller ICs (T-Con), power management ICs (PWM), polarizers, and glass substrates are constantly rising. The cash cost of the 65-inch LCD TV panel Open Cell panel is expected to rise 4% year over year in 2026, and will rise further 6.6% in 2027.
According to Omdia, panel manufacturers are facing a shortage of parts supply, leading to a continuous rise in bill of materials (BOM) costs. In 2026, the prices of key components such as PCBs, T-Con (timing controllers), display driver ICs, polarizers, and resistor ICs all increased. This is mainly affected by multiple factors, including supply competition due to increased demand for the AI ecosystem, limited semiconductor chip packaging and testing capacity, rising oil prices, and fluctuations in the component supply chain. These factors have prompted panel makers to take a more active stance on panel price increases.
Furthermore, the rise in crude oil prices in 2026 is also driving up the cost of many display components made from petroleum by-products or derivatives, especially packaging materials and optical films.
Materials such as polyvinyl alcohol (PVA), cyclic olefin polymer (COP), polymethyl methacrylate (PMMA), polyethylene terephthalate (PET), polycarbonate (PC), and polyimide (PI) are widely used in optical films, manufacturing substrates, packaging and modular production processes. These materials are all derived from crude oil, as shown in Figure 1.
Figure 1: Comparison of crude oil and display raw materials
The optical films used in display panels are highly dependent on petrochemical-based polymers such as polyethylene terephthalate (PET), polymethyl methacrylate (PMMA), cyclic olefin polymers (COP), and polycarbonates (PC). These materials are all derived from naphtha isolated during the petrochemical refining process. The war with Iran has exacerbated the risks faced by the Middle East energy supply chain, driving up crude oil prices, and may put cost pressure on the entire petrochemical industry chain.
The polarizer and backlight module of the display panel are composed of various functional films, most of which use petrochemical-based polymers as raw materials. For example, the main film materials widely used in the display industry, such as PET, PMMA, COP, and PC, are all produced from basic petrochemical raw materials derived from naphtha.
Since the second quarter of 2026, display component manufacturers have begun to raise prices for display materials and components. Most offers are ultimately reflected in price increases, and some are still being negotiated between display manufacturers and component suppliers. Even if some price increases are yet to be finalized, they are expected to drive up bill of materials (BOM) costs for display manufacturers, as shown in Table 1.
Table 1:2026 shows price changes for components based on quotations
As component prices rise, display panel makers face higher cash costs in 2026, and costs are expected to rise further in 2027. As depreciation cycles end one after another, LCD TV Open Cell panel manufacturers have been able to reduce depreciation costs. In particular, between 2025 and 2027, depreciation costs for Gen 10.5 generation LCD TV panel production lines will decrease. However, the continued rise in cash costs is still a challenge facing LCD TV Open Cell panel manufacturers.
Figure 2 shows Omdia's simulation analysis of a 65-inch LCD TV panel based on a cost model.
As can be seen from Figure 2, although depreciation costs for panel makers are declining, cash costs are expected to continue to rise between 2025 and 2027.
Figure 2: Cost simulation of a 10.5-inch LCD TV Open Cell panel manufactured on a Gen 65-generation production line
Summarizing the content in Figure 1 as the table below, we can show how costs have risen.
Table 2: Cost increase of 65-inch LCD TV Open Cell panels produced by the 10.5th generation line
The cash cost of the 65-inch LCD TV panel Open Cell panel is expected to rise 4% year over year in 2026, and will rise further 6.6% in 2027. Since falling depreciation costs offset the impact of rising parts prices to a certain extent, the increase in overall costs is relatively small.
Prices of various components and materials such as driver ICs, timing controller ICs (T-Con), power management ICs (PWM), polarizers, and glass substrates are expected to rise further in the fourth quarter of 2026. These price increases are expected to drive the cash cost of Open Cell panels to continue to rise in 2027.
This puts panel manufacturers under pressure to raise prices, and they need to increase the price of Open Cell panels to reflect rising costs.
In September and the fourth quarter of 2026, three Chinese panel manufacturers — China Star (China Star), HKC Display (HKC Display), and BOE (BOE) — sent official letters to customers explaining their plans to increase prices for some panel products. In the letter, these manufacturers said that the continued rise in parts prices is having an impact on their financial situation, so they need to channel the pressure of rising supply chain costs to customers. The panel makers did not specify which display products would be subject to price adjustments, but rather indicated that their sales teams would contact customers to communicate and negotiate pricing issues.
Omdia anticipates that as the upward pressure on costs gradually reaches a critical point, LCD TV Open Cell panel manufacturers are expected to successfully achieve a slight price increase in December 2026. At the same time, panel manufacturers have also been adjusting capacity utilization to avoid oversupply in the market. One of the key factors is the rise in cash costs for LCD TV Open Cell panels in 2026. Figure 3 shows changes in LCD TV Open Cell panel cash costs from the first quarter to the fourth quarter of 2026.
Figure 3: LCD TV Open Cell Panel Cash Cost in 2026
