TrendForce's latest investigation reveals that the decline in panel driver IC prices has slowed in the first half of 2025, influenced by a complex interplay of geopolitical factors, raw material costs, and market dynamics.
Slowing Price Decline: In Q1 2025, average driver IC prices fell by approximately 1% to 3% quarter-over-quarter. The decline is expected to continue at a slower pace in Q2, indicating a potential end to the prolonged downtrend observed in recent years.
Impact of China's Subsidies: China's 2024 subsidy program has stimulated demand, helping to stabilize prices and support steady quarterly growth in driver IC shipments.
Stable Foundry Prices: Prices for mature-node foundries have remained relatively stable, contributing to overall price stability in the market.
Rising Gold Prices: The cost of gold, a critical material in driver IC packaging, has surged past $3,300 per ounce, reaching a new record high. This increase in raw material costs poses a potential risk for future price adjustments by suppliers.
Geopolitical Risks: The unpredictable nature of U.S.-China trade policies continues to be a significant concern. While current tariffs have not directly targeted panels or IC components, any future changes could impact production and logistics costs, potentially undermining price stability.
TrendForce anticipates that driver IC prices will remain largely flat in the second half of 2025. The industry is expected to experience intensified price negotiations as panel makers and suppliers navigate rising costs and geopolitical uncertainties. Supply chain players are advised to closely monitor gold prices and geopolitical trends, adjusting their inventory and procurement strategies accordingly to balance potential risks and opportunities.
