According to Taiwan's Economic Daily, the "trade-in" subsidy policy in mainland China has taken effect this quarter. In addition, panel manufacturers have been effective in controlling output, and they have been stocked up for peak promotion seasons such as Double 11. TV brand manufacturers have recently started to follow up on panel orders. The first wave of additional orders is as high as more than 3 million pieces, and subsequent increases are expected, making the current panel market better than expected. The first quarter of next year is also optimistic, and even prices are expected to rise. Innolux and AUO will benefit.

Innolux and AUO are entering the earnings week this week. Innolux will be the first to appear tomorrow (29th), and AUO will take over on Thursday (31st). The two panel giants are currently in a silent period before the earnings conference. Analysts believe that as TV brand manufacturers start to follow up on panel orders, it is a good omen for the earnings conferences of the two giants, and they are expected to bring positive news.

Panel industry insiders pointed out that in order to stimulate the domestic economy, the Chinese government implemented a "trade-in" subsidy policy, which successfully led to a rebound in local TV demand. As a result, Chinese TV manufacturers also increased their LCD panel purchases this quarter.

According to data released by Suning.com, a few days before the National Day holiday, sales of first- and second-level energy-efficient TVs achieved a year-on-year increase of more than 100%. TV manufacturers increased their purchases of 3 million panels in a single quarter, successfully stopping the decline in TV panel prices in the fourth quarter.

Xie Qinyi, senior research director of the display department of Omdia, a professional panel research organization, also confirmed that it was originally expected that TV panel prices would continue to fall in October. Given the current situation of TV manufacturers increasing purchases and panel manufacturers speeding up production, the price trend this quarter will be better than expected, at least flat, and Innolux and AUO, which mainly produce large-size TV panels, are expected to benefit.

Xie Qinyi said that this wave of "trade-in" policy of 15% to 20% price subsidy has indeed stimulated demand. Mainland TV brands have "added orders" for purchases, and the overall TV sales size has also been greatly expanded. From 55 inches, 65 inches, 75 inches, 85 inches and even 100 inches of super-large TVs, strong buying momentum can be seen, and the effect is very obvious.

Xie Qinyi said that overall, the TV panel market this quarter is much better than the third quarter. Innolux and AUO benefited at the same time. It is expected that the subsidy policy will continue in mainland China next year, and the price of TV panels should increase in the first quarter of next year.