Omdia: Display Makers Cut Capacity Utilization During Uncertainty Over Display Application Tariffs
TechTarget, Inc. (TTGT)
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Source: Business Wire
LONDON--(BUSINESS WIRE)--According to the latest report from Omdia’s Large Area Display Production Strategy Tracker, display panel makers maintained a fab utilization above 80% in 1Q25 but are expected to reduce utilization in 2Q25. As the pull-in demand for 1Q25 winds down at the start of 2Q25, set makers are adopting a more conservative approach to panel purchases.This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250402228909/en/Fab utilization rates (%)Uncertainty surrounding the new U.S. tariffs on display application products including TVs, PCs and smartphones, combined with reduced panel orders from brands and OEMs, is prompting panel makers to scale back capacity utilization. Omdia predicts utilization will drop below 80% in April 2025 and further to 76% in May 2025.Since 4Q24, panel makers have operated fabs at high utilization levels of 81%-83% driven in part by China’s “swap old for new” subsidy program which has
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