(Yicai) April 29 -- The Chinese display panel industry will continue to develop steadily this year despite the US new tariff policy, according to the general manager at market research firm Sigmaintell Consulting.  

"This year's tariff fluctuations have caused abnormal volatility in panel demand, testing the adaptability and resilience of manufacturers," Li Yaqin told Yicai. "But since Chinese panels are not directly exported to North America, the impact of tariffs is minimal, and manufacturers can maintain supply flexibility by producing based on actual demand.”

TCL Technology Group's semiconductor display unit TCL China Star Optoelectronics Technology and BOE Technology Group, China's two largest display panel manufacturers, reported strong first-quarter performances today.

TCL China Star's net profit widened 329 percent to CNY2.3 billion (USD320 million) in the three months ended March 31 from a year earlier, according to the Huizhou-based parent company. Revenue rose 18 percent to CNY27.5 billion (USD3.8 billion).

BOE's net profit and revenue surged 64 percent and 11 percent to CNY1.6 billion and CNY50.6 billion, respectively, in the period, the Beijing-based firm noted.

Demand for display panels was strong in the first quarter, which led to a tight supply-demand situation and subsequent recovery in prices, Li said. Moreover, demand for information technology and mobile display panels was also robust, driven by China's subsidy policy and expectations for rising tariffs, he added.

However, the overall demand for display panels is expected to decline in the second quarter due to disruptions caused by tariff policies and early inventory preparations, Li noted.

Regarding the US new tariff policy, BOE recently said that its direct exports to the US are relatively small, so the direct impact of tariffs is limited. The company also revealed that it will accelerate the exploration of growth potential in opportunity markets.

BOE has already subsidiaries in nearly 20 countries and regions, including the US, Germany, Japan, South Korea, Singapore, India, Brazil, and the UAE, but will continue to diversify its overseas channel layout.

Similarly, TCL said in its 2024 annual report that its semiconductor display business will gradually establish a global competitive advantage.

Editor: Futura Costaglione