May in Taiwan

6/10/2025

May in Taiwan

Not surprisingly May was another uneventful month for Taiwanese panel producers as the ever volatile trade situation leaves both producers and consumers with little understanding of what to expect. CE product status quo seems to be to keep inventory levels in the US relatively high, despite weak demand, anticipating a potential change in the current tariff situation. As we get closer to July, when the most recent tariff postponement is set to expire, we expect shipments to increase to get them over the US border by July 9, although some are beginning to doubt whether the ‘reciprocal’ tariffs will ever be implemented, at least for our more significant trading partners.
Panel sales in Taiwan, which are reported monthly, indicated that May m/m sales for the two large panel producers (AU Optronics (2409.TT) and Innolux (3481.TT)) were between -1.4% and +4.5%, relatively minor changes, and with little or no change in May panel pricing, shipments also look to be flat, leading to another month of watching and waiting. Given that inventory levels remain on the high side in the US, we expect brands will maintain current or slightly lower production levels until the 9th of July, before planning the seasonal holiday build. Much will depend on the ongoing tariff situation, but we expect there will be less of a rush to build holiday inventories this year than last, and given the recent reductions in CE product forecasts for the year, we expect brands to remain cautious, regardless of the tariff situation .