TechNews | Published: April 28, 2025, 15:10 | Categories: Semiconductors, International Trade, Panels

In the first half of 2025, China's subsidy policies and the issue of reciprocal tariffs have had a considerable impact on brand panel strategies, indirectly influencing the price trends of panel driver ICs. According to the latest research by TrendForce, the average price of panel driver ICs dropped by about 1% to 3% in Q1. While a slight decline is still expected in Q2, the extent of the drop is limited, indicating that the long-standing downward trend in prices is starting to ease.

From the demand side, the reasons for the slowing price decline include: (1) brands and panel makers adjusting their inventory strategies, bringing stock levels back to healthier levels; and (2) the subsidy policies implemented in China last year, which stimulated demand recovery and drove quarterly growth in driver IC shipments. On the supply side, the stable pricing of mature foundry processes has prevented major cost fluctuations, helping to stabilize quotations.

TrendForce notes that uncertainties remain in the market. First, raw material prices—especially gold—have surged, recently reaching a record high of USD 3,300 per ounce. Since panel driver ICs require gold bumps for packaging, the rising gold price will increase material costs for manufacturers. Although selling prices have not yet been adjusted, if the gold price continues to climb, manufacturers may eventually reflect this pressure in their quotations.

Geopolitics presents another potential risk, with U.S.-China trade policy uncertainties being the most significant factor. Although the current reciprocal tariffs imposed by the U.S. do not directly target panels or IC components, if these products are included, it could affect the production and logistics costs across the supply chain, thereby disrupting price stability.

Given the current situation, panel driver IC prices are expected to remain largely flat in the second half of the year. Panel makers are concerned about rising cost pressures, while suppliers aim to maintain their profit margins, potentially leading to a tug-of-war in pricing negotiations. Looking ahead, the driver IC industry will continue to be influenced by three key variables: upstream wafer costs, raw material prices, and policy risks. Supply chains will closely monitor gold price movements and geopolitical developments, and will adjust their procurement and inventory strategies accordingly to manage potential risks and opportunities in price trends.

（首图来源：Pixabay）