Following the memory chip crisis, it looks like Chinese phone makers will soon see a price hike in display panels. A new report suggests that China’s polarizing film industry is considering increasing prices due to the ongoing rise in component costs in the market.
TheElec reports that the price of chemicals used in displays is increasing significantly. This move will directly impact the cost of display panels for all types of devices.
Sigma Intel, a market research firm, has revealed that the adhesive price for displays has increased by 15% in the second quarter of this year. Meanwhile, the core polarizer materials like polyvinyl alcohol, polyethylene terephthalate, polymethyl methacrylate, and cyclic olefin polymer are also witnessing a price jump.
Polarizer films are special optical filters used in screens to control the light wave direction. It is generally a light gate that blocks unwanted light and allows specific light waves to pass. It is essential for creating visible images and vibrant colors.
The overall cost for polarized films has risen by 10% due to a price increase in components and materials that have reached 70 to 80% higher than the original cost. Some display panel companies are now requesting a 10% boost in supply prices.
China already owns 71.3% of polarized films globally. A price hike in the Chinese display segment can directly impact the phone market worldwide. Sigma Intel predicts:
“China shows localization results in most core materials except compensating films. Commercial mass production and quality stabilization require time, so changes in the core material market share of Korean and Japanese companies will begin in earnest after 2027”.
(Image Credits: Huawei)
