Taiwan panel makers are seeing a surge of new panel orders from China-based TV vendors for 60- and 65-inch units as the vendors expect to see sales for the two sizes increase during the October 1 holiday period due to price cuts.

During the holiday period vendors and retailers typically cut TV pricing and in recent years have increasingly done so for Ultra HD TVs and larger-size units. For 2014, consumers in China can expect to see pricing for 60- and 65-inch LCD and Ultra HD units decreased, and vendors are currently stocking up in anticipation for increased sales.

Industry sources noted that during the period the China vendors are expected to slash pricing enough to make up for LCD TV subisidies previosuly issued throughout mid-2012 into mid-2013 by the China government but later discontinued.

Market observers believe the subsidies were major contributing factors to the LCD TV growth in China over the one-year period and their discontinuation have led China's TV market to see limited growth.

The sources added that in response to such trends local vendors are using pricing strategies to spur growth in addition to focusing on large-size TV sales in order to maintain profits.

Taiwan panel makers are expected to receive most of the orders to meet Ultra HD TV panel demand in China during the holiday period and have dropped pricing for the panels to about 1.1 times that of Full HD units.

The sources also noted that Innolux has order visibility until the end of October while AU Optronics (AUO) has so until December due to demand for its curved Ultra HD TV panels.