TV panel shipment targets will reach a historic high in 2015, despite the strengthening dollar against other currencies, especially those of the Commonwealth of Independent States (CIS) and emerging markets. According to IHS, TV panel unit shipments are expected to grow 5% on year, reaching a record 265 million units in 2015. The total panel area for TV display shipments is expected to increase 9% in 2015 over the previous year.

Due to strong consumer demand for larger TVs and Ultra HD (4K) resolution, TV manufacturers are concerned about possible tight panel supply, even though the rising dollar is cutting TV import prices. The trend toward larger sizes is also causing changes in the production mix. Due to increased demand for bigger TVs, 27% on-year growth is expected for larger displays of 49- to 55-inch; displays between 58- and 65-inch are expected to grow 26%; while displays smaller than 40-inch will grow less than 2%.

"Global first-tier TV brands, like Samsung Electronics and LG Electronics, are sticking to their aggressive shipment plans for 2015, while Samsung Display and LG Display have less room to increase volume to meet area demand from their captive customers' demand for larger TV panels," said Yoonsung Chung, director of large-area display research at IHS. "These two Korea panel makers could experience a tightening of capacity in the second half of 2015, because of planned production-line adjustments."

Other panel manufacturers, particularly China panel makers, are set to increase their 2015 TV panel business targets; however, there is a fear of increasing inventory as the gap between TV panel shipments and TV shipments is widening. Because of slowing sales of TVs, combined with the effects of the strong US dollar, there is a possibility TV brands might lower their business targets. "Global TV brands have factories all over the world, but TV panels are mainly manufactured in East Asia and traded in US dollars," Chung said. "Since panels comprise the largest portion of TV material costs, when the dollar is strong, television brands suffer."

The shipment target for 4K TV panels is also expected to reach a record high this year. In all 40 million units are targeted in 2015 with 15% penetration. 4K TV panel shipments are expected to grow 108% in 2015, and Korea panel makers expect to lead the 4K TV panel market with 57% share, followed by Taiwan manufacturers at 27%, and China manufacturers at 12%.