How Will the Mobile Display Industry Fare Amid the Onslaught of US Tariff “Storm”?

Recently, the news of the United States imposing additional tariffs has put the global mobile display industry on high alert. How will this policy impact the industry? Let’s delve into this today.

Before the tariff hikes, the global mobile electronic display industry was booming. China firmly held its position as the world's largest display manufacturing base. In 2024, both the export volume and value of general displays from the Chinese mainland witnessed double - digit growth. The United States was the single largest export destination for Chinese displays. Meanwhile, the market demand for mobile Smart Screens was extremely strong.

However, after the US imposed tariffs, the industry was immediately under immense pressure. Firstly, costs skyrocketed, severely squeezing profit margins. For Chinese display exporters, the additional tariffs significantly increased the cost of entering the US market. Take Apple as an example. Its supply chain was hit hard by the tariffs, leading to a substantial rise in costs. Display suppliers were thus forced to make a difficult choice between absorbing the costs themselves and passing them on. Secondly, market demand fluctuated wildly. As consumer purchasing power declined due to rising prices, consumers’ enthusiasm for electronic products waned. This led to a contraction in the market demand for displays, exacerbating the uncertainty in the industry's development.

In the face of this difficult situation, industry players have taken proactive measures. Many companies are diversifying their supply chains to reduce dependence on the US market. Apple took the lead in shifting part of its production to India and Vietnam. Some domestic display manufacturers are also actively exploring markets in Western Europe and Asia. Moreover, technological innovation has emerged as the key to breaking the deadlock. With the surging demand for OLED displays, manufacturers such as Samsung and BOE have stepped up R & D investment and expanded production scale. This helps enhance the added value of their products and boosts their international competitiveness.

Overall, while the US tariff hikes pose challenges to the industry, they also present opportunities for transformation and upgrading. As long as companies continue to innovate and optimize their supply chains, they stand a good chance of breaking through the current predicament.

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