Display panel makers are increasing fab utilization in Q1 2026 for the second consecutive month, with rates expected to exceed the previous quarter, according to Omdia’s latest Display production & Inventory Tracker – February 2026. Omdia forecasts that display panel makers’ fab utilization rate will reach 82% in Q1 2026, up from 81% in Q4 2025.
At the start of the quarter, panel makers had expected to reduce fab utilization in Q1 2026, reflecting concerns over constrained set production and softer procurement due to component shortages and the typical seasonal slowdown following year-end demand. However, in January and February, manufacturers revised those plans upward in response to stronger-than-expected demand.
This demand increase has been driven by several factors, including changes in U.S. tariff policy, pre-emptive purchasing ahead of potential shortages in key components such as memory, and broader efforts by set makers to secure large LCD panel inventories.
Figure 1: Panel makers’ fab utilization rate
