The growing push toward artificial intelligence is starting to ripple through industries far beyond tech hubs, according to TrendForce, a market research firm. This shift is now influencing the display industry, where rising costs are being felt despite a projected drop in demand for TV panels by the end of 2026. As AI systems require vast computing power, the demand for key components used in both AI and consumer electronics is increasing, creating a ripple effect on the supply chain for television manufacturing. The connection between AI and display manufacturing is indirect but significant. The expansion of AI servers has increased the need for materials like substrates, printed circuits, and power management components, many of which are also used in consumer electronics. These components often rely on the same suppliers and production facilities, leading to competition for limited resources. TrendForce notes that this competition is already causing strain in the production of semiconductors used in display technology, particularly those made with older, "mature" manufacturing processes. As a result, the cost of TV panels is expected to rise by 4 to 7 percent in the fourth quarter of 2026 compared to the previous quarter. However, it's important to note that this refers to the cost of the panels themselves, not necessarily the final retail price of televisions, as manufacturers may absorb some of the increase or adjust their product lines accordingly. Despite the rising costs, demand for TV panels is expected to decline. TrendForce predicts a 4 percent drop in TV panel production in the fourth quarter, as manufacturers have already produced a significant amount of inventory in anticipation of the end-of-year sales season. In response, major Chinese producers like BOE, TCL CSOT, and HKC are planning temporary shutdowns or reduced production during the Chinese Golden Week holiday. Some lines focused on large LCD panels will be affected, with potential interruptions lasting up to a week at TCL CSOT and HKC. This is expected to lower the utilization rate of large 5th generation and higher factories to 79.6 percent in October, down from 83.8 percent in September. The television panel market has become increasingly concentrated, with three Chinese companies now supplying 70 percent of the global market. This concentration has occurred as several manufacturers have gradually exited the LCD panel production for televisions. BOE, TCL CSOT, and HKC now dominate the supply chain. Their decision to temporarily reduce production helps manage inventory and stabilize prices. However, for television brands, the challenge remains: managing higher production costs while facing slowing consumer demand. While there's no sign yet that consumers will see higher prices in stores, the end of the year could be a more difficult period for TV manufacturers as they navigate these pressures.