Sourcing the Screen: Mapping the U.S. Display Supply Chain

EXECUTIVE SUMMARY

Introduction

Displays are essential for defense applications, consumer electronics, and U.S. manufacturing. As a result, any disruption in the U.S. display supply chain could lead to a reduction in production in major manufacturing sectors, such as U.S. auto production, or limit the ability of U.S. industry to produce goods critical to national security. This report, therefore, does a detailed analysis of U.S. display production and trade to better understand the reliability and security of the U.S. display supply chain.

The report places significant emphasis on location of the display fabs (country of origin for display cells) in the U.S. supply chain. For U.S. imports, regardless of whether a display cell is directly imported or imported as part of a downstream product, it is critical to understand where this production stage takes place. The manufacturing of the cell in a fab is highly knowledge and capital intensive, with long lead times to build new fabs, so this stage has the potential to be a significant chokepoint.

The analysis in this report finds that the United States is heavily reliant on imports, including imports from China. Further, case studies of the auto sector and the defense industry supply chain indicate that there are significant potential chokepoints. Some displays for defense applications are currently sourced from China, and—for some types of defense products—the only current non-China source is Taiwan, which is subject to weather and geopolitical risks. The key findings are discussed in more detail below.

Key Findings

1. China’s share of display production is rapidly growing . China is the leading global producer of display cells and is projected to account for 75 percent of display production capacity in 2028. Producers outside of China closed a significant number of plants over the last few years.
2. Most displays sold in the United States are incorporated into downstream products. The U.S. market for display cells and modules totaled about $1.8 billion in 2025. The U.S. market (based on shipment values, not retail sales) for smartphones, televisions (TVs), monitors, tablets, and computers exceeded $125 billion in 2025, though the value of the embedded displays was lower.
3. The United States is reliant on display imports. Many imported downstream products use displays from China. The United States is reliant on imports—with only two U.S. producers of microdisplays—which enter both as cells and modules and, at a much larger scale, in downstream products. A substantial share of displays for many sectors—smartphones are an exception—are produced at fabs in China or go through other processing in China. The reliance on China is likely to grow as non-Chinese producers close plants.
4. Auto and defense supply chain case studies reveal significant chokepoints, including sourcing from China. The display supply chains for the U.S. auto and defense industries are overly reliant on countries that are sources of geopolitical or other risks. Any interruption in supply could have major economic or national security impacts.

Download the full report here for comprehensive data and strategic policy recommendations to mitigate the risk of supply chain disruptions.

Silverado In the News: Read about this report in Reuters: Tariffs on digital displays could help avoid U.S. military dependence on China