"The degree of impact of China-Korea FTA on Taiwan will highly depend on whether China will provide China local firms further protection to impose additional import duties on LCD TV panels of foreign panel makers," said Brian Chen, industry analyst with MIC.

Nevertheless, China's determination to increase adoption share of self-made panels has exerted the increasing pressure on both Taiwanese and Korean panel makers.

"However, as 50% to 60% of LCD panels manufactured by Korean makers are still for their own TV brands, Taiwan's players with the most comprehensive product portfolios still stand a higher chance of tapping the needs of Chinese TV brands in the short-run," Chen added.

"Comparing to the signing of China-Korea FTA, the fact that more 8.5G panel production lines in China will be available soon is going to impact Taiwan more," said Chen,

"because this is what Taiwan's panel makers are currently lacking." Chen pointed out that whether Korean brands are able to sustain or increase foothold in the market as this could lead to a limited supply of Korean panels to Chinese or other foreign brands and whether China will increase protection for local brands are two underlying risk factors for Taiwan's LCD TV panel industry in the future.