Taipei, Thursday, August 28, 2014 04:07 (GMT+8)
partly cloudy
Taipei
28°C
Digitimes Insight: AUO may kick off panel production in China faster than Korea rivals
Tony Huang, DIGITIMES Research, Taipei [Wednesday 16 March 2011]

AU Optronics (AUO) may see faster progress in its TFT-LCD panel mass production in China than its Korea-based competitors, as the government in Taiwan has lifted all restrictions on its companies acquiring or investing in China-based LCD panel makers.

The main reason for the Taiwan government to lift all restrictions on panel investment in China is to improve Taiwan's competitiveness in the global TFT-LCD panel market and to create greater revenues for Taiwan's TFT-LCD industry.

With the Korea government having allowed its panel makers to invest in China without any restrictions, the Taiwan government's previous restrictions set a huge obstacle to Taiwan panel makers' development in China. But the change of policy means that Taiwan panel makers may now build their own plants in China or invest in the country's existing makers.

China's National Development and Reform Commission (NDRC) so far has only approved applications for 7.5G and more advanced plants from BOE, China Star OptoELectronics Technology (CSOT) and Infovision Optelectronics Kunshan.

Digitimes Research believes AUO is looking to acquire or invest in Infovision. If it cannot work out a deal to acquire or invest in Infovision, AUO will need to apply to the NDRC for approval of a plan to set up its own 7.5G plant in Kunshan, China.

Meanwhile, Korea-based panel makers have turned conservative about investing in China, as both Samsung Electronics and LG Display made losses for their TFT-LCD panel businesses, and may delay mass production in China - currently scheduled for the first half of 2012.

With Korea-based panel makers now placing more emphasis on AMOLED, Digitimes Research believes that China investment will not be the focus of their capex for 2011.

Therefore, with their higher market share in China in 2010 and better relationship with China-based TV vendors, AUO and Chimei Innolux (CMI) may be able to start volume production of LCD panels in China earlier than their Korea-based rivals, further strengthen vertical integration, and enhance their competitiveness in the flat-panel display market in China.

LCD capacity

Source: Digitimes Research, March 2011

Realtime news
  • Innolux notebook panel supply currently faces 20% shortage

    Displays | 5h 24min ago

  • Motherboard price competition expands to Europe

    IT + CE | 5h 34min ago

  • AUO, Innolux have order visibility until 4Q14

    Displays | 6h 4min ago

  • LTPS to become mainstream in handset industry, says CEO of Taiwan Display

    Before Going to Press | 6h 34min ago

  • EPA loosen environmental protection requirements for TSMC planned 18-inch fab

    Before Going to Press | 6h 55min ago

  • Touch Taiwan 2014: GIS displays new whiteboard products

    Before Going to Press | 7h 2min ago

  • HTC to launch HTC Desire 820 in 4Q14

    Before Going to Press | 7h 32min ago

  • LED driver IC vendors look to flat performance in 3Q14

    Before Going to Press | 7h 45min ago

  • VMware may look to form deeper partnerships with Taiwan white-box server players

    Before Going to Press | 7h 46min ago

  • Panel makers see increased orders for vehicle applications

    Before Going to Press | 7h 49min ago

  • AUO to expand in public and commercial segments with new lineup of Ultra HD displays

    Before Going to Press | 7h 51min ago

  • Handset brands launching more Android Wear-based devices

    Before Going to Press | 7h 53min ago

  • China TV vendors changing product mixes to focus more on high-end units for 2H14

    Before Going to Press | 8h 10min ago

  • Production schedules at 12-inch fabs begin to loosen

    Before Going to Press | 8h 18min ago

  • Digitimes Research: China small- to medium-size panel shipments to increase 12.9% in 2H14

    Before Going to Press | 8h 19min ago

Pause
 | 
View more
UHD TV market forecast, 2014-2017
Media news email alerts
Greater China touch panel shipment forecast through 2015
  • 2014 global high brightness LED market, trends and shipment forecast

    For the global LED lighting market, the market size will reach US$25.82 billion in 2014 or a market penetration rate of 23.4%. This is attributable to exponential shipment growth for light bulbs, tubes, and directional lamps.

  • Greater China touch panel shipment forecast through 2015

    This Special Report provides forecasts through 2015 for Greater China touch panel shipments with breakdowns based on technology (glass, film, resistive), application (smartphone, NB and tablet) and by firm.

  • 2014 global tablet demand forecast

    This report analyzes the main players, their strategies and shipments forecasts for 2014, as well as other factors contributing to either growth or decline in various segments within the tablet market, with a particular focus on Apple, Google, Samsung, and Microsoft, along with whitebox vendors.