Taipei, Friday, February 24, 2017 07:03 (GMT+8)
showers
Taipei
17°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
  • WPG expects sales to recover starting 2Q17

    Bits + chips | 8h 37min ago

  • VIS expects to post up to 5% revenue decrease in 1Q17

    Bits + chips | 8h 39min ago

  • UMC enters mass production for 14nm chips

    Bits + chips | 8h 40min ago

  • Advantech nets NT$8.96 per share for 2016

    Before Going to Press | 8h 52min ago

  • Digitimes Research: Japan aims at 20% of cars to be self-driving in 2030

    Before Going to Press | 8h 53min ago

  • Acer provides smart health platform to Changhua Christian Hospital

    Before Going to Press | 8h 55min ago

  • SSD and eMMC prices to rise 15% in 2Q17, says DRAMeXchange

    Before Going to Press | 8h 56min ago

  • Oppo, Vivo will struggle to succeed in overseas markets

    Before Going to Press | 8h 57min ago

  • Danen Technology suffers net loss per share of NT$2.10 for 2016

    Before Going to Press | 8h 59min ago

  • CyberLink nets NT$3.15 per share for 2016

    Before Going to Press | 9h ago

  • SunPower to set up PV module joint-venture in China, say reports

    Before Going to Press | 9h ago

  • Fraunhofer ISE reaches 21.9% efficiency for N-type polycrystalline solar cells

    Before Going to Press | 9h 1min ago

  • TSMC on track to move 5nm to risk production in 1H19

    Before Going to Press | 9h 3min ago

  • AMOLED penetration of smartphones estimated at over 27% in 2017

    Before Going to Press | 9h 4min ago

  • Arcadyan Technology posts 2016 net EPS of NT$7.19

    Before Going to Press | 9h 5min ago

  • Silitech Technology suffers net loss per share of NT$0.61 for 2016

    Before Going to Press | 9h 6min ago

  • Kaimei Electronic fails in bid for stake in Ta-I

    Before Going to Press | 9h 6min ago

  • Giantplus Technology to deal out 2016 dividend of NT$0.20

    Before Going to Press | 9h 7min ago

  • TPK Holding to not deal out dividend for 2016

    Before Going to Press | 9h 7min ago

Pause
 | 
View more
Innodisk
Trends and forecasts for the China FPD industry, 2014-2017
The transition to 4k TV - UHD TV market forecast, 2014-2017
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • 2015 global tablet demand forecast

    This Digitimes Research Special Report provides a 2015 forecast for the global tablet market and analyzes the strategies of key market players such as Google, Apple, Intel, and Microsoft.

  • 2015 China smartphone panel trend forecast

    This Digitimes Research Special Report analyzes the strategies of key China-based major panel makers BOE, Tianma and IVO for attacking the different market segments through technology and pricing, and their relationship to local vendors Huawei, Lenovo, ZTE, Xiaomi and Coolpad.