Taipei, Thursday, November 23, 2017 08:23 (GMT+8)
cloudy
Taipei
16°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
  • Taiwan October unemployment down

    Bits + chips | Nov 22, 19:43

  • Everlight makes loss selling Epistar shares

    Before Going to Press | 11h 24min ago

  • Largan to benefit from smooth shipments of iPhone X

    Before Going to Press | 11h 28min ago

  • Digitimes Research: 45 million Level 1, 2 autonomous vehicles worldwide by 2020

    Before Going to Press | 12h 21min ago

  • Global gaming notebook shipments to reach 5.5 million in 2017

    Before Going to Press | Nov 22, 19:53

  • NPO MLCCs see booming demand

    Before Going to Press | Nov 22, 19:45

  • Foreign investor reportedly to construct PV module plant in Taiwan

    Before Going to Press | Nov 22, 19:00

  • Taiwan market: Nearly 580,000 smartphones sold in October

    Before Going to Press | Nov 22, 18:56

  • Taiwan market: Oppo unveils R11s

    Before Going to Press | Nov 22, 18:54

Pause
 | 
View more

China AMOLED panel capacity expansion forecast, 2016-2020

RESEARCH EXTRAS | Jun 8, 15:37

This Digitimes Research Special Report examines the China AMOLED industry, focusing on the expansion capacity of the makers, the current implementation plans of major smartphone vendors in the market and the technological hurdles faced by China's makers.

Taiwan server shipment forecast and industry analysis, 2017

TAIWAN MOBILE DEVICE | May 31, 10:20

According to surveys and analyses conducted by Digitimes Research, revenues generated from sales of server motherboards, servers, storage systems and related network system equipment by Taiwan-based vendors rose 4.8% on year to reach NT$555.8 billion (US$18.79...

Global tablet market – 3Q 2017

GLOBAL TABLET | Nov 16, 14:59

According to Digitimes Research statistics, third-quarter 2017 global tablet shipments totaled 42.29 million units, outperforming market expectation. Shipments of both brand and white-box tablets showed obvious on-quarter growth with the shopping season kicking...

Taiwan LCD TVs – 3Q 2017

TAIWAN DISPLAY SYSTEM | Nov 14, 14:08

Shipments to North America saw significant growth in the third quarter of 2017 because of seasonality. Year-end holiday promotions are expected to drive up Taiwan's LCD TV shipments in the fourth quarter.

Taiwan small- to mid-size LCD panels – 3Q 2017

TAIWAN LCD PANEL | Nov 13, 15:36

Taiwan panel makers saw strong orders for 18:9 all-screen smartphone applications in the third quarter, during which their 6G LTPS production capacity also increased.

Innodisk
China AMOLED panel capacity expansion forecast, 2016-2020
Global notebook shipment forecast, 2017 and beyond
  • China AMOLED panel capacity expansion forecast, 2016-2020

    This Digitimes Research Special Report examines the China AMOLED industry, focusing on the expansion capacity of the makers, the current implementation plans of major smartphone vendors in the market and the technological hurdles faced by the China makers.

  • Global AP demand forecast, 2017-2020

    Digitimes Research expects global AP shipments to surpass the 1.9 billion mark in 2017, with smartphones remaining the main application. Qualcomm will be leading the market in 2017, as other players continue playing catch up and scramble for funds to invest in more diverse applications.

  • Global notebook shipment forecast, 2017 and beyond

    This Digitimes Special Report examines key factors in the notebook industry, including products, vendors and ODMs, that will affect total shipments in 2017 and through 2021.