Taipei, Wednesday, July 29, 2015 05:08 (GMT+8)
partly cloudy
Taipei
25°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
  • Intel defines 6 desktop market segments for CPU platforms, say Taiwan makers

    Before Going to Press | 7h 18min ago

  • Chipbond to boost sales generated from non-driver ICs, says report

    Before Going to Press | 7h 20min ago

  • Demand for UV-A LEDs may take off in 2015, say Taiwan makers

    Before Going to Press | 7h 21min ago

  • PTI looks to moderate growth in 3Q15

    Before Going to Press | 7h 22min ago

  • PC replacement pushed by Windows 10 may come slowly, sat Taiwan makers

    Before Going to Press | 7h 22min ago

  • Taiwan market: Samsung to launch tablet Galaxy Tab S2

    Before Going to Press | 7h 24min ago

  • Taiwan IoT makers have to develop innovative applications to compete in global IoT market, says Acer founder

    Before Going to Press | 7h 26min ago

  • Epistar may suffer 3Q15 net loss per share of NT$0.18

    Before Going to Press | 7h 27min ago

  • Sony to launch new-generation optical discs in cooperation with Panasonic, says Nikkei

    Before Going to Press | 7h 28min ago

  • Taiwan accepts ITA 2

    Before Going to Press | 7h 30min ago

  • Baidu posts 2Q15 revenues of CNY16.58 billion

    Before Going to Press | 7h 31min ago

  • MediaTek 3Q15 sales to rise 15-20%

    Before Going to Press | 7h 31min ago

  • China IC backend firms reportedly obtain orders from Qualcomm, MediaTek

    Before Going to Press | 7h 32min ago

  • China-, Taiwan-based makers hike August prices for solar-grade polycrystalline silicon wafers

    Before Going to Press | 7h 32min ago

  • Digitimes Research: Taiwan makers to see flat shipment growth for large-size panels in 2H15

    Before Going to Press | 7h 33min ago

  • AUO expects weak panel demand in 2H15

    Before Going to Press | 7h 34min ago

  • Smartphone vendors uninterested in Windows 10, say Taiwan makers

    Before Going to Press | 7h 34min ago

  • E Ink and Netronix jointly invest in new development facilities

    Before Going to Press | 7h 35min ago

  • Inotera raises capex for 2015

    Before Going to Press | 7h 36min ago

  • China market: Meizu to start marketing fast mobile chargers

    Before Going to Press | 7h 36min ago

Pause
 | 
View more

Display panels for wearable devices: Market overview and forecast through 2017

RESEARCH EXTRAS | Jul 23, 12:15

The wearables market is a growing focal point for many vendors and players in the display panel supply chain. This Digitimes Research Special Report looks at developments in panel applications in the wearable industry, with a specific focus on panel makers in...

Developments in the UV LED industry

RESEARCH EXTRAS | Jul 16, 18:28

As white LED applications are becoming more widely accepted and common in the market and China makers push more price-competitive solutions, the 2015 global high-brightness LED output value is expected to only grow 7.5% on year. It is not surprising that in a...

Taiwan notebooks - 2Q 2015

TAIWAN MOBILE DEVICE | Jul 24, 15:33

The global notebook market remained sluggish in the second quarter of 2015. The seasonal pattern that has governed the notebook market previously will not appear in 2015, with Taiwan makers set to see on-year declines in the shipments during the second half of...

Taiwan LCD TVs – 1Q 2015

TAIWAN DISPLAY SYSTEM | May 22, 15:51

Taiwan's LCD TV makers saw strong seasonal impacts in the first quarter of 2015. Shipments to North America saw a particularly sharp decline as a result of reduced procurement from Mexico and major client Toshiba quitting the North America market.

Taiwan handsets – 1Q 2015

TAIWAN MOBILE DEVICE | May 15, 15:58

Most of Taiwan's handset makers felt strong seasonal effects in the first quarter. Foxconn suffered particularly as a result of drastic drops in orders from Sony Mobile and Microsoft Mobile.

Developments in the UV LED industry
Taiwan server shipment forecast and industry analysis, 2015
2015 global notebook demand forecast
  • 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.