Taipei, Tuesday, April 21, 2015 10:01 (GMT+8)
mostly cloudy
Taipei
19°C
Digitimes Research: China handset vendors to rely on local AMOLED panel production from 2016
Alex Wolfgram, DIGITIMES, Taipei [Wednesday 26 February 2014]

On December 17, 2013, China-based touch panel maker Truly Optoelectronics announced that it had entered a joint venture with the Huizhou City Government to invest in a 4.5G AMOLED line that will go into production in the second half of 2015 and have a production capacity of about 15,000 substrates a month. This marks the fifth AMOLED line to be built in China, following on plans by China-based Tianma, BOE, Visionox and EDO to establish plants, as well as developments for future plans by Century and China Star Optoelectronics Technology (CSOT) to invest in AMOLED production in the future. As such developments unfold, from 2016 onwards China's handset vendors are likely to use AMOLED panels from local makers, according to Digitimes Research.

There are three main issues related to China developing AMOLED panels, namely capital, technology and applications. Since China implemented its twelfth 5-year plan, there has been no shortage of funding from both local governments and the central government. The makers have close relations with smartphone vendors such as Huawei Device and Lenovo, which are continuing to produce high-end models in addition to expanding their influence outside of China. The makers also have close connections with touch panel makers yielding better supply chain integration and exports, so solidifying applications will not be a concern. However, achieving high yields for the technology will be the biggest challenge for China-based panel makers.

Taiwan-based panel makers such as AU Optronics (AUO) are struggling to increase yields for AMOLED panels, with limited supplies going to HTC. Innolux meanwhile is supposed to supply to Nokia, but shipments were suspended due to Nokia's limited sales as a result of certain Microsoft's policies. Therefore, it is uncertain how much further Taiwan's AMOLED panel industry will develop in the near future.

Additionally, China makers are heavily reliant on recruiting talent from Taiwan to develop AMOLED panels, which poses challenges for Taiwan's panel industry, as top engineers are continuing to transfer to companies in China. Moreover, Taiwan's panel makers face yield issues and lack enough resources to make sufficient profits from the segment, which are obstacles that expected to remain standing in the way. As AMOLED panel demand in China grows, however, China's smartphone vendors will turn to the local panel industry, making AMOLED makers in China the main suppliers of the technology to smartphone vendors by 2016, added Digitimes Research.

Realtime news
  • Novatek 1Q15 sales disappoint

    Bits + chips | 11h 59min ago

  • Taiwan attracts foreign direct investment of US$1.236 billion in January-March, says MOEA

    Bits + chips | 12h 1min ago

  • Taiwan sees increased March export order value, says MOEA

    Bits + chips | Apr 20, 21:59

  • Samsung Display considers moving LCM business to China or Vietnam, says report

    Displays | Apr 20, 21:57

  • China vendors see TV shipments to markets abroad increase 16% in 1Q15

    Displays | Apr 20, 21:56

  • Baidu quits Japan online search market

    Before Going to Press | Apr 20, 21:38

  • Taiwan NFC supply chain makers faced with unfavorable environment

    Before Going to Press | Apr 20, 21:38

  • Acer founder to pass down shareholding to eldest son, hoping to bring added value to company

    Before Going to Press | Apr 20, 21:36

  • Over 71 million handsets shipped in China market in January-February, says CAICT

    Before Going to Press | Apr 20, 21:35

  • 32-inch TV panel pricing expected to drop US$2-3 during late April

    Before Going to Press | Apr 20, 21:34

  • Motech Industries suffers net loss for 1Q15

    Before Going to Press | Apr 20, 21:30

  • HTC to reportedly launch in-car wireless device

    Before Going to Press | Apr 20, 21:29

  • Novatek 1Q15 sales disappoint

    Before Going to Press | Apr 20, 21:29

  • 4K display revenues to grow 94% in 2015

    Before Going to Press | Apr 20, 21:28

  • Taiwan chipmakers unaffected by earthquake

    Before Going to Press | Apr 20, 21:28

  • Inotera buys equipment from Canon

    Before Going to Press | Apr 20, 21:26

Pause
 | 
View more
High-brightness LED market trends and forecast, 2015
Wireless broadband developments in Southeast Asia markets
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.