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Digitimes Research: JDI WQHD technology gaining traction in China high-end smartphone market

Mags Chen, DIGITIMES Research, Taipei

Japan Display's (JDI) WQHD panel technology is furthering its way into the high-end panel segment, most notably in China, where high-end panel demand is continuing to grow. JDI has not only improved production capabilities, but has also expanded its business model through cooperation with its subsidiary Taiwan Display (TDI), and has decided to make Star World Technology Corporation (STC), a Taiwan-based manufacturer of LCD modules (LCMs), into a subsidiary of TDI by acquiring approximately 80% of STC's outstanding common shares.

Digitimes Research believes these factors will give JDI major advantages in China's small- to medium-size high-end panel segment and will increase services that meet diverse customer needs in addition to enhancing its cost competitiveness.

JDI is already starting to show signs of emerging in the China market, with sales to customers in China increasing 2.4 times on year during the second quarter of 2014. The company also expects its revenues for 2014 to reach JPY750 billion (US$7.2 billion).

Digitimes Research added that consumers can expect to see a new wave of handsets featuring JDI's WQHD panel technology hit the market in the fourth quarter of 2014. The technology will make up 60% of the company's overall handset panel revenues in the fourth quarter, up three-fold on year. The company's Pixel Eyes technology meanwhile is expected to make up 20% of JDI's sales during the quarter and that proportion will increase to 40% in the first quarter of 2015.