Taipei, Tuesday, May 23, 2017 13:19 (GMT+8)
thunderstorms
Taipei
31°C
Capacity expansion puts pressure on polarizer pricing
Rebecca Kuo, Taipei; Adam Hwang, DIGITIMES [Thursday 18 May 2017]

Polarizer pricing is coming under downward pressure as a result of capacity expansion by makers, according to industry sources. Prices had been stable in 2017 untill the second quarter, and the pressure on pricing is expected to increase in second-half 2017.

China-based makers Shenzhen Sapo Photoelectronic and Shenzhen Sunnypol Optoelectronics, Taiwan-based Chimei Materials Technology and South Korea-based LG Chem and Samsung SDI have expanded or are expanding polarizer production capacities, resulting in potential oversupply, the sources said.

BenQ Materials has posted consolidated revenues of NT$3.078 billion (US$101 million), gross margin of 14.92%, net operating profit of NT$125.4 million, net profit of NT$154.5 million and net EPS of NT$0.48 for first-quarter 2017. It suffered net operating losses in the third and fourth quarters of 2016, but turned profitable in first-quarter 2017 after the company managed to reduce production cost and hike production efficiency by closing two polarizer production lines in southern Taiwan and concentrating production at three others in northern Taiwan, the company noted.

BenQ Materials has 90% of consolidated revenues coming from polarizers currently, and 70% of the polarizer sales come from its parent company, LCD panel maker AU Optronics (AUO), and 30% from China-based panel makers, the company said. In terms of applications, TVs account for 40% of the polarizer revenues, notebooks and desktop monitors for 40%, and handsets for 20%.

BenQ Materials has also stepped into production of contact lenses which have been available for sale in Taiwan, China, Malaysia, Singapore and other markets, the company noted.

It will begin production of new silicone hydrogel disposable contact lens in second-half 2017, and is poised to produce other biomedical products, looking to hike the revenue proportion for biomedical products from 10% currently to 50% in 2020.

Realtime news
  • China market: Advantech offers SPMS for cloud-computing management of distributed PV systems

    Green energy | 18min ago

  • China sets tentative target installation capacity of 8-10GWp for model PV power stations in 3rd round

    Green energy | 38min ago

  • GIS setting up OLED touch display module capacity

    Displays | 46min ago

  • Senao Networks looks to brisk sales in 2H17

    Mobile + telecom - Newswatch | 56min ago

  • FIH Mobile warns losses to expand in 1H17

    Mobile + telecom | 1h 55min ago

  • Taiwan attracts foreign direct investment of US$1.462 billion in January-April, says MOEA

    Bits + chips | May 22, 22:01

  • Taiwan April export order value down on month, up on year, says MOEA

    Bits + chips | May 22, 21:57

  • Digitimes Research: Taiwan makers to ship nearly 21 million handsets in 2Q17

    Mobile + telecom | May 22, 21:54

  • Phison still eyeing stake in Toshiba chip unit

    Bits + chips | May 22, 21:51

  • Robust chip demand from China smartphone firms to boost revenues at IC distributors

    Bits + chips | May 22, 21:49

  • 1Q17 global cloud computing infrastructure services valued at US$11.4 billion, says Canalys

    Before Going to Press | May 22, 22:24

  • China market: Advantech offers SPMS for cloud-computing management of distributed PV systems

    Before Going to Press | May 22, 22:23

  • Foxconn Electronics to set up innovation R&D center in central China

    Before Going to Press | May 22, 22:13

  • Taiwan market: Alliance Digital Tech to boost mobile e-payment services

    Before Going to Press | May 22, 22:05

  • 3S teaming up with Marvell to develop 28nm controller chips

    Before Going to Press | May 22, 22:04

  • Taiwan market: FET offers rental online consulting services about use of handsets, consumer electronics

    Before Going to Press | May 22, 22:03

  • Axiomtek announces revenues for 2016

    Before Going to Press | May 22, 22:02

  • China outpaces Taiwan in IC design, backend industry output value

    Before Going to Press | May 22, 21:55

  • Vapor chamber becoming new cooling choice for smartphones

    Before Going to Press | May 22, 21:55

Pause
 | 
View more
Innodisk
Wireless broadband developments in Southeast Asia markets
Analysis of China revised domestic semiconductor industry goals
  • 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.