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China handset vendors look to Taiwan and Japan suppliers for high-end panels

Sammi Huang, Taipei
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China-based handset vendors have recently been seeking out Taiwan- and Japan-based panel makers to provide midrange and high-end panels, as China-based panel makers have been struggling to provide the technology, according to industry sources.

The handset vendors including Huawei Technologies and Lenovo have been looking to promote more midrange and high-end products in conjunction with China-based panel makers in order to expand beyond the entry-level handset segment within emerging economies such as the China market. However, due to lacking technology from the panel makers, the vendors are now starting to ramp up their orders for the technologies to Taiwan- and Japan-based panel makers such as Innolux Corporation, Sharp and Japan Display, said the sources.

China-based panel makers will most likely need to wait until the second half of 2013 before they can start cutting LTPS TFT LCD panels on their 5.5G lines, added the sources.

Smartphone shipments in China are expected to reach approximately 300 million units in 2013, for a global market share of about 30%, added the sources.

Huawei

Huawei is expected to put in orders to Japan- and Taiwan-based panel makers for high-end smartphone panels
Photo: Michael Lee, Digitimes, March 2013

Article translated by Alex Wolfgram