Supply chain
Digitimes Research: China panel makers shift 8.5G capacity to small- to mid-size applications
Tony Huang, DIGITIMES Research, Taipei

China panel makers are starting to show signs of shifting production capacity on 8.5G lines from large-size applications to small- to medium-size ones in order improve operating margins and to avoid excess supply of large-size panels produced from the lines, according to Digitimes Research.

CEC Panda LCD Technology has taken such measures on its Nanjing-based facilities where it has allocated 30% of its production to TV panels and 70% to high-end smartphone panels, tablet panels and even high-end notebook panels.

Additionally, Tianma Optoelectronics has improved its operating margin to 5.4% in the second half due to shifting similar capacity to small- to medium-size applications and has also switched focus away from feature phone panel production to smartphone panel production.

Digitimes Research added that it also sees similar moves in production shifts from Infovision Optoelectronics in 2014.

Content from this article was part of a complete Digitimes Research Chinese-language report that has not yet been translated into English. If you are interested in an English version of the report or wish to receive more information about the report, click here to contact us and we will get back to you as soon as possible. Digitimes Research also provides quarterly tracking services for market sectors such as China Smartphone, China Smartphone AP, Taiwan ICT and Taiwan FPD. Click here for more information about Digitimes Research Tracking services.

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