TFT-LCD panel maker Innolux's fabs in Southern Taiwan Science Park (STSP) were considerably struck by a large earthquake on February 6 and thus its supply of 39.5- and 58-inch LCD TV panels has become short and the shortage is likely to remain until the second quarter of 2016, according to industry sources.
Innolux has adopted a product differentiation strategy by producing 39.5- and 58-inch TV panels to become globally the only producer for both sizes, the sources said. Innolux produces 39.5-inch TV panels at a 6G line and 58-inch TV one at a 5.5G one in STSP, the sources indicated. Among all Innolux fabs in STSP, the 6G and 5.5G ones suffered the worst damage by the earthquake, the sources noted.
Innolux shipped 1.3 million 39.5-inch TV panels a month on average for a global market share of about 40% in the 40-inch segment, the sources said. Samsung Electronics and LG Electronics account for nearly 30% of Innolux's 39.5-inch TV panel shipments and the six largest China-based LCD TV vendors and LCD TV ODMs together for over 40%, the sources indicated.
Innolux uses over 50% of the 5.5G factory's capacity to produce 58-inch TV panels, with China-based Hisense and five other China-based LCD TV vendors as well as China- and Taiwan-based LCD TV ODMs being clients, the sources said.
Article translated by Adam Hwang
