E-paper chip demand remained resilient in the first half of 2025, driven by steady orders and new premium products, though some customers accelerated shipments to avoid US tariffs. Industry executives expect continued growth in the second half despite trade uncertainties.
Large-volume shipments center on e-shelf labels and e-readers, where both demand and technical specifications continue advancing. Newer applications, including mid-size displays and digital billboards, are gaining commercial traction.
Taiwan's semiconductor companies are expanding beyond traditional e-paper display driver suppliers, with major players including Elan Microelectronics and MediaTek entering through touch control and processor technologies.
Supply chain sources flag potential inventory corrections in e-label chips, particularly if consumer confidence weakens from tariff impacts or other factors. Similar demand fluctuations have occurred multiple times in recent years among major retailers upgrading label systems.
E-reader demand similarly depends on consumer market sentiment, though current order volumes show no clear cancellations before any significant tariff-related downturn materializes.
The market revival has revived veteran chip suppliers previously pressured by intense price competition and narrow margins, with some having considered gradual exits or business pivots.
Environmental, social and governance trends have reinvigorated sector momentum. E-readers and digital notebooks gain favor among consumers and educational institutions, while comprehensive e-label upgrades by major retailers drive substantial growth. Companies including Fitpower Integrated Technology, UltraChip, Solomon Systech and Integrated Solutions Technology have benefited significantly.
Beyond e-readers and shelf labels, diverse e-paper display applications are emerging rapidly. Clear customer demand exists for outdoor signage and large billboard displays, while home e-photo frames increasingly adopt e-paper technology.
Expanding application scenarios require broader chip ecosystems beyond display drivers, including main processors, timing controller chips for enhanced performance, touch control chips for operation, and Bluetooth connectivity chips, all representing new revenue opportunities.
Leading Taiwan firms, including MediaTek, Novatek Microelectronics, Realtek, Himax Technologies and Elan Microelectronics, contribute technologies and products to this ecosystem. While e-paper applications currently represent small portions of these companies' total revenue, numerous development opportunities remain within the broader artificial intelligence of things segment.
Each distinct e-paper application features unique development stages, market characteristics and shipment schedules. Their revenue contributions don't follow typical seasonal electronics cycles, potentially helping balance operational performance.
Article edited by Joseph Tsai
