Supply of polarizers to remain tight in 2H21, says BenQ Materials

The global supply of polarizers was tight in the first half of 2021 and the tight supply is expected to continue in the second half, according to president Jay Liu of polarizer maker BenQ Materials at an August 18 investor conference.

The supply of compensation film, a key material for making polarizers, was also tight in the first half of 2021 and the situation will remain in the second half or even until 2022, Liu said. However, BenQ has not been impacted by the shortage due to good business relations with suppliers of compensation film, Liu noted.

Viewing that TFT-LCD panel makers have plans to expand production capacities in 2022, the tight global supply of polarizers is expected to ease in 2022, Liu indicated.

While polarizers take up 80% of consolidated revenues currently, BenQ is making efforts to gradually reduce the revenue proportion to a target of below 60% in 2023, company chairman and CEO Chen Chien-chi said.

Most of the BenQ-produced polarizers are used in LCD panels at present, but the proportion for use in OLED panels will rise over the next few years, Chen indicated.

BenQ has so far no plans to expand polarizer production capacity, but will increase output through removing bottlenecks in the manufacturing process, Liu said. Besides, BenQ is striving to hike the proportion of sales revenues from polarizers for high value-added models, with the proportion rising from 25% for the first quarter of 2020 to 35% for the first half of 2021, Liu noted.

BenQ's product lines other than polarizers consist of optical film such as anti-shatter film, color shift film and protective film, medical consumable products, separation film of batteries, Chen said.

For separation film of batteries, in particular, BenQ has been in cooperation with Japan-based clients for years and has supplied the product to China- and Thailand-based makers of electric buses and electric hand tools, Liu noted. In view of the large potential demand for batteries used in electric vehicles, BenQ considers expansion of its production capacity for separation film, Liu indicated.

BenQ has reported consolidated revenues of NT$1.355 billion (US$48.4 million) for July, dipping 6.23% on month but rising 8.32% on year, and those of NT$9.714 billion for January-July, growing 15.44% on year.

Source: Company, compiled by Digitimes, August 2021

BenQ Materials chairman and CEO Chen Chien-chi
Photo: Fu Shih-min, Digitimes, August 2021