MicroLED is regarded as the next-generation display technology, with Taiwan leading global development due to strong semiconductor and display integration, plus government support. Despite high costs slowing mass adoption, microLED's role in advanced chip packaging co-packaged optics (CPO) creates fresh applications beyond displays.

Taiwan's Innolux and National Yang Ming Chiao Tung University (NYCU) have developed the world's first mass-producible liquid crystal gradient-index (LC gradient index) glasses, overcoming longstanding physical and chemical limitations of liquid crystals. The breakthrough, announced by the National Science and Technology Council (NSTC) on September 1, 2025, was published in Physical Review Applied in August 2025 and highlighted as a special report by the American Physical Society.

Industry insiders anticipate a softer third quarter for LCD monitor panels in 2025, with shipments expected to fall about 5% compared to the second quarter, despite this period usually being a peak season. Manufacturers remain hesitant to reduce prices, even as many products continue to operate at loss-making levels. Notebook panel demand has seen some improvement during the third quarter, supported by back-to-school sales and Black Friday preparations, though pricing remains largely stable amid rising costs.

As China continues to implement dynamic production cuts, the output reduction has stabilized LCD TV panel prices in August. Meanwhile, major Chinese TV brands such as TCL and Hisense have recently released urgent orders, leading industry experts to expect that LCD TV panel prices in September will likely remain stable.

Taiwan's semiconductor automated test equipment (ATE) maker Chroma ATE has filed a lawsuit against Good Will Instrument (GW Instek), accusing the rival instrument maker of infringing on its intellectual property by copying the name and interface of its self-developed automated test system, ATS 8000. The case was submitted to Taiwan's Intellectual Property and Commercial Court on September 1, 2025, under the Fair Trade Act.

Innolux recently decided to close its fifth-generation fab, while AUO is also implementing a replacement plan. Industry insiders predict that all fifth-generation and below panel fabs in Taiwan will be completely shut down within the next two to three years. Even some sixth- or seventh-generation fabs may face closure after two to three years.

Everlight Electronics posted a 3.48% year-over-year decline in consolidated revenue for the first half of 2025, totaling NT$10.095 billion (US$330 million). The company's gross margin remained stable at 31.25%, slipping marginally by 0.26% compared with the same period last year. However, cautious customer ordering in the third quarter has tempered the company's earlier projections of modest annual growth.

The Korea Display Industry Association (KDIA) reported that the combined revenue of South Korean panel companies reached US$10 billion in the first quarter of 2025, marking a return to the billion-dollar milestone after three years. This growth was primarily driven by increased demand for high-end OLED panels and customers placing early orders due to concerns over US tariffs.

Samsung Electronics and LG Electronics' television businesses have fallen from their former status as "flagship divisions" to becoming performance "obstacles," frequently losing ground in competition against Chinese companies. Industry insiders in South Korea are hopeful that the microLED TV market will flourish, helping Samsung and LG reverse their disadvantages in the TV sector.

Sharp Corporation announced on August 29 that it will sell part of its LCD panel factory in Kameyama City, Mie Prefecture, to automotive parts developer Topia for JPY1.2 billion (approx. US$8.172 million). The transaction involves the Kameyama Kita Plant, which ceased production in fiscal year 2020, according to Nikkei and NHK.

The US is reportedly moving to impose a long-term sales ban on OLED panels made by China's BOE Technology, raising the prospect of a significant reshuffle in Apple's display supply chain. The measure is expected to ripple upstream through suppliers of display driver ICs (DDI), foundries, and outsourced semiconductor assembly and testing (OSAT) firms in Taiwan.