AI-driven demand for advanced packaging is giving old-generation panel fabs and equipment new value. As Taiwan's panel makers accelerate the phaseout of LCD capacity at the 5.5 generation and below, they are splitting into two tracks: selling factories to foundries and outsourced semiconductor assembly and test (OSAT) providers, or keeping lines in-house to develop fan-out panel-level packaging (FOPLP), through-glass via (TGV), redistribution layer (RDL), and glass core technologies.
Ennostar Holdings is targeting a return to full-year profitability after stronger seasonal demand, asset-disposal gains, and a sharp rise in memory prices boosted second-quarter 2026 earnings and unexpectedly revived demand for RGB direct-view LCD TVs. The company said high memory costs are prompting some TV brands to favor RGB backlight solutions over OLED models because they offer lower system costs while delivering improved picture quality.
LCD TV panel prices fell across the board in July and have extended their decline in August as high utilization at makers' high-generation lines has kept the supply and demand situation from improving, even as brands stepped up procurement for the traditional third-quarter stocking season. Industry sources said the sector is pursuing a strategy of "trading volume for price," with Black Friday and Single's Day demand failing to stop the slide.
China's leading display manufacturers are stepping up investments across both LCD and OLED technologies, targeting larger TV panels and expanding into the fast-growing notebook OLED market as they seek new growth opportunities.
The display industry is edging toward a new competitive phase as South Korea and China intensify their rivalry over next-generation OLED technologies amid growing demand for AI-enabled devices.
AUO, Taiwan's largest display panel maker, has spent recent years shifting away from consumer LCD panels toward higher-value markets such as automotive, healthcare and industrial displays. That transformation is now under intense scrutiny.
LCD panels still account for more than 90% of automotive display shipments, but OLED has now crossed a critical qualification threshold in the sector. That progress stems from advances in Tandem OLED technology, which have significantly improved lifetime and reliability. As validation data accumulates and production costs decline, industry researchers expect automotive OLED adoption to accelerate after 2030.
Corning has unveiled an early-stage fiber-to-chip connector concept that could reshape optical packaging if it matures, though the company says the technology is still far from commercial use. GlassBridge is aimed at passive alignment in advanced systems, underscoring the convergence of AI infrastructure, photonics, and packaging.
