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Jul 4, 16:00
Big screens, bigger stakes: LG and Samsung compete in the SDV display market

The global automotive industry is rapidly pivoting toward software-defined vehicles (SDVs), fueling a parallel surge in demand for large in-car displays. Market research firm Omdia forecasts that displays larger than 10 inches will account for a staggering 81% of automotive display sales by 2027, nearly doubling their market share from 2021.

With China's annual 618 e-commerce shopping festival coming to an end and government subsidies that helped boost sales earlier this year exhausted in most provinces, several LCD monitor brands are adjusting their panel inventory strategies amid signs of a sharp deceleration in consumer momentum.

Innolux has announced a bold NT$33.7 billion (US$1.12 billion) acquisition of Japan's Pioneer Corporation, a move that signals a strategic pivot toward the high-growth market for intelligent automotive cockpits. The deal, made through its subsidiary CarUX and in partnership with Sweden-based EQT, is expected to close in the fourth quarter of 2025 and marks one of the largest overseas M&A transactions by a Taiwanese tech firm in recent years.

South Korea's leading display manufacturers have officially begun production of OLED panels for Apple's upcoming iPhone 17, according to industry sources. While Samsung Display (SDC) and LG Display (LGD) have secured the initial batch of orders, the total volume appears to be lower than that for the iPhone 16, reflecting geopolitical and economic uncertainties.

E Ink Holdings, a leading manufacturer of electronic paper displays, has announced the creation of a new notebook (NB) e-paper touchpad solution. It integrates color e-paper with notebook touchpads by utilizing Intel Corporation's Smart Base technology, Innovation Platform Framework (IPF), and AI Assistant Builder. The combined technology offers a visualized, AI-assisted human-machine interface tailored for notebook users.
Despite the growing competitive threat from Chinese brands such as Hisense, TCL, and Xiaomi in recent years within the TV and end-display industry, South Korean companies continue to optimize OLED and other technologies to differentiate themselves from competitors. From LG Electronics' perspective, there are three main strategic approaches it is employing.
Japan Display Inc. (JDI) announced it will issue new stock subscription rights to its parent company, Ichigo Trust, to raise JPY95.6 billion (US$664.4 million). The company also plans to sell patents related to LCD and OLED displays, along with the land and buildings of its Mobara factory.
ThinTech Materials Technology (TTMC), a subsidiary of China Steel Corporation, experienced conservative shipment momentum in the first quarter of 2025 due to delays in customer verification schedules from IDM giants and panel manufacturers, as well as the recycling use of FOPLP (Fan-Out Panel Level Packaging) carriers.
Giantplus, a small- and medium-sized panel manufacturer, is undergoing an equity transfer as its parent company, Toppan, plans to transfer its 53.1% stake to JuYi Investment. This equity transfer will be conducted in two phases, with the first phase completed in January and the entire transfer expected to conclude by late August.

Chinese display manufacturer BOE has secured production capacity of roughly 100 million OLED panels annually for Apple's iPhones, according to industry sources. While BOE still lags behind South Korean giants Samsung Display (SDC) and LG Display (LGD) in technology, its rapid expansion is expected to undermine the bargaining power of the Korean suppliers in future negotiations with Apple.

After an unexpectedly strong first quarter driven by front-loaded demand, the global LCD panel industry is now showing signs of cooling. The momentum, boosted by US tariff exemptions and China's "trade-in" subsidies for home electronics, is fading fast as those tailwinds weaken heading into the second half of 2025.

Innolux's automotive subsidiary, CarUX Technology, agreed to acquire Japan's Pioneer for JPY163.6 billion (approx. US$1.03 billion) from private equity firm EQT, marking Taiwan's largest automotive technology deal.