Taipei, Tuesday, June 30, 2015 22:51 (GMT+8)
partly cloudy
Taipei
31°C
Digitimes Insight: AUO may kick off panel production in China faster than Korea rivals
Tony Huang, DIGITIMES Research, Taipei [Wednesday 16 March 2011]

AU Optronics (AUO) may see faster progress in its TFT-LCD panel mass production in China than its Korea-based competitors, as the government in Taiwan has lifted all restrictions on its companies acquiring or investing in China-based LCD panel makers.

The main reason for the Taiwan government to lift all restrictions on panel investment in China is to improve Taiwan's competitiveness in the global TFT-LCD panel market and to create greater revenues for Taiwan's TFT-LCD industry.

With the Korea government having allowed its panel makers to invest in China without any restrictions, the Taiwan government's previous restrictions set a huge obstacle to Taiwan panel makers' development in China. But the change of policy means that Taiwan panel makers may now build their own plants in China or invest in the country's existing makers.

China's National Development and Reform Commission (NDRC) so far has only approved applications for 7.5G and more advanced plants from BOE, China Star OptoELectronics Technology (CSOT) and Infovision Optelectronics Kunshan.

Digitimes Research believes AUO is looking to acquire or invest in Infovision. If it cannot work out a deal to acquire or invest in Infovision, AUO will need to apply to the NDRC for approval of a plan to set up its own 7.5G plant in Kunshan, China.

Meanwhile, Korea-based panel makers have turned conservative about investing in China, as both Samsung Electronics and LG Display made losses for their TFT-LCD panel businesses, and may delay mass production in China - currently scheduled for the first half of 2012.

With Korea-based panel makers now placing more emphasis on AMOLED, Digitimes Research believes that China investment will not be the focus of their capex for 2011.

Therefore, with their higher market share in China in 2010 and better relationship with China-based TV vendors, AUO and Chimei Innolux (CMI) may be able to start volume production of LCD panels in China earlier than their Korea-based rivals, further strengthen vertical integration, and enhance their competitiveness in the flat-panel display market in China.

LCD capacity

Source: Digitimes Research, March 2011

Realtime news
  • Taiwan market: Huawei Device to launch 7-inch tablet

    Before Going to Press | 34min ago

  • Several first-tier China PV makers to sell solar production lines, say Taiwan makers

    Before Going to Press | 1h 30min ago

  • XMC to be China memory base, says DRAMeXchange

    Before Going to Press | 1h 41min ago

  • Dassault Systemes expanding clients in Taiwan

    Before Going to Press | 1h 53min ago

  • Taiwan market: TWM, FET extend deadlines for below NT$1,000 4G pricing for a month

    Before Going to Press | 2h 6min ago

  • China market: Huawei launches Honor 7

    Before Going to Press | 2h 19min ago

  • Acer opens BYOC experience center in Taiwan

    Before Going to Press | 2h 19min ago

  • Acer sees little impact from Greece debt crisis

    Before Going to Press | 2h 23min ago

  • Acer plans to recruit 1,000 experts for BYOC business in a year

    Before Going to Press | 2h 33min ago

  • IBM and BOE sign agreement to develop health management platform

    Before Going to Press | 2h 48min ago

  • Samsung to ramp up shipments of OLED panels, DRAM and, flash chips

    Before Going to Press | 2h 50min ago

  • Taiwan IC design houses looking for more orders from China handset vendors

    Before Going to Press | 3h 20min ago

  • Taiwan makers hold advantage for wearable PMOLED orders

    Before Going to Press | 3h 20min ago

  • Taiwan market: Projector market at less than 20,000 units in 1Q15

    Before Going to Press | 3h 20min ago

  • Wei Chi Energy, APPSRC cooperate to develop hybrid battery system for electric vehicles

    Before Going to Press | 3h 21min ago

  • Tainergy Tech obtains solar cell orders with shipments scheduled through August

    Before Going to Press | 3h 23min ago

  • Stagnant demand for tablets to continue in 2H15, say Taiwan makers

    Before Going to Press | 3h 24min ago

Pause
 | 
View more
Taiwan server shipment forecast and industry analysis, 2015
Wireless broadband developments in Southeast Asia markets
The transition to 4k TV - UHD TV market forecast, 2014-2017
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • 2015 global tablet demand forecast

    This Digitimes Research Special Report provides a 2015 forecast for the global tablet market and analyzes the strategies of key market players such as Google, Apple, Intel, and Microsoft.

  • 2015 China smartphone panel trend forecast

    This Digitimes Research Special Report analyzes the strategies of key China-based major panel makers BOE, Tianma and IVO for attacking the different market segments through technology and pricing, and their relationship to local vendors Huawei, Lenovo, ZTE, Xiaomi and Coolpad.