Taipei, Thursday, July 24, 2014 10:37 (GMT+8)
mostly cloudy
Taipei
30°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
  • Vendors partner with Wintel to release US$199-249 notebooks for 2H14

    IT + CE | 11h 44min ago

  • Apple to become largest client for TSMC, say sources

    Bits + chips | 11h 47min ago

  • China market: Xiaomi launches new flagship smartphone

    Mobile + telecom | Jul 23, 21:53

  • Apple new iPhones to come with different time tables to avoid competition

    Mobile + telecom | Jul 23, 21:37

  • Delta expected to enjoy strong performance in 3Q14

    Before Going to Press | Jul 23, 21:53

  • Samsung suffering from infighting; may impact upcoming smartphone plans, says report

    Before Going to Press | Jul 23, 21:37

  • Han's Laser and Goodfeel to attend Touch Taiwan 2014

    Before Going to Press | Jul 23, 21:26

  • TCAS 2014: BenQ to promote short-distance projectors

    Before Going to Press | Jul 23, 21:04

  • Digitimes Research: CSOT to see increased influence in AMOLED industry

    Before Going to Press | Jul 23, 20:35

  • North America semiconductor equipment industry posts book-to-bill ratio of 1.09 in June, says SEMI

    Before Going to Press | Jul 23, 20:33

  • Chassis makers doubtful about rumors Samsung to release metal chassis smartphone

    Before Going to Press | Jul 23, 20:07

  • PTI reports EPS NT$1.96 for 1H14

    Before Going to Press | Jul 23, 19:39

  • Digitimes Research: Wi-Fi ecosystem keeps expanding

    Before Going to Press | Jul 23, 19:09

  • Google to incorporate NFC functionality into Android

    Before Going to Press | Jul 23, 18:53

  • Peak season TV demand expected to be flat on year

    Before Going to Press | Jul 23, 18:51

  • LCD monitor panel prices rise on tight supply, say Taiwan makers

    Before Going to Press | Jul 23, 18:49

Pause
 | 
View more

Analysis of China's revised domestic semiconductor industry goals

RESEARCH EXTRAS | Jul 16, 18:09

Facing a funding shortage for local IC manufacturers, the China State Council in June 2014 published guidelines to strengthen government support for China's semiconductor industry, while stating the short-, mid-, and long-term goals for the related industry supply...

The transition to 4k TV - UHD TV market forecast, 2014-2017

RESEARCH EXTRAS | Jun 26, 13:59

Ultra HD TV vendors are facing challenges due to an overall slowdown in the TV industry and are concerned whether relative supply chains can provide compatible Ultra HD content and services. However, trends show that content makers as well as panel and chip makers...

Taiwan notebooks – 2Q 2014

TAIWAN ICT | Jul 23, 12:53

Taiwan's notebook makers saw an unexpected sequential rise in shipments in the second quarter after the end of Microsoft's support for Windows XP generated a wave of replacement demand. Compared to the same period of last year, their shipments still dropped....

China smartphone market and industry – 1Q 2014

CHINA SMARTPHONE | May 15, 15:08

This report is divided into two sections; the first covers the China smartphone market, including shipments from international players and China-based players. The second section covers the China smartphone industry and covers shipments from local makers in the...

Taiwan LCD monitors – 1Q 2014

TAIWAN FPD | May 13, 15:41

Monitor shipments from Taiwan makers declined in the first quarter of 2014 mainly due to seasonality. And both upstream LCD panel suppliers and downstream system vendors remain conservative about the monitor market in the second quarter.

DIGITIMES Translation Services
DIGITIMES Marketing Services
2014 global notebook demand forecast