Taipei, Tuesday, July 29, 2014 11:03 (GMT+8)
partly cloudy
Taipei
32°C
Digitimes Research: China handset vendors to rely on local AMOLED panel production from 2016
Alex Wolfgram, DIGITIMES, Taipei [Wednesday 29 January 2014]

On December 17, 2013, China-based touch panel maker Truly Optoelectronics announced that it had entered a joint venture with the Huizhou City Government to invest in a 4.5G AMOLED line that will go into production in the second half of 2015 and have a production capacity of about 15,000 substrates a month. This follows similar agreements made between China-based Tianma and BOE with Visionox and EDO to establish a 4.5G AMOLED line, as well as developments by Century and China Star Optoelectronics Technology (CSOT) to further invest in AMOLED production. This means that from 2016 onwards, China's handset vendors are likely to mostly rely on AMOLED panels from local makers, according to Digitimes Research.

With investments from the China government to increase local panel makers' production capacity and technological capabilities, coupled with efforts from local panel makers to attract engineering talent from abroad, the AMOLED panel industry is expected to see major breakthroughs starting 2016, and local handset vendors such as Huawei Device and Lenovo are likely to receive most of their panel supplies from makers such as BOE.

On the other hand, Taiwan-based panel makers such as AU Optronics (AUO) are struggling to increase yields for AMOLED panels, with limited supplies going to HTC. Digitimes Research added that as this trend continues, more China-based handset vendors are likely to resort to local panel makers in the future for handset panels, leaving Taiwan makers' future in the market uncertain.

Content from this blog post was provided by the Digitimes Research Tracking team, which focuses on shipment data and market trends in the global mobile device supply chain. Digitimes Research provides quarterly tracking services for market sectors such as Global Tablet, China Smartphone, China Smartphone AP, China Touch Panel, Taiwan ICT and Taiwan FPD. Click here for more information about Digitimes Research Tracking services.

Realtime news
  • Digitimes Research: Smartphone AP shipments in China to grow 2H14

    Bits + chips | 2min ago

  • Digitimes Research: Taiwan makers ship over 67 million large-size TFT-LCD panels in 2Q14

    Displays | 9min ago

  • Taiwan solar firms may rely on markets other than US in 2H14

    Green energy | 18min ago

  • Taiwan market: Acer, Asustek see opportunities from enterprise PC replacement trend

    IT + CE | Jul 28, 22:04

  • Competition for notebook panels may heat up due to South Korea makers increasing output, say Taiwan makers

    Displays | Jul 28, 21:27

  • LG Innotek signs cooperation to focus on Li-Fi business, says report

    Before Going to Press | Jul 28, 21:32

  • M31 Technology obtains USB-IF certification for USB 3.0 Device controller IC solutions via cooperation with Innovative Logic

    Before Going to Press | Jul 28, 21:09

  • Baidu to release smartphone with MediaTek processor, says report

    Before Going to Press | Jul 28, 21:07

  • Holtek nets NT$1.65 per share for 1H14

    Before Going to Press | Jul 28, 21:04

  • Innolux posts 2Q14 net EPS of NT$0.33

    Before Going to Press | Jul 28, 21:04

  • Tatung to set up rooftop PV systems with total installation capacity of 4MWp in Pescadores

    Before Going to Press | Jul 28, 21:04

  • Aces enjoys orders from BMW and Benz

    Before Going to Press | Jul 28, 21:01

  • Foxconn said to invest in Anhui, China

    Before Going to Press | Jul 28, 21:00

  • TWM foresees sequential drop in 3Q14 profitability

    Before Going to Press | Jul 28, 20:59

  • Asustek, Gigabyte releasing new gaming notebooks in 3Q14 to challenge MSI

    Before Going to Press | Jul 28, 20:59

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.

Analysis of China revised domestic semiconductor industry goals
DIGITIMES Marketing Services
Greater China touch panel shipment forecast through 2015
  • 2014 global high brightness LED market, trends and shipment forecast

    For the global LED lighting market, the market size will reach US$25.82 billion in 2014 or a market penetration rate of 23.4%. This is attributable to exponential shipment growth for light bulbs, tubes, and directional lamps.

  • Greater China touch panel shipment forecast through 2015

    This Special Report provides forecasts through 2015 for Greater China touch panel shipments with breakdowns based on technology (glass, film, resistive), application (smartphone, NB and tablet) and by firm.

  • 2014 global tablet demand forecast

    This report analyzes the main players, their strategies and shipments forecasts for 2014, as well as other factors contributing to either growth or decline in various segments within the tablet market, with a particular focus on Apple, Google, Samsung, and Microsoft, along with whitebox vendors.