Taipei, Thursday, February 23, 2017 08:20 (GMT+8)
showers
Taipei
16°C
Digitimes Research: China handset vendors to rely on local AMOLED panel production from 2016
Alex Wolfgram, DIGITIMES, Taipei [Wednesday 26 February 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 marks the fifth AMOLED line to be built in China, following on plans by China-based Tianma, BOE, Visionox and EDO to establish plants, as well as developments for future plans by Century and China Star Optoelectronics Technology (CSOT) to invest in AMOLED production in the future. As such developments unfold, from 2016 onwards China's handset vendors are likely to use AMOLED panels from local makers, according to Digitimes Research.

There are three main issues related to China developing AMOLED panels, namely capital, technology and applications. Since China implemented its twelfth 5-year plan, there has been no shortage of funding from both local governments and the central government. The makers have close relations with smartphone vendors such as Huawei Device and Lenovo, which are continuing to produce high-end models in addition to expanding their influence outside of China. The makers also have close connections with touch panel makers yielding better supply chain integration and exports, so solidifying applications will not be a concern. However, achieving high yields for the technology will be the biggest challenge for China-based panel makers.

Taiwan-based panel makers such as AU Optronics (AUO) are struggling to increase yields for AMOLED panels, with limited supplies going to HTC. Innolux meanwhile is supposed to supply to Nokia, but shipments were suspended due to Nokia's limited sales as a result of certain Microsoft's policies. Therefore, it is uncertain how much further Taiwan's AMOLED panel industry will develop in the near future.

Additionally, China makers are heavily reliant on recruiting talent from Taiwan to develop AMOLED panels, which poses challenges for Taiwan's panel industry, as top engineers are continuing to transfer to companies in China. Moreover, Taiwan's panel makers face yield issues and lack enough resources to make sufficient profits from the segment, which are obstacles that expected to remain standing in the way. As AMOLED panel demand in China grows, however, China's smartphone vendors will turn to the local panel industry, making AMOLED makers in China the main suppliers of the technology to smartphone vendors by 2016, added Digitimes Research.

Realtime news
  • Diode maker Eris to hand out NT$3.46 in dividends for 2016

    Bits + chips - Newswatch | 10h 44min ago

  • Epistar to produce VCSELs

    LED | 10h 46min ago

  • Memory module maker Apacer to hand out cash dividend of NT$2.40 for 2016

    Bits + chips - Newswatch | 10h 50min ago

  • Toshiba to begin mass production of 64-layer, 512-gigabit 3D flash in 2H17

    Bits + chips | Feb 22, 18:19

  • Pegatron subsidiary acquires equipment for plants in China

    Before Going to Press | 10h 45min ago

  • MediaTek gross margin unlikely to rebound

    Before Going to Press | 11h 2min ago

  • Industrial robot makers expanding capacity for upcoming competition

    Before Going to Press | 11h 4min ago

  • PTI to deal out cash dividend of NT$4 for 2016

    Before Going to Press | 11h 5min ago

  • AMD to release Ryzen in March with initial shipments to top 1 million

    Before Going to Press | 11h 6min ago

  • UMC to pay NT$0.50 cash dividend for 2016

    Before Going to Press | 11h 7min ago

  • Diode maker Eris to hand out NT$3.46 in dividends for 2016

    Before Going to Press | 11h 10min ago

  • Transition to 18-inch wafers unlikely to happen over next 3 years, says Applied

    Before Going to Press | 11h 11min ago

  • MediaTek-Richtek deal probed for possible insider trading

    Before Going to Press | 11h 12min ago

  • Elan expects to post 6-9% decrease in 1Q17 revenues

    Before Going to Press | 11h 14min ago

  • WPG expects sales to recover starting 2Q17

    Before Going to Press | 11h 14min ago

Pause
 | 
View more
Innodisk
EYF Enterprises
Analysis of China revised domestic semiconductor industry goals
  • 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.