In a strategic move to diversify its display supply chain, Apple has selected Tianma Microelectronics to provide 7-inch LCD panels for its upcoming screen-equipped HomePod, scheduled for release in 2025. The Chinese manufacturer secured the contract with an aggressive pricing of US$10 per unit, which industry observers note is exceptionally competitive even among Chinese suppliers.
Despite continued weak demand for South Korean displays and components in 2024, an unexpected recovery has emerged near year-end. Analysts interpret this trend as a response to the impending inauguration of Donald Trump, prompting Chinese finished equipment manufacturers to actively build component inventories to mitigate potential escalation in the US-China trade war.
LG Display (LGD) has spent over a decade investing in OLED TV panel technology. However, the market's growth remains sluggish as Samsung Electronics and Chinese manufacturers prioritize LCD TVs. Analysts anticipate a limited recovery in the OLED TV market before 2025.
Taiwan's LCD panel industry, despite making significant technological advances amid intense Chinese competition, continues to face financial challenges. Innolux president James Yang, speaking at the 12th National Science and Technology Conference on December 16, 2024, called for the government to extend industry subsidy programs beyond 2025.
Amid growing US-China tensions, display maker EDT is preparing to diversify its manufacturing footprint beyond Taiwan, joining a wider industry shift that could reshape Asia's tech supply chains. As global manufacturers seek to diversify their supply chains beyond China while maintaining their Taiwan operations, many are adopting what's known as the Taiwan +1 strategy - keeping core operations in Taiwan while expanding to an additional production base in Southeast Asia. EDT sees significant opportunities in this Taiwan +1 strategy, with plans for production line investments in Southeast Asia set for 2025.
Following Huawei's recent advancements, TCL, a leading Chinese home appliance brand, has revealed its dual-folding technology, signaling potential plans for a tri-fold smartphone. This move has sparked industry speculation on whether Samsung Electronics will join the competition in the tri-fold smartphone segment.
Samsung Display (SDC) recently announced its routine personnel changes, naming Vice President Joohyung Lee as the new head of its most profitable division, the small- and medium-sized display sector. Chung Yi, the previous head of this unit, has been promoted to president and will now serve as SDC's president, as highlighted by The Korea Herald.
LCD TV panel prices have fluctuated heavily in 2024: prices surged early in the year, as Chinese panel makers reduced production during the Lunar New Year holidays, and brand manufacturers scrambled to stock up on inventory amid the Red Sea crisis. However, TV manufacturers began to slow down after July, leading to a drop in panel prices as the demand surge subsided.
The patent dispute between Samsung Display (SDC) and BOE has intensified, with each company initiating lawsuits in the US and China. Meanwhile, the geopolitical climate, especially the tensions between the US and China, further complicates this industry rivalry and may affect panels' supply chain and pricing dynamics.
LG Display (LGD) and Samsung Display (SDC) dominate high-end OLED technology, but their reliance on Apple orders faces pressure from cheaper Chinese OLED panels supplied to local IT firms.
PMOLED panel manufacturer RiTdisplay has been aggressively expanding into the energy storage and battery sectors in recent years. After successfully upgrading its energy business to another level, the company is now incubating a biotech venture, focusing on medical plasma wound treatment devices.
PlayNitride has reported its first-ever profit in the third quarter of 2024, driven by strong sales of its new mass transfer equipment introduced in the fourth quarter. The equipment, which generates a gross margin of 40% to 60%, is expected to contribute 10% to 20% of the company's annual revenue. The company anticipates significant quarter-over-quarter revenue growth throughout 2025.
Healthcare Expo Taiwan this year has just begun, featuring major companies such as AUO, Innolux, and Qisda, all of which are actively expanding into the healthcare sector. These companies have set ambitious revenue growth targets for 2025, targeting double-digit increases.
Innolux has seen delays in mass production for FOPLP and no progress in its new LCD panel fab project in India, but company chairman Jim Hung stressed that the firm will not be deterred from forging ahead with its plans.
Japan Display Inc. (JDI) has revised its production timeline for its next-generation eLEAP panels. Originally scheduled for December 2024, the mass production launch has been extended to the first quarter of 2025.
Japan Display Inc. (JDI) has formed a strategic partnership with Taiwanese display manufacturer Innolux Corporation and its automotive subsidiary CarUX to develop next-generation automotive displays.
The fierce competition in the display industry has prompted companies like AU Optronics (AUO), Innolux, and Qisda to diversify into the healthcare sector. These industry leaders will showcase their latest medical innovations at the Taiwan Healthcare+ Expo, running December 5-8 at the Taipei Nangang Exhibition Center, as they seek to establish footholds in the expanding medical market.
Since late August, China's "trade-in" policy has gradually revitalized demand for LCD TV panels, easing the decline in prices. As a result, global TV shipments are expected to see slight growth in 2024. Reports suggest that China's subsidies may continue through 2025, potentially driving further demand for LCD panel restocking.
Sustainability has become a major trend in recent years, with the e-paper market gaining momentum and being seen as a potential trillion-dollar industry. While electrophoretic e-paper currently leads the market, the emergence of cholesteric liquid crystal display (ChLCD) technology is expected to bring significant changes to the sector.
China's dominance in the LCD panel and TV manufacturing sectors is driving up procurement costs for South Korean giants Samsung Electronics and LG Electronics. Additionally, China's aggressive pricing in the Mini LED market is putting pressure on their premium TV strategies, challenging the viability of their OLED TV plans.
Hannstar Display, a mid-sized panel manufacturer, is shifting its automotive development focus to India in response to geopolitical factors. Currently, automotive products represent the company's largest revenue source. The panel maker anticipates this proportion will continue to grow in 2025, with plans to begin assembly and production of automotive products outside Taiwan by 2026.
South Korean companies have increasingly focused on OLED technology to differentiate themselves from Chinese competitors in the television market. However, recent comments from Jun Zhao, CEO of TCL China Star Optoelectronics Technology (TCL CSOT), suggest a potential shift in this dynamic.
AUO made a striking impression at CES 2024 with its Micro LED automotive technology. Over the past year, the company strengthened its mobility segment through its merger with BHTC, establishing the AUO Mobility Solution Corporation (AMS), a wholly owned subsidiary. As the company prepares for CES 2025, it continues to expand its smart mobility portfolio with innovative solutions.
China's government has initiated a new wave of subsidies under the "Trade-In for New" policy for televisions and consumer electronics, effectively boosting TV demand. However, compared to the Mid-Autumn Festival and the National Day Holiday, the sales volume in the latest Single's Day shopping festival was lower than expected. Still, the surge in high-end TVs such as ultra-large screens and Mini LED backlight models significantly lifted overall sales revenue.
