The rise of AI-powered glasses in 2025 is injecting fresh momentum into the recovering consumer electronics market. However, as Chinese brands drive a cost war in smart eyewear, Taiwan's component suppliers face a strategic crossroads: compete on price or carve out niches in high-end technology.

AUO's multi-year dual-axis transformation strategy has begun showing tangible results. The company has reorganized its operations into three core business pillars, preparing for their eventual incorporation as independent Business Groups (BGs). This restructuring aims to provide greater visibility into each pillar's financial performance while optimizing their operational systems for enhanced efficiency.

FocalTech Systems exceeded fourth-quarter revenue expectations, buoyed by record shipments of OLED touch chips as the technology gains traction across devices from smartphones to tablets.

Fueled by strong demand from mobile phone and security control (SEC) clients, TSMC's optical component manufacturing subsidiary, VisEra, reported a robust performance in the fourth quarter of 2024. This surge helped propel the company's full-year revenue to surpass the NT$10 billion (approx. US$305.51 million) milestone, setting a new record in its history.

South Korean panel manufacturers see potential benefits from the Trump administration's consideration of additional display tariffs, as higher prices for Chinese LCD products could strengthen the position of South Korea's OLED and premium display offerings. However, Trump's recent announcement regarding Apple's tariff exemptions presents risks for the company's primary iPhone display supplier.

Radiant Opto-Electronics is pushing beyond displays into meta-optics with back-to-back acquisitions of Finland's Nanocomp in 2023 and Denmark's NIL Technology (NILT) in 2024. NILT develops nano-scale optical components using ultraviolet imprinting and etching, positioning Radiant for applications in 3D sensing, AR waveguides, and automotive and biomedical optics.

Apple has scrapped its plans to develop a Micro LED smartwatch in 2024, dealing a blow to the technology's immediate prospects. Yet, the scene at CES 2025 suggests Micro LED remains a hotbed of innovation, with companies pressing ahead on new products and breakthroughs. Apple's retreat may signal challenges, but it hasn't dampened industry momentum.

Supply chain shifts for Apple's foldable products are taking shape. According to TheElec, Chinese manufacturer Lens Technology is positioned to become the primary supplier of ultra-thin glass (UTG) for Apple's foldable devices, with US-based Corning likely to provide the raw UTG material.

Meta's launch of its Orion augmented reality (AR) glasses has ignited industry interest, with artificial intelligence (AI) accelerating the trend. As a result, full-color micro-LED is increasingly seen as a must-have for next-generation premium AI eyewear.

Benefiting from the rise of color e-paper, both E Ink and Netronix enjoyed a successful 2024, with significant revenue growth. However, both companies saw a sharp year-over-year decline in their revenues for January 2025—over 30% for E Ink and 40% for Netronix.

Taiwan-based polymer materials supplier U-Best Innovative Technology is experiencing steady growth in shipments of hard coat (HC) films for flexible displays as demand for foldable phones continues to rise.

The supply chain has reported that Apple recently initiated updates for its iPad and Mac product lines, primarily transitioning to Apple's own chips. As related suppliers have begun shipping in response to Apple's new product updates since December 2024, operations during the first quarter of 2025 are expected to not be as sluggish as typically anticipated.

Innolux is embarking on a comprehensive transformation plan, with General Manager and COO Chu-Hsiang Yang announcing five strategic initiatives for 2025: enhancing operational efficiency through targeted customer engagement, strengthening its display business, advancing packaging technology, expanding value-added manufacturing, and accelerating digital transformation.

Wah Hong Industrial Co. (Wah Hong), the Taiwan-based optical film manufacturer, reported consolidated revenue of NT$653 million (US$20.4 million) in January 2025, achieving a 3.05% increase month over month and an 8.23% growth year over year.

Following a double-digit increase in glass prices, Corning expects to maintain a 25% net profit margin for its Display Technologies business group in 2025.

Glass technology leader Corning and Samsung Electronics have announced a collaboration to introduce Gorilla Armor 2 on the Galaxy S25 Ultra. This innovation marks the industry's first scratch-resistant, anti-glare ceramic glass material designed for mobile devices.

The e-paper industry is rapidly transitioning from monochrome to color panels, stimulating a trend of device upgrades. The year 2024 marked the beginning of the color e-reader era, with Amazon launching its first color e-reader and Walmart, the leading retailer in the US, implementing electronic shelf labels nationwide. These developments drove significant growth for E Ink Holdings (EIH) and EIH's subsidiary, Netronix. Looking ahead, 2025 is expected to see the rise of color e-paper billboards, promising another year of growth for both companies.

Apple is reportedly set to launch a screen-equipped HomePod in 2025, though contrary to earlier speculation about OLED technology, it will feature an LCD panel exclusively supplied by Tianma Microelectronics in China. Taiwan's Radiant Optoelectronics will handle backlight module production. Industry insiders expect shipment volumes to remain modest throughout 2025.

Lextar Electronics has disclosed its collaboration with European automotive brands to develop smart vehicle miniLED displays, with mass production expected to begin in the next two to three years.

Corning Incorporated recently filed a patent infringement investigation with the United States International Trade Commission (USITC), targeting several TV and panel manufacturers, including LG Electronics, over alleged violations of its LCD glass substrate patents. Industry analysts link this move to Corning's recent struggles with declining market share and profitability.

China continues to expand its production capacity for polarizers, resulting in a market oversupply and making it hard for polarizer prices to rise. To cope, Taiwanese manufacturers such as BenQ Materials, Cheng Mei Materials Technology (CMMT), and Optimax Technology are transforming, with each taking a different path.

Panel manufacturer GIS is set to unveil cutting-edge technologies in smart automotive displays and near-eye displays at CES. Key highlights include head-up displays (HUD), low-reflection coating technology, Mini LED touch display modules, and waveguide display modules. In December 2024, GIS reported consolidated revenues of NT$7.112 billion (approx. US$220 million), a month-over-month increase of 5.65%, driven primarily by a rise in tablet shipments.

After launching substantial subsidies for household appliances in the second half of 2024, Chinese officials recently announced a broadening of such subsidies to include computing, communications, and consumer products, such as smartphones, tablets, and smartwatches, to strengthen domestic demand, thereby boosting related IC demand.

Mini LED backlight televisions are gaining momentum in China, with penetration rates exceeding 10%. These TVs have emerged as standout products under China's "trade-in" subsidy program, propelled by production cost reductions that have broadened their appeal in the mid-range market. Hisense has solidified its leadership position, benefiting from this growing trend.

In 2024, the optoelectronics industry faced challenging market conditions. Despite this, OLED panels are expanding from smartphones into tablets, PCs, and other IT products, driving investments from major players. Microdisplays, automotive panels, and glass substrates are also gaining traction, with competition expected to intensify post-2025.