The third quarter has historically been a peak season, with robust sales of premium smartphones boosting FocalTech Systems' AMOLED TDDI shipments to continue their upward trend. Meanwhile, the supply chain's readiness to amass inventory has increased due to stable prices for mid-range and low-end TDDI products, resulting in increased demand.
The overall progress of Chinese smartphone brands adopting OLED panels is rapidly advancing. Industry experts predict that by 2025, OLED will dominate the smartphone panel market, with only the lowest-tier models continuing to use traditional LCD panels.
Nan Pao Resins Chemical Group, a Taiwan-based hot melt adhesives manufacturer, has been targeting record-high revenues in 2024 and is aiming for high single-digit revenue growth in 2025. Growth is being driven by promising prospects for its three main product lines, as well as benefits from acquisitions and new plant operations.
With retailers increasingly embracing smart retail solutions, major players are accelerating their adoption of electronic shelf labels (ESL). Walmart launched a significant push to install ESL across its US stores in mid-2024, transitioning from pilot projects to full-scale deployment. This expansion is projected to generate demand for 400-500 million ESL units over the next three years.
Touch panel manufacturer GIS has faced significant operational challenges in 2024. Despite a rebound in consolidated revenue during the third quarter, the company's product mix resulted in a reduced gross profit margin. As GIS's market share in fingerprint recognition continues to expand, the company expects overall performance in 2025 to surpass that of 2024, with fingerprint recognition revenue projected to exceed 10% for the first time.
Novatek posted strong revenue growth in the third quarter of 2024, fueled by high inventory demand for mobile OLED DDIs. However, gross margin slipped from the previous quarter, mainly due to price adjustments for specific chips, rising gold costs, and lower non-recurring engineering (NRE) revenue.
The polarizer market continues to face oversupply pressures, limiting average selling price (ASP) growth. BenQ Materials has strengthened its portfolio with high-value products, including automotive and OLED polarizers, while also commencing shipments of Micro LED materials. Supply and demand for panels in 2025 are projected to remain consistent with 2024, supported by strategic capacity adjustments.
Polarizer manufacturer Cheng Mei Materials Technology (CMMT) has stepped up its deployment in high-value product segments to alleviate the impact of oversupply in the LCD market which has prompted panel makers to shut down some of their fabs.
Leading touch controller chip firm Elan Microelectronics posted strong results in both revenue and profit for the traditional third-quarter peak season. Although the fourth quarter may see a slight drop in revenue as the industry enters its usual off-peak period, the company expects gross margin to remain at a relatively high level. Going into 2025, Elan anticipates robust notebook-related demand to drive higher growth than in the previous two years, with new products entering the market boosting profits as well.
Apple is strengthening its collaboration with China's display industry, aiming to lower production costs and reduce reliance on primary South Korean suppliers, Samsung Display (SDC) and LG Display (LGD). As Chinese OLED technology progresses, this shift is capturing significant attention in the industry.
Display driver IC (DDI) specialist Ilitek is poised to re-enter the capital market in late November as ITH Corporation. Ahead of ITH's upcoming listing on the stock market, chairman Wayne Liang highlights the company's eight-year consolidation period that has strengthened its technical and business capabilities. These efforts have yielded results, with the company securing top-three positions in both the smartphone touch DDI market and the handset OLED DDI market in China.
In the first half of 2024, aggressive stockpiling by terminal manufacturers led to an early depletion of demand, resulting in a lackluster peak season for the display panel industry. This downturn significantly impacted Taiwanese polarizer suppliers, such as BenQ Materials and Cheng Mei Materials Technology, which reported revenue declines due to sluggish market conditions.
Taiwan has pioneered a groundbreaking light field augmented reality (AR) display technology for smart medicine, addressing common issues like dizziness, eye strain, and lack of depth perception typically associated with AR devices. This advanced technology is set to revolutionize high-precision medical procedures, such as minimally invasive surgeries, according to an October 16 announcement by the National Science and Technology Council (NSTC).
Even though a true AI PC sales boom has yet to materialize, both supply chain firms and end-user brands are already innovating in terms of AI PC functions and designs. For Taiwanese integrated circuit (IC) design firms, these new directions present fresh opportunities for peripheral chips. In particular, touch and voice controls are likely to be the most promising additional functions for AI PCs, as computers gradually adopt more intuitive controls from the smartphone realm, moving beyond conventional mice, trackpads, and keyboards.
Coretronic announced an unaudited monthly consolidated revenue of NT$3.435 billion (approx. US$106 million) for September 2024, marking a 5% decrease from NT$3.627 billion in August and a 3% decline from NT$3.553 billion in the same period last year. However, the company's unaudited consolidated revenue for the third quarter of 2024 reached NT$10.694 billion, representing a 7% increase quarter-over-quarter and a 3% rise year-over-year. Consolidated revenue for the first three quarters of 2024 totaled NT$29.782 billion, a slight 1% increase from NT$29.604 billion in the same period last year.
As more reports emerge regarding the possible sanction on Chinese displays, the industry is looking out for further movement from the United States. South Korean media reported that Samsung Display (SDC) president Joo Sun Choi believes that the impact of the United States' actions on South Korea remains to be observed.
E Ink's color-changing e-paper has garnered significant attention since it collaborated with BMW, attracting interest for various products, although these collaborative products remain at a conceptual stage. However, with emerging applications and ongoing technological advancements, color-changing e-paper is expected to yield commercial products by 2025, with handbags emerging as the most promising product category.
Apple's iPhone 16 has seen lower-than-expected initial sales, deepening concerns for South Korean display manufacturers. According to recent reports from South Korean media, LG Display (LGD) is facing particularly severe challenges.
Before 2020, almost all smartphones incorporated LTPS technology for their AMOLED panels. However, many manufacturers are turning to LTPO, especially now that generative AI (GenAI) integration is gaining popularity.
Samsung Display Vietnam (SDV) has announced plans to expand its production facility in Bắc Ninh Province, Vietnam, with an investment of up to US$1.8 billion in Yên Phong Industrial Park. The expansion will focus on producing OLED displays and electronic components, reinforcing Vietnam's position as a vital hub in Samsung's global supply chain.
E Ink Technology has partnered with Netronix, RapidSignage, and Darwin Precisions to create smart medical and recreational solutions centered around sustainable smart display technology. These innovations will be implemented at the soon-to-open Kuang Tien General Hospital Xiangshang Branch.
Radiant, the leading company in backlight modules, has approved the acquisition of 100% equity in Danish optical company NIL Technology ApS (NILT) at their board of directors meeting. A formal equity purchase agreement was signed on September 19, with an equity value of approximately EUR300 million. Radiant will fully fund the acquisition using its own resources, with the deal expected to close in the first quarter of 2025.
South Korean OLED panel manufacturers are poised for a recovery despite a 7.8% year-over-year decline in electroluminescent material procurement in the first half of 2024. The rising demand for IT device panels and the commencement of iPhone 16 production are set to boost their electroluminescent material purchases in the second half of the year.
China-based panel manufacturers are set to implement a two-week production cut during the National Day holiday. Industry projections indicate that the average capacity utilization rate in October will decline to 50-55%, while the overall average for the fourth quarter is expected to fall to approximately 70%, a decrease from 80% in the third quarter.
