Among the global top-10 TFT-LCD panel makers, Taiwan-based AU Optronics (AUO) and China-based BOE Technology posted the highest January-September 2014 operating profit margin of 9.1%, according to Digitimes Research.
AUO has made efforts to improve its product mix through production of small- to medium-size panels in addition to Ultra HD TV panels while BOE has continued to invest in new facilities.
China Star Optoelectronics Technology (CSOT) meanwhile saw the highest operating profit margin of 16% in the third quarter of 2014 as pricing for 32-inch TV panels rose and as the China government issued new subsidies to the maker for improving and expanding facilities.
Samsung Display is seeing its operating profit margin on the decline as revenues from AMOLED panels are decreasing, while Tianma Optoelectronics' operating profit margin has dropped to around 2%. Japan Display meanwhile saw losses over two consecutive quarters as competition from Sharp increased.
However, JDI and Sharp both expect shipments of high-performance smartphone panels to China vendors in 2015 to increase over 30% while their shipments of Ultra HD TV panels to China vendors are also expected to increase. Samsung will increase production of curved and bendable OLED handset panels to help strengthen its performance while technology improvements for high-end smartphone panels from Taiwan makers will be limited, said Digitimes Research.
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