Novatek, Taiwan's leading display driver IC (DDI) manufacturer, has announced plans to commence mass production of its highly anticipated OLED TDDI technology as early as the second quarter of 2025. This announcement has generated optimism regarding Novatek's prospects in the OLED DDI sector, with projections indicating significant market share expansion in the coming years.
As market demand rebounded in 2024, Bright LED Electronics Corp. achieved stable operations starting in the second quarter. The company posted an after-tax net profit of NT$89 million (approx. US$2.78 million) for the first half of the year, representing a 40% year-over-year growth. Despite ongoing uncertainties in order visibility, Bright LED expects its performance in the fourth quarter and throughout 2025 to remain consistent with that of the first half of 2024.
LG Display (LGD) has sold its LCD plant in Guangzhou, China for approximately US$1.54 billion, a strategic move critical to the company's pivot towards OLED production. This sale, spearheaded by company president Jeong Chul-dong, has sparked industry speculation on whether LGD will now accelerate its investment in the competitive OLED sector.
Despite the growing popularity of OLED, AU Optronics (AUO) believes that LCD will continue to be the standard display technology for many mass-market device applications.
LG Display (LGD) is expected to report losses in the third quarter of 2024, driven by sluggish IT OLED sales, rising raw material costs, and the depreciation of the Korean won against the US dollar. Despite these challenges, the company anticipates an improvement in its fourth-quarter performance as it enhances operational efficiency and begins shipping OLED panels for the iPhone 16 series.
As geopolitical influences grow, LED automotive lighting module manufacturer Laster is planning to establish operations in Thailand and Mexico due to demands from Tier 1 clients. Unlike other companies that invest in setting up their own production lines, Laster will form strategic alliances with local Taiwan-based companies and delegate manufacturing to local partners. Reports indicate that Laster will collaborate with Tatung in Thailand and Wistron in Mexico.
Excellence Opto. Inc. (EOI) has returned to profitability in the first half of 2024, driven by a 110% utilization rate at its Taiwan and China plants. The company is preparing for peak operations from September to November, with next-generation LED project revenue anticipated in the fourth quarter of 2024. Growth is expected to accelerate in 2025-2026, coinciding with the completion of the first phase of EOI's Mexico plant by the third quarter of 2025 and the commencement of shipments in the fourth quarter. EOI projects double-digit revenue growth for 2025.
Following recent geopolitical tensions, concerns regarding the supply chain security of technology products have intensified globally. The United States has expressed intentions to impose restrictions on connected vehicles from China.
LG Display (LGD) and TCL China Star Optoelectronics Technology (TCL CSOT) have signed an agreement for the latter to buy LGD's 8.5G LCD facility in Guangzhou for CNY10.8 billion (US$1.54 billion), further solidifying the dominance of Chinese companies in the global TV panel market. The sale is expected to be completed by March 31, 2025.
The subsidy program implemented by the Chinese government to encourage domestic consumers to replace old TVs with new ones is anticipated to stimulate overall TV demand in the fourth quarter of 2024, according to industry sources.
To combat Chinese companies and satisfy future OLED demand, South Korea-based manufacturers Samsung Display (SDC) and LG Display (LGD) are expediting their investments in 8.6G IT OLEDs. Additionally, LGD announced on September 26 that it has signed a deal with China-based TCL CSOT, agreeing to sell its stake in its large-sized LCD panel and module plant in Guangzhou, China.
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