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.
Iris Optronics, which exclusively provides color e-paper solutions powered by cholesterol liquid crystal display (ChLCD) technology, is actively expanding its global market reach and exploring new applications.
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.
Taiwanese panel maker Innolux has established its Intelligent Automation Solutions (IAS) Business Center, which focuses on three major product lines targeting smart manufacturing and medical care applications. The company expects the unit's revenue to grow by five to tenfold in 2025.
Foldable smartphone shipment momentum continues to be strong for certain major mobile phone brands despite their low popularity in the end market. However, as development shifts toward lighter and thinner designs, brand manufacturers are investing in material upgrades, which has raised the technical threshold for the supply chain.
Polarizer specialist Cheng Mei Materials Technology (CMMT) is collaborating with customers on films, adhesives, and coatings for the fan-out panel-level packaging (FOPLP) backend manufacturing process. The company has made the initial step into the redistribution layer first (RDL-first) manufacturing process, primarily targeting applications such as power ICs and radio frequency integrated circuits (RFIC). Samples are currently being sent, with mass production pending customer validation.
The sale of AUO's Tainan factory to Micron for NT$260,000 (US$8,022) per Taiwanese ping (approx. 3.3 square meters) has triggered a ripple effect in the industrial real estate market. Optical film manufacturer EFUN Technology, which owns a 59,000-square-meter facility in Tainan Technology Industrial Park, is now actively evaluating ways to optimize its assets. Based on product development progress, the company may lease, sell, or retain the facility for its use.
Advanced material provider Wah Hong is developing packaging and materials for Micro LED and Mini LED technologies with prices ranging from US$200 to US$300 per square meter. Company president Ching-Pin Yeh stated that these products are set to become key drivers of growth and he envisioned Wah Hong to be the "TSMC of coating materials."
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.
