According to TrendForce’s latest panel price analysis, due to the low inventory level of panel manufacturers and the strategy of maintaining production regulation, the overall supply and demand of TV panels have reached balance. With the strengthening of the stocking momentum for TV panels in China, the price increase trend of TV panels in April can still continue, but the price difference between first-tier and second-tier brand customers is relatively large.

Second-tier brand customers mostly can only accept the price increase of the panel manufacturers, while first-tier brand customers still have a certain degree of bargaining space. Looking at the TV panel prices in April, all sizes have maintained an upward trend, with 32 inches expected to increase by 1USD, 43 inches by 3USD, 50 inches by 6 USD, 55 inches by 7~8 USD, 65 inches by 13USD, and 75 inches by 10~11 USD. With this price increase trend, TV panel prices may have a chance to return to the cash cost level in May.

After the monitor panel prices stabilized in March, there are currently signs of strengthening demand for some consumer models, including high-end gaming monitors and some entry-level affordable ones. This is partly due to downstream customers replenishing inventory demand, and also preparing for the upcoming 618 promotion in China. Therefore, it is expected that the full-size monitor panel prices in April will remain stable.

Turning to notebook panel, Chromebook demand has rebounded in Q2, but other mainstream models are still affected by brand customers’ inventory destocking, leading to no clear increase yet. Therefore, notebook panel prices in April are expected to remain stable, with potential for increase depending on the timing of inventory destocking and demand momentum.

As we look at the global economic growth rates for 2022, one country’s GDP performance stands out: Vietnam. According to the International Monetary Fund (IMF), Vietnam’s estimated GDP growth rate for 2022 is 7%, compared to 2.6% in 2021, making it the most fast-growing country among the neighbouring countries.

Undoubtedly, the country’s impressive performance is largely due to the global supply chain’s migration to the country, driven by the COVID-19 pandemic and the trade war between the US and China.

Pandemic and Trade War as Catalysts for Supply Chain Relocation

Long before the supply chain’s recent move, Samsung had already made aggressive investments by allocating 60% of Samsung Galaxy phones’ production in Vietnam. As a result of that, Vietnam’s electronics manufacturing exports surpassed its largest industry, textiles, a decade ago.

Over the last couple of years, the increasing tension between U.S. and China’s lockdown during the pandemic has made the leading brands aware of the high geopolitical risks as well as the importance of supply chain diversification. These concerns forced them to vigorously re-evaluate the plan to move their manufacturing factories to Vietnam, mitigating the risks they are exposed to.

Laptops: The Last Piece of Puzzle

In this migration, Apple and Dell have been the most proactive brands. After Shanghai’s lockdown, Apple has chosen Vietnam as its second-largest production base for laptops, tablets, and TWS earphones. Luxshare has already attracted attentions for building an AirPod production line in Vietnam, but not until recently, the laptop OEMs in Taiwan have geared up for expanding their investments there: a couple days ago Quanta Computer just announced a $50 million investment to establish a Vietnamese subsidiary to produce MacBooks; Foxconn, another key supplier of Apple’s macbook, is reported to begin their trial run for macbook after an $9 billion investment in 2022 for capacity increase.

On the other hand, it is said that Dell had actively reviewed its suppliers and component sources before 2022 to ensure the stable supply for their bidding market in the North American. As Dell becomes more aggressive in shifting their production lines from China to other locations, suppliers such as Compal and Wistron have also been actively building laptop assembly lines in Vietnam for the past two years.

A flexible production model is on the horizon

In the past, most OEMs considered Vietnam as a backup due to the complex logistic management potentially caused by the relocation of production lines. However, given that the most complicated and rigid laptop supply chains have begun to move, it is generally believed that this represents a solid trend where Vietnam is almost set to take over China’s position.

According to TrendForce, Vietnam is projected to account for 5% of global laptop shipments by 2023, which marks a notable increase from less than 1% just a year ago, making the country the second-largest laptop production base after China.

However, from the perspective of supply chain risk diversification, brand customers demand production models that not only reduce over-concentration in China but also enable quick response to possible contingencies at each production base.

That means even if laptop production is concentrated in China and Vietnam, if there is an urgent situation, OEM factories’ production lines in other regions must be able to provide immediate support. Such production models will inevitably reshape the supply chain landscape moving forward.

(Photo credit: Freepik)

According to a recent report by TrendForce, automotive applications are expected to become the main growth driver of the CIS market, with its share of terminal applications projected to increase from around 9% in 2023 to approximately 15% in 2026.

As self-driving systems become more widespread, the demand for CIS in the automotive industry will continue to increase. Trendforce estimates that the average number of CIS used per car will increase from 3-4 in 2022 to 6-7 in 2026, with the overall market size growing from $1.8 billion in 2023 to over $3 billion in 2026 at a CAGR of over 20%.

On the other hand, due to the stagnation in the number of camera modules, the growth of the smartphone CIS market is expected to be in the low single digits. By 2026, CIS terminal applications in smartphones are predicted to decrease from 63% in 2023 to 51%, while automotive applications are projected to increase from 9% to 15%.

The report offers the following insights into the CIS market for smartphones:

• 10.5% decline in smartphone production in 2022: Due to factors such as war, pandemics, inflation, and inventory adjustments, global smartphone production in 2022 declined by 10.5% to 1.193 billion units, resulting in a 6.7% decline in the shipment of camera modules to 4.46 billion units and a 4% decline in the overall CIS market size to $18.9 billion.
• 5% growth in the CIS market size in 2023: The report predicts that the global smartphone production will increase by 0.9% to 1.203 billion units in 2023, with the shipment of camera modules reaching 4.62 billion units, up 3.6% YoY, driving the overall CIS market size to grow by 5% to $19.8 billion.
• Stagnation in the number of smartphone camera modules: From 2021 onwards, the proportion of shipments of smartphones with four and more rear camera modules has remained at 21%, slightly lower than the 23% in 2020, and is expected to remain at the same level in 2023.
• The trend towards large size and high-resolution CIS: In 2021, Samsung launched the world’s first 200-megapixel CIS, the ISOCELL HP1, while Sony introduced the IMX989 in 2022, marking the official entry of high-end smartphones into the one-inch era.

Additionally, driven by new features such as night photography, it is anticipated that the image quality of smartphone cameras may surpass that of single-lens reflex cameras (SLR) by 2024, resulting in the increase of market size and ASP of CIS.

(Source: TechNews) AUO has been developing Micro LED technology since 2012 and has accumulated profound display expertise and processing capabilities, including resources from PlayNitride and Rohinni. Using its accurate mass-transfer technology, AUO transfers Micro LED chips onto AM-TFT backplanes. AUO also collaborates with Ruida Technology and BenQ Materials to develop Micro LED display driver ICs and packaging surface treatment materials, respectively and uses its image calibration technology to enhance picture quality performance in the display industry.

AUO launched a 1.39-inch commercial smartwatch this year, breaking through technological barriers. The smartwatch has a round design conforming to smartwatch standards, with a high pixel density of up to 326 PPI, maintaining color saturation and high contrast while improving the lifespan of large viewing angles and high-brightness displays. It is energy-efficient and meets the demand for clear information display under bright sunlight, leading the way in mass production.

Upgraded smart cockpit visual effects with Micro LED transparent display

AUO uses Micro LED transparent displays to redefine in-car usage, with high brightness and contrast, along with optical films on printed glass or special structures, to present different textures and integrate with the interior decor. The A-pillar to A-pillar LED immersive display screen achieves a display-on-demand cabin experience without interfering with information reading.

AUO has integrated a 17.3-inch Micro LED transparent display with a 12.3-inch LCD display to create a no-dead-angle naked eye 3D effect. It also includes a DMS recognition system to detect driving behavior and provide safety warnings. This technology can be used in future self-driving car dashboards to create a safer and more comfortable driving experience. Additionally, AUO displayed a 60-inch Micro LED transparent window screen that can be customized for different applications such as car windows, home entrances, smart storefronts, and commercial displays, providing a rich and fascinating visual experience.（Image credit: AUO）

According to TrendForce’s latest research, global NB shipments are forecasted to drop by 5.8% YoY to around 177 million units. However, the downtrend in NB shipments is starting to moderate, and the projected figure for 2023 is expected to represent the lowest point before 2025. Currently, inventory corrections for components and whole devices are taking place in the global supply chain for NBs. Prices are also being cut substantially across sales channels, and PC OEMs have scaled back component procurements. There is a chance that the NB market will return to its usual cyclical pattern and show growth during 2H23, when back-to-school and holiday-related promotions are expected to boost device sales.

However, this scenario will depend on two factors. First, PC OEMs will have been able to effectively get rid of the existing stock of NBs belonging to the older generations during 1H23. Second, global inflation will ease as 2023 progresses. Currently, the IMF forecasts that the rate of global inflation will slide down to 6.5% in 2023, compared with 8.8% in 2023. Such development will help raise the consumer spending related to electronics. All in all, notable inventory corrections and the reduction of inflationary pressure will allow the NB market to leave the gloomy situation of 2022 and get back to upbeat state of quarter-to-quarter shipment growth.

Market Segments for Commercial and Consumer NBs Will Both See Decline in 2023, Chromebooks, Gaming NBs, and Creator NBs Will Become Main Demand Drivers

Looking at the various segments of the NB market, unit shipments and market share are expected to drop for both commercial NBs and consumer NBs. Conversely, Chromebooks will grow in terms of shipments and market share despite various headwinds. In 1H23, mature regional markets such as the US and emerging regional markets such as Indonesia and India will be releasing tenders for Chromebook for educational uses. Turning to gaming NBs, their global shipments are forecasted to increase by 8.3% YoY to 17.45 million units for 2023 thanks to the seasonal demand surge in 2H23. As for creator NBs, the market for them is growing because professional content creators want to purchase a “mobile workstation” in place of a high-end gaming NB for tasks such as building 3D models and processing large amounts of multimedia files. Global shipments of creator NBs are forecasted to rise by 24.9% YoY to around 437,000 units for 2023.

(Note: “NB” stands for notebook or laptop computer.)