According to a report from MoneyDJ, citing the Reuters, as Chinese display manufacturers have been actively expanding their production capacity and aggressively capturing market share in recent years, it has raised concerns in the U.S. about potential dependence on China for a critical component in military technologies, posing significant security risks.

The Reuters referenced an upcoming report titled “Displays are the New Batteries,” by author Joe McReynolds, who emphasizes that displays are becoming increasingly crucial in computerized military equipment, including fighter jets and augmented reality systems that enable troops to overlay digital information on their battlefield view.

The Reuters pointed out that China’s subsidies for display manufacturers could drive competitors out of the market, potentially leaving the U.S. reliant on China. As a consequence, the market suggests that China’s display industry will be the next target of U.S. sanctions, as the report from MoneyDJ mentiond.

The rapid growth of China’s display industry is largely driven by significant subsidies from the Chinese government, which include low-interest loans, favorable tax rates, and discounted land purchases. It is estimated that these subsidies cover 50% to 70% of the costs associated with display factories, as the report from the Reuters pointed out.

According to the report from MoneyDJ, China has made significant national efforts to support its display industry, gradually surpassing South Korea, which has long dominated the industry.

Due to intense price competition from China, Samsung Display completely exited the LCD industry in June 2022, while LG Display shut down its South Korean LCD TV production line at the end of 2022, as indicated by the report in MoneyDJ.

Read more

• [News] BOE Looking to Become OLED Panel Leader, Rumored to Have a 50% Capacity Expansion
• [News] BOE Reportedly Set to Close the Gap with Korea Competitors in OLED Panel Technology to One Year

(Photo credit: BOE)

As we approach the end of October, how will prices for TV, monitor, and laptop panels shift?

According to TrendForce’s late October panel pricing report, Research Vice President Boyce Fan observed that TV panel prices are stabilizing. Thanks to China’s trade-in program, brands ramped up promotions, and sales during the National Day holiday exceeded expectations, with a year-on-year increase of nearly 20%. This has boosted brand confidence and led to continued stockpiling of TV panels. Panel manufacturers, benefiting from the trade-in policy and production cuts during the holiday, are likely to see TV panel prices stabilize across the board in October.

For small-sized TV panels, demand for 32-inch and 43-inch panels remains steady, and with panel makers controlling production, prices are expected to stabilize. Medium-sized panels, such as 50-inch and 55-inch, are still facing weak demand, but production control could help prices level off.

Meanwhile, large-sized panels, including 65-inch and 75-inch, have seen a strong demand surge, directly benefiting from the trade-in policy. With strict production control of 10.5-generation panels maintaining supply-demand balance, prices are also expected to stabilize.

In the monitor panel market, prices have continued to decline following the trend seen in September as demand enters the off-season. Since late Q3, some panel manufacturers have aggressively negotiated project pricing with brand clients for Q4, exerting pressure on monitor panel prices. Fan noted that the price drop for open-cell panels is expected to widen, with declines ranging from $0.3 to $0.4. Panel module prices for mainstream sizes are projected to fall by $0.2 to $0.3, a more significant drop than the previous month.

As for laptop panels, some brands have slightly revised their Q4 demand upwards to boost production scale, supporting stable shipments of laptop panels. However, some panel manufacturers, in an effort to secure orders, have adopted a more flexible pricing approach, which may affect overall market pricing trends. Currently, average laptop panel prices are expected to remain stable, though high-end IPS models are already seeing a $0.1 drop. By November, panel makers are expected to face increased pressure from clients demanding price cuts, intensifying negotiations on both sides.

Yesterday, TrendForce released panel prices for early September.

• TV

According to Boyce Fan, Research Vice President of TrendForce, entering September, the demand for TV panels remains relatively weak, and with no significant increase in brand-side purchasing momentum, panel prices continue to face downward pressure.

However, major panel manufacturers have announced a two-week shutdown starting in early October, hoping to bring supply and demand back into balance through active production adjustments, thus alleviating the pressure on panel price declines.

Currently, some customers could pull in demand in advance in response to the production cuts, which may help slow down the price decline for certain panel sizes in September.

Recent observations indicate that prices for 32-inch and 43-inch panels are expected to stop falling first in September, due to reduced supply and stable demand in emerging overseas markets.

For medium to large sizes, 50-inch, 55-inch, 65-inch, 75-inch panels are expected to drop by USD 3, USD 2, USD 2 and USD 3, respectively.

• MNT

In the third quarter, MNT panel shipments will be slightly lower than in the second quarter, indicating that the stockpiling peak for brand clients has passed, and with TV panels continuing to face price declines, downward pressure on MNT panel prices is gradually emerging.

However, some panel manufacturers are still striving to maintain panel prices, making only slight price adjustments for some high-end or premium models.

On the other hand, brand clients have high expectations for price reductions, and it is expected that both sides will continue to battle over pricing.

For now, MNT panel prices in September are expected to remain stable, with the actual trend depending on the ongoing negotiations between the two sides.

• NB

In the third quarter, compared to the second quarter, the procurement of NB panels by major brand clients is expected to increase slightly by 1%, indicating that brand clients are maintaining a steady purchasing pace.

However, as the year progresses, it is unlikely to see significant demand growth in NB panels.

As a result, panel manufacturers have become more conservative in pricing strategies and in offering incentives to secure orders compared to the second quarter.

With both buyers and sellers adopting a more stable attitude toward price and quantity, NB panel prices are expected to remain stable in September.

After announcing the end of eight consecutive quarters of losses on July 30, according to a report from Economic Daily News, Innolux’s board of directors decided to authorize Chairman Jim Hung to handle real estate matters, confirming the rumors that the buildings at its 4th Plant in Tainan (5.5-generation LCD panel plant), which was closed last year, will be sold.

It is reported that two buyers, Micron and TSMC, are still in the bidding stage. Regardless of who wins the bid, Innolux will gain significant non-operating income.

According to Innolux’s announcement, to boost company operations and future development momentum, as well as to enhance operating funds, they plan to dispose of the TAC plant-related real estate at the Southern Taiwan Science Park (STSP) D section. Per a report from anue, the STSP D section refers to the 5.5-generation LCD panel plant that was closed last year.

Innolux has been promoting the transformation of its fully depreciated old plants. The 3.5-generation line at the Tainan facility has been repurposed for advanced packaging with Fan-Out Panel Level Packaging (FOPLP), and the 4-generation line has been converted to produce X-ray sensors (through Raystar Optronics), both of which are related to semiconductor products.

Regarding the 4th Plant developments at Tainan, as per a previous report from the Economic Daily News, Innolux stated on June 16 that, based on flexible strategic planning principles, the company continues to optimize production configurations and enhance overall operational efficiency. Some production lines and products are being adjusted to streamline and strengthen the group’s layout and development.

Read more

• [News] Venturing into AI, Innolux Reportedly Partners with Memory Giants, While Its 4th Plant in Tainan to Focus on Packaging Applications
• [News] TSMC Pushes for FOPLP Mass Production by 2027, Reportedly Eyeing on Innolux’s Plant

(Photo credit: Innolux)

The iPhone SE series is Apple’s budget-friendly option, traditionally sourcing screens exclusively from the Chinese manufacturer BOE. However, a report from Korean media outlet The Elec indicated that Apple is expected to use LG Display (LGD) as the second supplier for the OLED screens of next year’s iPhone SE 4, while BOE remains the primary supplier for the iPhone SE 4 screens.

The iPhone SE series typically uses parts from older models but is unique in pairing them with the latest processors, ensuring superior performance compared to competitors in the same price range. Notably, Apple releases the iPhone SE series in emerging markets like India.

Per the same report from The Elec, the iPhone SE 4 is expected to use the OLED display from the iPhone 13, making it easier for display manufacturers to produce.

Apple has historically supported BOE as an iPhone OLED screen supplier to reduce the influence of South Korean companies like Samsung Display and LGD. However, BOE is said to have faced difficulties in securing large iPhone orders due to challenges in meeting Apple’s perforated screen technology requirements, as seen with the iPhone 15.

Moreover, BOE is reportedly encountering challenges in producing OLED screens for the iPhone 16 as well, resulting in lower output compared to its Korean competitors.

Earlier in May this year, both LG Display and Samsung Display secured orders for OLED panels for Apple’s iPhone 16 Pro, according to a previous report from “The Elec.” Subsequently, LG Display also has acquired orders for iPhone 16 Pro Max panels, which could be the first time ever for LG Display to be ahead of Samsung display.

Read more

• [News] Novatek’s Supply Advantage Fades, as Korean Competitor Reportedly Secures iPhone 16 Order
• [News] Taiwanese IC Design Company Novatek Reportedly Secured a Spot in iPhone 16 via Collaboration with LGD

(Photo credit: Apple)