Following TSMC’s recent acquisition of Innolux’s Tainan plant for NTD 17 billion, another Taiwanese panel maker, AUO, announced on August 27 that it will sell three idled manufacturing facilities in Tainan, Southern Taiwan as well, as memory giant Micron emerged as the buyer.

Part of buildings and facilities located in Taichung, central Taiwan, would also be sold to Micron. According to a report from Economic Daily News, the total transaction amount is NTD 8.1 billion, with an estimated profit of NTD 4.718 billion, as the deal is expected to be completed by the end of this year.

The same report indicates that after Micron’s failed attempt to acquire Innolux’s 4th Plant in Tainan (5.5-generation LCD panel plant), it turned to AUO for a plant purchase.

To focus on its operational strategy, revitalize assets, and optimize its financial structure, AUO’s board of directors has approved the sale, the report suggests. By acquiring the facilities, Micron plans to further expand its DRAM business in Taiwan, with expectations to develop high-bandwidth memory (HBM) for AI applications.

Industry sources cited by the report have further interpreted the recent plant sales by Taiwan’s leading panel manufacturers as a sign of the rising influence of Chinese LCD companies like BOE and CSOT.

With the Chinese companies dominating the LCD industry, Taiwanese panel manufacturers are moving away from volume-based competition and are gradually selling off plants to mitigate risks associated with price fluctuations in the panel market. Micron’s active investments in Taiwan further strengthen the country’s semiconductor cluster advantage.

Reportedly, AUO pointed out that it originally had three color filter plants in Tainan: the Gen-4 C4A, the Gen-5 C5D, and the Gen-6 C6C.

Among them, the C5D and C6C plants were closed last August, leaving only the C4A plant in production. All three plants are being sold to Micron, with the C4A plant continuing operations under a sale-and-leaseback arrangement.

Micron stated that its operations in Taiwan are designed to meet the growing product demands of the AI era and to reinforce Micron’s market leadership. Through this acquisition, Micron plans to leverage this site to focus on front-end wafer testing,  to supporting the ongoing expansion of DRAM production at Micron’s Taichung and Taoyuan facilities.

Read more

• [News] Micron Advances in Acquiring Innolux’s Southern Taiwan Facility After TSMC Outbids It for the G5.5 Plant
• [News] TSMC Acquires Innolux’s Plant in Southern Taiwan to Expand Advanced Packaging Capacity

(Photo credit: Micron)

From May 14th to 16th, the international display industry’s leading event, SID Display Week 2024, was held in San Jose, USA. Major panel manufacturers such as BOE, TCL CSOT, Tianma, Visionox, Innolux, AUO, Samsung Display, and LG Display showcased a variety of new technological products. TrendForce will review and summarize the development focuses of various panel manufacturers from a technical perspective.

• 3D Display Makes a Comeback, Focusing on Glasses-Free Immersive Experience

3D visual perception is currently the most intuitive way humans perceive the world. Compared to AR/VR, which requires additional wearable devices, glasses-free 3D technology allows users to enjoy a lifelike visual experience without the need for glasses or headsets.

With significant improvements in display quality and user experience, this technology can now be applied to museum exhibits, outdoor advertising, medical education, and more. It has the potential to compete with emerging head-mounted devices in the future.

At the exhibition, in addition to 2D/3D switching, there were light-field displays that enhanced monocular resolution to retinal levels. Coupled with facial tracking and active human-machine interaction systems, these displays expanded the viewing range and 3D viewing angles, delivering an immersive and impressive desktop 3D display experience.

BOE: 110”16K 3D Display & 32”Light Field Display

LGD: Micro OLED+ Light Field Display

• Performance – Enhancing Efficiency to Meet AI Era Demands for Improved Image Quality and Reduced Power Consumption

Addressing the power consumption issues brought about by enhanced image quality can be achieved through various technological advancements such as pixel design, tandem architecture, AI intelligence, micro-lens arrays, oxide backplanes, and dynamic refresh rates. These innovations aim to improve image quality while simultaneously reducing power consumption.

For instance, oxide backplanes have significantly lower leakage currents compared to LTPS backplanes. Combined with new circuit designs, they can maintain voltage for extended periods, keeping flicker within a certain frequency during low-frequency refreshes. Dynamic refresh rates allow the screen’s refresh rate to adapt based on the content displayed, aligning refresh rates with display signals in real-time to provide longer battery life.

With the rapid development of artificial intelligence, AI technologies are being leveraged to enhance image quality while reducing screen power consumption (AI low-power image enhancement technology). The deep integration of AI with screens enables real-time image processing at high resolutions and refresh rates, reducing the power consumption of panel modules and achieving an optimal balance between reduced power consumption and improved image quality.

BOE: AIoT + OLED AI Power Reduction Technology

• Folding – Diversified Folding Designs Expanding Application Scenarios

At the exhibition, panel manufacturers showcased the durability of foldable screens through tests involving robots randomly striking the displays, demonstrating that foldable screens can now meet the demands of most usage scenarios.

In addition to the conventional inward and outward folding screens already available on the market, the exhibition also featured G/Z-shaped tri-fold phones and new foldable plus extendable display panels, allowing users to switch between different screen sizes based on application needs.

The introduction of various flexible display forms includes innovations such as the removal of polarizers, simplified hinges, and stress-designed screens, preparing for a variety of user experiences and interaction modes with the new foldable display panels. These complex module designs are expected to drive technological innovation within the supply chain.

SDC: Foldable OLED Reliability Test

SDC: Flex Note Extendable (Folding+ Sliding) Display Size: 13.8” -> 17.3”

SDC: Flex S Multi Foldable Display (Z-Shaped)

• Transparent Displays – Enhanced Transparency Technology for Better Integration with Environments

Once a futuristic display technology with a sci-fi aura, transparent displays are now being gradually applied in commercial, automotive, and everyday scenarios by various brands. Transparent displays transform glass from a mere transparent material into a display product with vast imaginative potential and rich content.

The key to enhancing screen transparency lies not only in the transparency of the substrate but also in effectively increasing the pixel aperture ratio to maintain image quality. Historically, Micro LED screens have achieved transparency rates of over 60%, while OLED screens have been around 40%. With recent technological improvements, the OLED screens showcased at this exhibition have now reached a 60% transparency level, matching that of Micro LED screens.

The future of transparent displays will be shaped by continued advancements in transparency, image quality, brightness, price, and product positioning. Higher transparency levels will enable seamless integration with environments, facilitating broader application and adoption of this innovative display technology.

Visionox: 10” Transparent OLED (Transparency: 60%)

AUO: 60” Transparent Micro-LED Display (Transparency: 60%)

• New Applications and Technological Breakthroughs

At the exhibition, notable breakthroughs in new applications and technologies included innovative automotive display designs, QDEL displays produced through printing processes, and high-brightness RGB OLEDos. Samsung Display and TCL CSOT both showcased QDEL-related technologies, employing printing methods to add quantum dots that directly convert light into colored images.

In traditional QLED technology, the light source is blue backlight that passes through quantum dots for color conversion. In contrast, the QDEL displays exhibited by Samsung Display and TCL CSOT apply current directly to the quantum dots to generate light. As a result, QDEL pixels can emit light and switch off independently, offering the same deep blacks and rich contrast as OLEDs.

Looking ahead, as the lifespan of the quantum dot light-emitting layer improves, QDEL is poised to become a competitive choice for consumer displays due to its lower cost and superior image quality.

Samsung: 18.2” QD-LED

BOE: P0.3 Micro LED Transformer Display Cluster <-> Center Information Display (CID)  Co-Driver Display (CDD)

TIMANA: 12.3”InvisiVue Display With Textured, Mini-LED

Visionox: Rollable OLED Surface Display

• Green Low-Carbon Technology Industry Development Trends

It is noteworthy that LG Display has focused on developing new technologies under the theme of a better future. BOE, in particular, has set up a green low-carbon zone at the center of their booth, highlighting green manufacturing, green product technology, and green supply chains.

They continue to lead the display industry with technological innovation and green development, promoting the healthy and sustainable growth of the global display industry.

BOE: Green for Future

To alleviate the capacity constraints of CoWoS advanced packaging, NVIDIA is reportedly planning to accelerate the introduction of its GB200, into panel-level fan-out packaging. According to a report from Economic Daily News, originally scheduled for 2026, this shift has been moved up to 2025, sparking opportunities in the panel-level fan-out packaging sector.

Taiwanese companies like Powertech Technology Inc. (PTI) and AU Optronics (AUO) are said to have prepared with the necessary capabilities, expected to seize this market opportunity.

The sources cited by the report from Economic Daily News explain that fan-out packaging has two branches: wafer-level fan-out packaging (FOWLP) and panel-level fan-out packaging (FOPLP). Among Taiwanese packaging and testing companies, PTI is reportedly the fastest in deploying panel-level fan-out packaging.

To capture the high-end logic chip packaging market, PTI has fully dedicated its Hsinchu Plant 3 to panel-level fan-out packaging and TSV CIS (CMOS image sensors) technologies, emphasizing that fan-out packaging can achieve heterogeneous integration of ICs.

PTI previously expressed optimism about the opportunities presented by the era of panel-level fan-out packaging, noting that it can produce chip areas two to three times larger than wafer-level fan-out packaging.

Innolux, a major panel manufacturer, is also optimistic, forecasting that 2024 will be the advanced packaging mass production inaugural year for the group. The first phase capacity of its fan-out panel-level packaging (FOPLP) production line has already been fully booked, with mass production and shipments scheduled to begin in the third quarter of this year.

Chairman of Innolux Jim Hung emphasized that advanced packaging technology (PLP) connects chips through redistribution layers (RDL), meeting the requirements for high reliability, high power output, and high-quality packaging products. This technology has secured process and reliability certifications from top-tier customers, and its yield rates have been well received, with mass production set to commence this year.

Read more

• [News] No Demand Lull? NVIDIA Reportedly Points Out Hopper Will Remain in Short Supply for Some Time
• [News] NVIDIA’s H100 Chip Heat Declines, CoWoS Capacity Eases

(Photo credit: NVIDIA)

Ennostar, a Taiwanese group focusing on the R&D and manufacturing of Micro LED, LED and compound semiconductor, has announced on January 19th a NTD 670 million (roughly USD 21.36 million) sale of the planned Micro LED production facility in Zhunan, Taiwan.

Its subsidiary, EPISTAR, is anticipated to expedite Micro LED development by integrating existing resources in alternative locations.

According to TechNews’ report, Chin-Yung Fan, chairman of EPISTAR, anticipates “symbolic revenue” from Micro LED starting this year. He notes that in 2021, with the rise of Micro LED and Mini LED, existing facilities were insufficient. While planning to build new facilities based on customer demand and market predictions, the pandemic delayed many new technologies.

Following the integration of Ennostar’s factory resources, which are now available for EPISTAR’s use, the decision has been made to sell the Zhunan facility.

During an earnings call in 2023, Ennostar mentioned that the initial capacity demand for Micro LED is still low. Consequently, the company has slightly postponed its plans for new production capacity and will closely monitor the actual market demand.

Fan also emphasized that the volume of Micro LED will undoubtedly increase, and the significant symbolic revenue is expected around 2027, given the longer evaluation time for Micro LED in automotive applications.

However, the sale of Ennostar’s factory also highlights the delayed mass production of Micro LED. Currently, Micro LED is primarily used in large display products like TVs and small displays for smartwatches.

AUO, a Taiwanese company that specializes in optoelectronic solutions, commenced Micro LED production at the end of last year, supplying to high-end smartwatch clients, expected to achieve cost efficiency.

As for Samsung and LG, they view Micro LED TVs as a core market, aiming to enhance profitability through positioning them as high-end television options. At CES 2024, Samsung showcased a transparent Micro LED screen, reaffirming the potential of Micro LED as the next-generation display technology. However, due to the high unit price, mass adoption in the consumer market is currently limited.

Furthermore, despite being a key industry influencer, Apple has not yet integrated Micro LED into its product roadmap. Notably, the Vision Pro, currently available for pre-orders, opts for Micro OLED instead, signaling that the practical implementation of Micro LED in products may still be some time away.

Although it will take some time for mass production to ramp up, Taiwanese manufacturers are actively laying the groundwork for Micro LED technology. Major Micro LED manufacturers, such as PlayNitride, have signed production line construction contracts with EPISTAR and AUO.

EPISTAR has completed construction by the end of last year, while AUO is expected to have production capacity by the end of next year. Both AUO and Innolux, under the umbrella of the CarUX initiative, showcased Micro LED automotive technology at this year’s CES.

Innolux has also purchased a significant amount of transfer equipment from PlayNitride, further enhancing the completeness of the Taiwanese Micro LED supply chain.

Read more

• [News] Samsung Semiconductor to Take Over Samsung Micro LED Business
• [News] AUO and PlayNitride Sign NT$700 Million Deal for 6-inch Micro LED CoC Line in Taiwan

(Photo credit: AUO)

China’s top panel makers, including BOE, TCL CSOT, HKC, and CEC-CHOT, are cutting production to support TV panel prices. Speculations indicate a capacity utilization drop below 60% in the first quarter, benefiting Taiwanese panel companies like Innolux and AUO. Despite these efforts, industry sources caution of a panel industry slowdown due to reduced demand, possibly resulting in lower TV panel prices, reported by TechNews.

The memory industry saw a big downturn due to major players like Samsung, SK Hynix, and Micron drastically reducing production. This resulted in a surge in memory prices and a gradual recovery for the entire memory industry. Panel makers may adopt a similar strategy to boost the overall panel industry as well.

Chinese panel companies currently command a global market share of over 70% in TFT-LCD, with the world’s top 3 LCD panel makers from China: BOE, TCL CSOT, and HKC. As China holds the largest share of panel production capacity, a reduction in production by major players could have a more substantial impact on the panel industry compared to the effects on the memory industry caused by Samsung, Micron, and others.

According to TrendForce’s report in November, BOE began adjusting its production levels in the Q3 and will continue to do so in Q4, with an estimated decrease of 7 percentage points in utilization rates. CSOT, on the other hand, maintained high utilization rates in Q3, supported by major customer stockpiling and the ramp-up of the T9 new production line. However, due to reduced procurement of TV panels by both in-house group brands and international frontline brands, CSOT’s utilization rate is expected to decrease by about 17 percentage points to 76% in Q4.

HKC, which still has two production lines not running at full capacity, anticipates a 14 percentage point decrease in its utilization rates for Q4. This is primarily due to the need to reduce production of one of its main products, the 32-inch TV panel, to alleviate inventory pressures and avoid significant price drops.

In response to this, both Innolux and AUO express their intention to dynamically adjust production capacity utilization in line with market conditions. This strategic flexibility is aimed at fostering a more robust and balanced industry order.

Overall, most panel makers are adopting a more conservative approach to production for 1Q24. Furthermore, several panel makers have indicated a two-week Lunar New Year shutdown for 2024. As a result, TrendForce anticipates that overall Gen5+ LCD panel utilization rates may be revised down to 70% or lower in 1Q24 to maintain the market supply-demand balance.

(Image: BOE)

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