Chimei Innolux to Tap Into iPad's Display Supply Chain: CLSA

Taipei, Nov. 15, 2010 (CENS)--Chimei Innolux Corp., the second-largest thin film transistor-liquid crystal display (TFT-LCD) panel maker in Taiwan, is expected to tap into Apple's iPad supply chain by supplying a certain ratio of panels, according to CLSA Asia-Pacific Markets.

The investment group forecasted that next year, LG, Samsung and Chimei Innolux are expected to supply 40%, 30%, and 30%, respectively, of iPad-use display panels.

Some 16 million tablet PCs (or media tablets) are expected to be sold worldwide this year, including about 15 million iPads; while the global shipments are expected to jump to 72 million units in 2011, up 350% year-on-year (YoY), in which iPad are estimated to account for 55.56%.

Industry sources said that the iPad is creating lucrative system-assembly and parts-supply business opportunities to Taiwanese companies. Chimei Innolux is expected to break the Korea-monopoly in iPad's display supply, the added.

Currently, CLSA, LG accounts for 70% and Samsung 30% of iPad's displays. After it successfully got the IPS (In-Plane Switching)-mode wide viewing-angle technology from Hitachi, CLSA said, Chimei Innolux is expected to kick off mass production of such panels in January 2011 and gradually upgrade yield rate.

CLSA forecasted that Chimei Innolux would supply about 10% of iPad's displays in the first quarter of 2011, and the rate would grow to about 15%, 20% and 30% in the second, third, and fourth quarters, respectively.

The investment group estimated that products for tablet PCs, including touch panels, would account for 6% of Chimei Innolux's total revenue in 2011 and the rate would increase to 10% in 2012.