cens logo

Taiwanese Panel Suppliers Lead the World in UHD TVs

Nov 18, 2013 | By Quincy Liang

Growth in the global TV market has experienced a significant slowdown over the past few years, and organic light-emitting diode (OLED) display panel makers have offered no significant new features to drive consumer interest and spur replacement demand. Late in 2012, panel makers began aggressively pushing new ultra-high-definition panels (UHDs) with 3840x2160-pixel resolution for larger-sized TVs, a more profitable segment of the TV panel market, according to IHS Inc., an industry research company.

Major UHD Players in Taiwan

Taiwan is a leader in the UHD TV industry, with Innolux Corp. and AU Optronics Corp. (AUO), the island's top-two makers of large-sized thin film transistor-liquid crystal display (TFT-LCD) panels, taking a commanding lead in the market for next-generation UHD LCD-TV panels with a combined 78% share of shipments in the first half of 2013 (Innolux 42.8%, AUO 35.6%).

In contrast, LG Display and Samsung Display Corp. of South Korea, which dominate the overall LCD and LCD-TV panel market, held a collective share of only 4% of UHD panel shipments.

Sweta Dash, HIS senior director for display research and strategy, points out that most TV brands are counting on UHD sets to rejuvenate sales, which is why Taiwanese suppliers are focusing heavily on meeting early demand for UHD LCD panels. South Korean suppliers LGD and Samsung, on the other hand, have turned their attention to a different technology: the active matrix organic light emitting diode (AMOLED) panel, which they believe represents the next generation of TVs. This, Dash explains, has allowed the Taiwanese to jump ahead in the early phase of the UHD LCD panel business.

AUO, for example, recently introduced 65- and 55-inch next-generation UHD 4K wide color gamut TV panels, which incorporate Wide Color Gamut (WCG) technology with a saturation of over 100%. The panels feature UHD resolution of 3840x2160 with a 120Hz frame rate, and boast true colors with 3D-like effect.

Great Expectations

UHD shipments are tiny at present, IHS says, amounting to 568,000 units in the first half of 2013, or less than 1% of the total LCD-TV panel market. However, the TV business has high expectations for the technology; in fact UHD was the main topic at Europe's largest technology show, IFA 2013, held in early September in Berlin.

TV panel makers are betting on a high rate of growth for UHD LCD TVs during the next four years. They expect to ship nearly 2.3 million UHD LCD panels this year, up from less than 33,000 units in 2012, according to IHS.

“Television sales declined in 2012, as consumers diverted their spending to exciting new products like smartphones and media tablets,” Dash says. “That's why television brands are working hard to promote exciting new technologies like UHD that they hope will bring the wow factor to the TV market and trigger demand.”

UHD Upside

So far, the UHD market has underperformed the TV industry's expectations, with slower-than-expected demand that has caused panel inventories to swell this year, the research firm says. The oversupply situation has led to sharp price decreases for panels and TV sets, however, making UHD sets more affordable during the holiday season.

Already, 55-inch UHD TVs are available from major brands such as Sony for prices ranging from US$4,000 to $5,000. Meanwhile, cheaper, lower-specification 50-inch products from value brands have fallen to less than US$1,500 in the Chinese market.

AMOLED

LGD and Samsung have focused most of their energies on resolving problems with AMOLED technology, including higher costs as well as manufacturing and yield issues. These challenges have resulted in very-low-volume shipments of AMOLED TVs in the first half of this year.

A 55-inch curved OLED TV in full high-definition format now is selling for around US$14,000, well out of the price range for the mainstream market. This high cost is enough to persuade most panel suppliers and television brands to stay out of the AMOLED segment and instead focus on the UHD LCD-TV business.

However, LGD and Samsung have not been deterred. Since July they have been expanding their UHD panel shipments, gearing up for a battle between the two technologies, IHS notes.

UHD Drives TV Panel Demand

According to IHS, shipments of UHD TV panels reached 400,000 units in the second quarter of 2013, up 142% quarter-on-quarter (QoQ), with a forecast for 800,000 units in the third quarter. While penetration into the TV panel market will be just 1% in terms of units in 2013, it should rise to 8% in 2017. Penetration by revenue will rise much faster, reaching 20% in 2017.

UHD TV panels are primarily found in a limited number of larger-sized models, but they will quickly diversify into a large variety of panel sizes from 3x inches to over 100 inches. While 50-inch and 55-inch panels currently dominate, 2.6 million 60-inch UHD panels will be shipped in 2017, along with 2.3 million 42-inch panels, and 2 million 39-inch and 48-inch panels.

Despite the aggressive activities of panel suppliers, UHD displays still face problems of insufficient content, inefficient production, high prices, and insufficient capacity. For UHD products to realize their full potential, HIS says, manufacturers will have to overcome these obstacles.


Industry In-Focus

Photo credit: UDN

February manufacturing index breaks records in consecutive 25-month stretch

Mar 24, 2022

The Ministry of Economic Affairs said today that in February, the industrial production index was 117.49, with an annual increase of 10.01% due to easing supply chain disruptions and chip shortages. This marks the 25-month consecutive positive growth period, also the second-longest in history. The manufacturing index was 119.76, an annual increase of 10.16%, which set a new high for the same ...


Furniture industry to see lasting change in digitalized era</h2>

Furniture industry to see lasting change in digitalized era

Mar 18, 2022

If there's a keyword that can be used to summarize the past two years, it would be “digitalization.” Across different industries, companies and suppliers are seeking ways to tap into the post-COVID market, and the furniture sector is no different. Here are two trends we've identified that would and continue to shape the market in the coming year and more. Going Digital While the typical con...


Semiconductor chip. Photo source: UDN/Reuters

Domestic chip maker sees growing potential in 2022 auto market

Mar 17, 2022

Memory chip maker Mosel Vitelic Inc. is looking to expand business operations into the automotive market by increasing deliveries to 25% from 20% in 2021. Chairman Rebecca Tang and Vice General Manager Deng Chih-da were present at the investor's conference on Wednesday afternoon. Tang said the company enjoyed a steady growth last year due to the global chip shortage, rounding up total revenue ...



Industry Reports

C85690 forgeable lead-free dezincification resistant brass-made plumbing valve spool. (Forged product) Photo credit: MIRDC

Eco-friendly materials continue to trend amid global industry change

Mar 25, 2022

Industries are focusing on new technologies for better environmental sustainability and to promote the overall protection and safety of consumers. The same is trending in Taiwan's hardware and plumbing sector. Companies and consumers are becoming more and more aware of the long-term impact of pollutive materials on natural resources, and as policies and regulations are changed in other crucial ma...


Toyota's new energy vehicle model. Photo credit: UDN/Reuters

Auto brands and chip makers step up alliances in EV era

Mar 25, 2022

Japanese automotive brand Toyota's recent announcement of reducing production in March due to chip shortages is another setback for the company, as this would not be its first time scaling back capacity in the past two years. Earlier, Toyota had also announced that the chip shortages had slashed the group's production goals from April to June. However, Economic Daily News points out that Toyot...


ARTC and industry supplier representatives show the signed MOU, signifying the alliance's creation. (Photo courtesy of ARTC)

ARTC and Automotive Electronic Industry Reps Ink AI Imagery Chip and Smart Cockpit Alliance

Mar 18, 2022

Top automotive electronic suppliers and Taiwan's leading R&D center in autonomous technology and testing, Automotive Research and Testing Center (ARTC), collectively announced the formation of the “Automotive AI Imagery Chip and Smart Cockpit Display Module Industry Alliance" on March 18. Representatives from Elan Microelectronics, AU Optronics, Chimei Motor, China Motor, RAC Electric Vehicles...



Supplier News

Steel Mark well-recognized as reliable supplier of lock products</h2>

Steel Mark well-recognized as reliable supplier of lock products

Mar 25, 2022

Founded in 1981, Steel Mark is specialized in manufacturing locks and other related hardware. The company's product catalog includes padlocks, motorcycle and bike locks, deadbolt locks, digital door locks, door locks, rim and euro profile cylinders, and concerning hardware and parts. The company currently operates modern manufacturing facilities occupying 3,300 square meters with more than 40...

STEEL MARK ENTERPRISE LTD.


Wire Master's quest for quality and innovation puts them at industry top</h2>

Wire Master's quest for quality and innovation puts them at industry top

Mar 18, 2022

In the face of an ever-competitive global market and pressured by rising costs, Wire Master Industry believes the best chance of increasing its competitiveness is improving product quality and investing more into R&D. This allows Wire Master to be in a prime position to stake a good position in the market. Wire Master is looking to develop long-term partnerships with similar values and focus on p...

WIRE MASTER INDUSTRY CO., LTD.


CM-667 children's chair in Pink. (Photo courtesy of Kuang Shin)

Designing Furniture for Children's Future

Mar 18, 2022

Since the founders' humble beginnings in the 1960s, traveling from his hometown in Chiayi County to urban Taipei City to learn a trade, he has dedicated the eventually-formed Kuang Shin Enterprise to providing quality products. Kuang Shin offers children's desks and chairs, computer chairs, furniture hardware, OA office chair and desks, connected chairs, display shelves, chair bases, and parts...

KUANG SHIN ENTERPRISE CO., LTD.



Insiders' Views

Nan Hoang Traffic Instrument Co., Ltd.</h2><p class='subtitle'>Taiwan First brakes Technology Co., Ltd. </p>

Nan Hoang Traffic Instrument Co., Ltd.

Taiwan First brakes Technology Co., Ltd.

Mar 04, 2021

Nan Hoang Traffic Instrument Co., Ltd is one of the major manufacturers of automobile friction materials in Taiwan and globally. Chairman Austin Cheng has implemented the double-arrow strategy this year - own brand of “YangPo” is adopted to focus on global channels while the “NHC brand focuses on improving market shares in global markets, such as Europe, America, Asia, Australia, and the Middle E...

NAN HOANG TRAFFIC INSTRUMENT CO., LTD.


OmniEyes CEO and Co-Founder Chun-Ting Chou. (Photo courtesy of OmniEyes)

OmniEyes' AI Technology Paves the Way for Traditional Industries' Digital Transition

Dec 15, 2020

The COVID-19 pandemic has accelerated the industries' timeline for implementing digital transformation. However, the how's and what's of applying new technologies and improving the added value to existing products and services can be daunting. Three professors from the National Taiwan University College of Electrical Engineering and Computer Science founded the startup company "OmniEyes," basi...


Caption: Pictured from front row, third right, Changhua County Government Economic Affairs Department Director Liu Yu-ping, County Magistrate Wang Huei-mei, Secretary Chen Bo-tsun pose in front of the exhibition booth. (Photo provided by CHCIA)

Changhua County Government Shores up Biz-Matching to Global Buyers

Nov 18, 2019

■Yang Feng-Chun In a bid to assist manufacturers in Changhua County to expand their market reach overseas against severe competition in the globalized market, Changhua County Government has been an active player in pushing for a makeover and innovation of its local small and medium-sized enterprises. This is done in hopes of establishing stronger connection with international markets. An ex...



Exhibition Highlights

Show grounds at the 2022 Smart City & IoT expo. Photo credit: UDN

Smart City & IoT expo kicks off showcasing energy solutions

Mar 23, 2022

The 2022 Smart City and IoT exhibition kicked off on March 22, featuring top Taiwanese brands showcasing related applications in the sector. It is worth noting that in addition to 5G-related extension and other mainstream smart city applications, energy storage has become a highlight at this show, notably, TECO, Far EasTone, and Gogoro all have offered relative solutions. According to statisti...


2022 Smart City Summit & Expo to kick off on Tuesday</h2>

2022 Smart City Summit & Expo to kick off on Tuesday

Mar 21, 2022

With the 2022 Smart City Summit & Expo scheduled to kick off on Tuesday at the Nangang Exhibition Center Hall 2 from March 22 to March 25, and Kaohsiung Exhibition Center from March 24 to 26, exhibitors are quickly rolling out new products for this year, including TECO Group. In the past few years, TECO has exhibited at the show exhibiting the group's subsidiaries, concentrating on AI, IoT, n...


TIMTOSxTMTS 2022 kicks off on Monday's opening ceremony. Photo credit: Chao Ting Yu/CENS

TIMTOSxTMTS 20222 Mega Show kicks off at Nangang with 950-strong exhibitors

Feb 22, 2022

TIMTOS x TMTS 2022, the first international trade show and the first of its kind on the calendar, kicked off this Monday, with Taiwan Association of Machinery Industry (TAMI) Chairman Larry Wei pointing out that business orders generated from the mega show are expected to hit USD$$1.7 billion (NTD$47 billion). President Tsai said that in the face of the impacts caused by the pandemic, as well ...