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AUO and Innolux Battle for Leadership in Taiwan’s Flat Panel Business
As the large area flat panel industry enjoys the fruits of the unprecedented rise in panels ASPs, competition AUO and Innolux, has heated up as they strive to outrace each other in sales to become the top vendor in the Taiwan display industry, according to market sources. AUO had been the revenue leader for last five years.
But the rankings of the two firms reversed in the first five months of 2021 when Innolux ramped up sales by 56.36% Y/Y to NT$145.56B (US$5.2 B) as AUO's gained 51.34% to NT$144.66B ($5.1B). Innolux president, James Yang, attributed the increased sales to the firm's ability to cash in on the emerging end-market demand supporting pandemic-triggered stay-at-home activities and create value-added products through the corporate transition.
Innolux' venture into the assembly and sales of TV sets in addition to its previous offerings of open-cell products and LCM modules also significantly ramped up its sales performance. Innolux is also expected to continuing outperforming AUO in 2021, by shipping 38.9m m2 LCD panels with AUO shipping 35.4m m2. AUO kicked off a multi-prong scheme to build a high value-added ecosystem in order to stay competitive amid changing industry environments. These revenue statistics and shipment volumes begs the issue as LCD prices start decreasing in andQ4 of 2021 and then fall back to 2020 levels in 2022, when ASPs could drop by 60% or more
As the large area flat panel industry enjoys the fruits of the unprecedented rise in panels ASPs, competition AUO and Innolux, has heated up as they strive to outrace each other in sales to become the top vendor in the Taiwan display industry, according to market sources. AUO had been the revenue leader for last five years.
But the rankings of the two firms reversed in the first five months of 2021 when Innolux ramped up sales by 56.36% Y/Y to NT$145.56B (US$5.2 B) as AUO's gained 51.34% to NT$144.66B ($5.1B). Innolux president, James Yang, attributed the increased sales to the firm's ability to cash in on the emerging end-market demand supporting pandemic-triggered stay-at-home activities and create value-added products through the corporate transition.
Innolux' venture into the assembly and sales of TV sets in addition to its previous offerings of open-cell products and LCM modules also significantly ramped up its sales performance. Innolux is also expected to continuing outperforming AUO in 2021, by shipping 38.9m m2 LCD panels with AUO shipping 35.4m m2. AUO kicked off a multi-prong scheme to build a high value-added ecosystem in order to stay competitive amid changing industry environments. These revenue statistics and shipment volumes begs the issue as LCD prices start decreasing in andQ4 of 2021 and then fall back to 2020 levels in 2022, when ASPs could drop by 60% or more
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