Innolux Sees No New Fabs Ahead
While Chinese panel producers continue to add Gen 8 and Gen 10 LCD capacity, Taiwan’s two large panel producers have differing opinions as to how to meet that competition. Both are relatively conservative, with both AU Optronics (2409.TT) and Innolux (3481.TT) not having added new or additional fab capacity since 2018. They differ however in their forward plans as AUO is adding capacity to its L6 line in Kunshan, and has announced plans to build a new Gen 8 LCD fab at a later date, which we expect will be in 2025, while Innolux has taken another path and decided not to build any new LCD fabs, but to modify its older fabs to produce higher margin products such as fingerprint sensors and mini-LED backlights.
Innolux has been using its F1 – TPO (2002) Gen 3.5 fab to produce capacitive fingerprint sensors and is expecting to expand that production to biometric identification sensors for credit cards and has announced a collaboration with Super-C Touch (pvt) and Starttek Engineering (pvt) to develop Innolux sensors for the Indian market in 2023. India has plans to have 80% of its 1.2b inhabitants register their fingerprints over the next five years in order to boost the mobile payment industry. Innolux says it has also converted another Gen 3.5 LCD line toward the production of Mini-LED backlights and plans to release its first 75” LCD panels using its own Mini-LED backlights next quarter.
Innolux has been using its F1 – TPO (2002) Gen 3.5 fab to produce capacitive fingerprint sensors and is expecting to expand that production to biometric identification sensors for credit cards and has announced a collaboration with Super-C Touch (pvt) and Starttek Engineering (pvt) to develop Innolux sensors for the Indian market in 2023. India has plans to have 80% of its 1.2b inhabitants register their fingerprints over the next five years in order to boost the mobile payment industry. Innolux says it has also converted another Gen 3.5 LCD line toward the production of Mini-LED backlights and plans to release its first 75” LCD panels using its own Mini-LED backlights next quarter.
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