Panel Producers Focus on Niche Products: Innolux Targets VR Headsets and AUO Develops New Applications

According to WitsView, a division of TrendForce, the glut ratio of panels is expected to increase to 4.3 percent in the fourth quarter of 2018, leading to a drop in panel price. Facing the difficulties of the oversupply and decreased price, panel producers have shifted their focus to niche applications in order to break through the low price competition.

Innolux has developed a high resolution sickness-free VR headset which won an innovative product award. The company aims to expand its presence in the growing gaming market with its VR headset and expects to mass produce the product in 4Q19.

The company has also focused on Mini LED applications. Innolux has revealed that its shipment of Mini LED PIC would begin in the fourth quarter of 2018. Moreover, several automobile manufacturers have placed orders to Innolux for its automotive displays.

Another leading player in the panel industry, AU Optronics (AUO), has been working on its business transformation to keep on its feet in the uncertain environment. The company has targeted high-end consumer products such as gaming displays and automotive displays. Paul Peng, chairman of AUO, noted that the company takes more than 50 percent of the market share for gaming displays and ranks in the top two in the automotive display market.

Moreover, AUO also puts efforts in new business opportunities including retail and medical applications. Although these applications are not expected to bring revenue growth at the moment, the company has already advised a long term plan to support these new business sectors.

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