Innolux Tops Global TFT-LCD Market for Auto, Medical and Aerospace Applications

Innolux Display Corp., Taiwan's largest supplier of thin film transistor-liquid crystal display (TFT-LCD) panels, topped global counterparts in supplying panels for automotive, medical and aerospace applications, according to company president J.C. Wang.

Wang said that Innolux is the largest supplier of automotive displays to German luxury-car maker BMW, with annual deliveries of more than 10 million units. The firm's products have also traveled into space on the National Aeronautics and Space Administration (NASA)'s space shuttles.

Industry sources point out that the increasingly mature and competitive LCD TV and information technology (IT) panel markets have been driving Taiwanese panel suppliers to more aggressively develop high value-added application products. The automotive panel segment is attractive for its high market growth and stable demand. The medical and specialty markets bring high profit margins and unit prices, though volume is limited. Shipments of these new types of panel products have been contributing more profits to local panel makers, they add.

In 2013, Innolux outstripped former market leaders Japan Display and Sharp to become the leading automotive TFT-LCD panel supplier, according to NPD DisplaySearch. The Taiwanese panel maker garnered 23% of the automotive TFT-LCD market last year, followed by Japan Display (21%) and Sharp (18%).

"Like the more mature PC and TV panels, the automotive TFT-LCD panel has evolved from a customized item to a commodity that is easier to mass produce, and Taiwan TFT LCD makers now have the edge in pricing and production capacity," said Hiroshi Hayase, vice president of small/medium displays for NPD DisplaySearch. "Taiwan is also a leading supplier to the growing Chinese automotive market, which has helped Innolux grow."

As electric and hybrid vehicles rise in popularity and on-screen navigation becomes standard on more new cars, the demand for multifunctional automotive TFT-LCD monitors continues to grow, NPD DisplaySearch said. Total automotive TFT-LCD shipments have nearly tripled in volume over the past five years. Demand for automotive TFT LCD screens is forecast to exceed 100 million units by 2017.

Wang claimed that after long-term cultivation, Innolux has tapped into many international automakers' supply chains, including most major European car makers. The firm now supplies mainly automotive panels for center-console displays, including panel sizes up to 10 inches. Innolux reportedly is also the supplier of in-vehicle displays to BMW's new car models X3 and X5, as well as battery electric vehicle (BEV) model i3.

The president said that his company currently delivers more than 10 million automotive panels to global automotive before-market, and more than 10 million to the aftermarket. Though the product certification process for automotive panels is stricter, Wang said, orders from customer in the industry are more stable and longer-term. In conjunction with the increasing number of displays on modern cars, the president said, Innolux would continue to develop more such products.

Wang also claimed that Innolux, after long-term business development, now owns the most comprehensive product line for medical applications. Currently, the company offers panels with resolutions from 1.3 million to 10 million pixels; and it now commands a 30% to 40% share in the international market.

Innolux is also the global leader in aerospace-application panels, Wang claimed, supplying quality panels to major customers such as Boeing, Airbus, and NASA. Many famous aircraft models, such as the B-737 and B-747 jetliners, F-16, F-18, and F-15 jet fighters, and even the Apache combat helicopters now adopt Innolux's display panels.