AU Optronics Corp (友達光電), the world's third-largest maker of liquid-crystal-display panels, yesterday said it signed an agreement with Korean rival Samsung Electronics Co to share patents for flat-panel manufacturing technologies in a bid to strengthen competitiveness.
Under the agreement, the two companies would share licenses including patents in the area of thin-film-transistor-liquid-crystal-displays (TFT-LCD) and organic light-emitting diodes (OLED), especially concerning the technology for LCD TV applications, AU Optronics said in a statement released yesterday.
"AU Optronics and Samsung expect the agreement to bolster the development and deployment of TFT-LCD technology in LCD TVs, providing a new catalyst to strengthen the competitiveness of both companies," they said in the statement.
AU Optronics declined to reveal the value of the transaction and the number of patents involved. The deal takes effect immediately.
TFT-LCD technology is now the most widely used technology among a wide range of flat panel manufacturing technologies for consumer electronics, while OLED technology is mostly used in making smaller-sized screens, such as 2 inch ones, panels for mobile phones and digital music players.
Samsung is the world's biggest OLED panel maker with 26.4 percent market share in terms of shipments as of the third quarter of last year, according to market researcher DisplaySearch. The company is also the world's No.2 maker of TFT-LCD panels.
AU Optronics postponed the mass production of its own OLED panels for mobile phones to the first quarter, according to the research house.
"It is rare for OLED panel makers to share patents. The patent sharing agreement is quite a positive sign for the industry," said DisplaySearch analyst Jane Hsu (徐玉娟).
As OLED panel makers made much greater efforts than TFT-LCD makers in building up intellectual property rights, it would not be easy for manufacturers to avoid patent infringement, Hsu said.
AU Optronics said it now owns over 1,700 patents worldwide, with over 3,300 patents pending.
To extend its patent coverage, AU Optronics purchased 170 patents related to TFT-LCD manufacturing technology from International Business Machines Corp of the US last year.
The company is not alone in moving to strengthen its intellectual property position amid strong competition. Rival Chi Mei Optoelectronics Corp (奇美電子) also said it signed contracts with Japan's Hitachi Display Ltd on cross-authorization of some 1,000 LCD patents in June.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
Taiwan is open to joining a global liquefied natural gas (LNG) program if one is created, but on the condition that countries provide delivery even in a scenario where there is a conflict with China, an energy department official said yesterday. While Taiwan’s priority is to have enough LNG at home, the nation is open to exploring potential strategic reserves in other countries such as Japan or South Korea, Energy Administration Deputy Director-General Chen Chung-hsien (陳崇憲) said. While the LNG market does not have a global reserve for emergencies like that of oil, the concept has been raised a few times —
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
RSS