“We hope the new business will add value to AUO,” Chen Lai-juh (陳來助), president of AUO, the world’s No. 3 liquid-crystal-display (LCD) panel market, told investors.
“The e-paper and e-reader market as a whole is much bigger than you would imagine,” Chen said.
Shipments of e-readers are expected to grow at a compound annual growth rate of 78.2 percent to 19.76 million units over the next five years to 2013, a conservative forecast by MIC showed. This year, shipments could triple to 3.05 million units, from last year’s 1.1 million units, the researcher said.
AUO, which assembles e-paper modules, last month began shipping products to customers including Qisda, which is scheduled to launch BenQ brand e-readers by the end of this year.
Meeting growing demandwill be a difficult task.
“Quickly boosting capacity to match customer demand is challenging,” Sipix president Andrew Tseng (曾旭平) said.
Sipix intends to increase its monthly capacity nine-fold to 3 million 6-inch units by the end of next year, from 300,000 units at present.
To resolve glass capacity limitations, PVI signed a memorandum of understanding with Chi Mei Optoelectronics Corp (奇美電子) to supply glasses, which are used to buffer electronic ink and integrated circuits.
Taiwanese electronics makers will be natural partners for companies seeking to enter the e-reader market.
Hon Hai Precision Industries Inc (鴻海精密) is reportedly making e-readers for Amazon.com and Sony.
A little more than three years ago, Netronix Inc (振曜) started making e-readers at its factories, but a high technological barrier did not make the new business its major revenue source — at least not until it formed a partnership with PVI two years ago.
Targeting bookstore chains and telecom operators, Netronix now makes half of its revenues from e-readers.
A growing number of companies are preparing to enter the e-reader market, including notebook computer makers such as Asustek Computer Inc (華碩電腦), which made the world’s first netbook, as well as Inventec Inc (英業達), the nation’s No. 4 contract notebook maker.
Inventec is reported to have received orders for e-readers from the US’ biggest bookstore chain, Barnes & Noble.
“In Taiwan, a full e-reader supply chain is emerging, allowing Taiwanese companies to take a central position in the business,” Po said.
Also See: Google sparks e-book battle with Kindle
RSS