LCD panel maker Innolux Corp (群創) is accelerating its expansion into the higher-margin public information display sector in an effort to reduce earnings volatility.
“Public displays deliver higher gross margins than large-sized TV panels,” Devin Lin (林威廷), a sales manager at Innolux’s public information display division, said in a statement on Thursday.
Innolux is set to start mass production of public information displays in the middle of next year, it said.
The company is playing catch-up with local rival AU Optronics Corp (AUO, 友達光電), which ventured into this market more than 10 years ago.
AUO in October said it is the world’s second-largest producer of public information displays, with a market share of 30 percent.
It expects annual shipments to outpace industry growth and expand by 50 percent year-on-year this year.
The market for public information displays is highly customized: Mainstream products range from 40 inches to 65 inches, with 55-inch and 65-inch models gaining the fastest traction, Innolux said.
It added that 65-inch displays with touch features have become the mainstay in Chinese, European and US commercial markets, and have been widely adopted by schools in eastern Europe.
Smaller public information displays, measuring 12 inches to 22 inches, have also shown strong growth momentum, as schools replace traditional billboards with LCDs and retailers use them in lieu of paper price tags or conventional signage, Innolux said.
Small-sized public information displays are growing at an annual rate of 100,000 units, the firm added.
Overall, the global public information display market grew at a double-digit percentage annually from 2015 to this year, statistics compiled by IHS Markit showed.
IHS attributed the increase to robust demand for video walls, interactive displays and price tags, supported by government stimulus measures.
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