{"id":24235,"date":"2024-05-10T09:30:48","date_gmt":"2024-05-10T01:30:48","guid":{"rendered":"https:\/\/www.tejwin.com\/?post_type=insight&#038;p=24235"},"modified":"2024-07-22T16:27:34","modified_gmt":"2024-07-22T08:27:34","slug":"touch-panel-industry-ways-to-end-decline-in-profit-venturing-into-new-business","status":"publish","type":"insight","link":"https:\/\/www.tejwin.com\/en\/insight\/touch-panel-industry-ways-to-end-decline-in-profit-venturing-into-new-business\/","title":{"rendered":"Touch Panel Industry, ways to end decline in profit \u2014 Venturing into new business"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large is-resized\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.tejwin.com\/wp-content\/uploads\/1-7-1024x576.jpg\" alt=\"\" class=\"wp-image-24236\" style=\"width:840px;height:auto\" srcset=\"https:\/\/www.tejwin.com\/wp-content\/uploads\/1-7-1024x576.jpg 1024w, https:\/\/www.tejwin.com\/wp-content\/uploads\/1-7-300x169.jpg 300w, https:\/\/www.tejwin.com\/wp-content\/uploads\/1-7-150x84.jpg 150w, https:\/\/www.tejwin.com\/wp-content\/uploads\/1-7-768x432.jpg 768w, https:\/\/www.tejwin.com\/wp-content\/uploads\/1-7-1536x864.jpg 1536w, https:\/\/www.tejwin.com\/wp-content\/uploads\/1-7.jpg 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>In 2023, under inflation, high interest rates, and excessive inventory level, the demand for consumer electronics products weakened, resulting in a sustained decline in the panel industry. The touch panel sector also faced profit erosion due to competition. Consequently, touch panel manufacturers have been actively diversifying into new business areas, despite the impact still remains relatively low at present. This article will briefly outline Taiwan\u2019s touch panel industry\u2019s new business plans, progress, and the industry outlook for the first half of 2024.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69fdfb4f657c3\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"ez-toc-cssicon\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69fdfb4f657c3\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tejwin.com\/en\/insight\/touch-panel-industry-ways-to-end-decline-in-profit-venturing-into-new-business\/#What_is_the_Touch_Panel_Industry\" >What is the Touch Panel Industry?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tejwin.com\/en\/insight\/touch-panel-industry-ways-to-end-decline-in-profit-venturing-into-new-business\/#Crisis_for_Touch_Panel_Industry_in_Recent_Years\" >Crisis for Touch Panel Industry in Recent Years<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tejwin.com\/en\/insight\/touch-panel-industry-ways-to-end-decline-in-profit-venturing-into-new-business\/#Explore_New_Field_%E2%80%94_A_solution_for_Touch_Panel\" >Explore New Field \u2014 A solution for Touch Panel?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tejwin.com\/en\/insight\/touch-panel-industry-ways-to-end-decline-in-profit-venturing-into-new-business\/#Smartphone\" >Smartphone<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tejwin.com\/en\/insight\/touch-panel-industry-ways-to-end-decline-in-profit-venturing-into-new-business\/#Computers_and_Tablets\" >Computers and Tablets<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tejwin.com\/en\/insight\/touch-panel-industry-ways-to-end-decline-in-profit-venturing-into-new-business\/#Touch_Panel_Industry_%E2%80%94_Facing_the_erosion_of_core_business\" >Touch Panel Industry \u2014 Facing the erosion of core business<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tejwin.com\/en\/insight\/touch-panel-industry-ways-to-end-decline-in-profit-venturing-into-new-business\/#Explore_new_business_%E2%80%94_Automotive_Electronics_and_Biometrics\" >Explore new business \u2014 Automotive Electronics and Biometrics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tejwin.com\/en\/insight\/touch-panel-industry-ways-to-end-decline-in-profit-venturing-into-new-business\/#Set_foot_in_other_industry_%E2%80%94_3D_Printing_and_Energy\" >Set foot in other industry \u2014 3D Printing and Energy&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tejwin.com\/en\/insight\/touch-panel-industry-ways-to-end-decline-in-profit-venturing-into-new-business\/#A_painkiller_to_ease_decline_%E2%80%94_Electronic_Paper\" >A painkiller to ease decline \u2014 Electronic Paper<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tejwin.com\/en\/insight\/touch-panel-industry-ways-to-end-decline-in-profit-venturing-into-new-business\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Touch_Panel_Industry\"><\/span><strong>What is the Touch Panel Industry?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Depending on the sensing method, touch panels can be categorized into various types, including resistive, projected capacitive, surface capacitive, surface acoustic wave, infrared, and optical. Additionally, based on the location of the touch sensor, they can be further divided into external (add-on) and embedded (integrated) types.<\/p>\n\n\n\n<p>Add-on touch panels (ATP) are supplied by specialized touch panel manufacturers, while embedded touch panels are primarily produced by panel manufacturers. since embedded touch panels integrate touch sensors within the panel structure, reducing the module thickness and weight but also improving light transmittance.<\/p>\n\n\n\n<p>According to the GIS-KY annual report, embedded touch technology accounts for over 50% of the market share. However, in the early stages, due to technical issues, integrating touch modules into the panel made them susceptible to signal interference, resulting in lower yield rates. But with technological advancements, embedded touch panels offer more advantages compared to add-on touch modules, and their adoption rate is gradually increasing. Currently, embedded touch has become the mainstream application for smartphones and is also making inroads into larger-sized display panels. Additionally, touch panel manufacturers are diversifying into other areas as their touch business continues to face competition from display manufacturers. Furthermore, their operations are closely tied to economic conditions, prompting them to actively explore new fields to mitigate the impact of economic fluctuations on revenue.<\/p>\n\n\n\n<p>According to the Industry Chain Information Platform of TWSE, the supply chain for the touch panel industry can be divided into upstream, midstream, and downstream segments:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Upstream:  Includes essential raw materials such as glass substrates, ITO targets, Optical Clear Adhesive (OCA), control ICs, flexible boards, and PET films. Currently, materials like PET films and ITO targets are primarily supplied by Japanese or American companies due to related technical issues, with limited supply from Taiwanese manufacturers.<\/li>\n\n\n\n<li>Midstream:  Involves the production of touch sensors and touch panels, which can be categorized as embedded or add-on types. Embedded touch panels vary based on sensor placement and display technology. They include:\n<ul class=\"wp-block-list\">\n<li>LCD In-cell: The touch sensor is integrated into the TFT array.<\/li>\n\n\n\n<li>LCD On-cell: The touch sensor is placed on the opposite side of the color filter glass.<\/li>\n\n\n\n<li>AMOLED On-cell: Currently, only AMOLED On-cell panels exist where the touch sensor is placed on the AMOLED package cover\/glass. \n<ul class=\"wp-block-list\">\n<li>High-end AMOLED On-cell panels are supplied by South Korean manufacturers, while LCD In-cell panels, mainly for mid-to-low-end applications, are provided by Taiwanese manufacturers. Competition in this area is intensifying due to continuous capacity expansion by Chinese manufacturers.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Downstream:  Refers to various end applications, including smartphones, automotive panels, ATMs, and more.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.tejwin.com\/wp-content\/uploads\/7-1-1024x576.jpg\" alt=\"\" class=\"wp-image-24242\" srcset=\"https:\/\/www.tejwin.com\/wp-content\/uploads\/7-1-1024x576.jpg 1024w, https:\/\/www.tejwin.com\/wp-content\/uploads\/7-1-300x169.jpg 300w, https:\/\/www.tejwin.com\/wp-content\/uploads\/7-1-150x84.jpg 150w, https:\/\/www.tejwin.com\/wp-content\/uploads\/7-1-768x432.jpg 768w, https:\/\/www.tejwin.com\/wp-content\/uploads\/7-1-1536x864.jpg 1536w, https:\/\/www.tejwin.com\/wp-content\/uploads\/7-1.jpg 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center has-text-color has-link-color wp-elements-5481baa1591598b0a5373aa74091f6c1\" style=\"color:#f2be00\"><a href=\"https:\/\/www.tejwin.com\/en\/insight-category\/market-research\" class=\"ek-link\"><strong>Click here to have more insights on different Taiwanese industries!<\/strong><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Crisis_for_Touch_Panel_Industry_in_Recent_Years\"><\/span><strong>Crisis for Touch Panel Industry in Recent Years<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The touch panel industry experienced a significant decline in 2023, primarily due to the inventory adjustment in the industry cycle and overall sluggish demand in consumer electronics. The major players affected by this downturn were GIS-KY and TPK-KY, both prominent touch panel manufacturers. With Apple, a major customer, experiencing a decline in overall shipments, these two companies faced substantial challenges. However, amidst the unfavorable environment, YOUNGFAST (3622.TW) and Transtouch (3623.TW) managed to achieve growth. YOUNGFAST\u2019s revenue composition reveals that touch module revenue accounted for only 24%, while wire and cable revenue constituted 76%. Despite the decline in touch module revenue, YOUNGFAST offset the impact through domestic energy policies and increased power facility projects, resulting in a modest 6% revenue growth. On the other hand, Transtouch specializes in niche touch modules, benefiting from increased demand in aviation applications for new and upgraded aircraft, leading to a slight 3% revenue growth.<\/p>\n\n\n\n<figure class=\"wp-block-table caption-align-center\"><table><tbody><tr><td rowspan=\"2\">ID \/ <br>Company name <\/td><td colspan=\"3\">Revenue (Amount in billion)<\/td><\/tr><tr><td>2023                 <\/td><td>2022          <\/td><td>YOY%\/YOY dollar change<\/td><\/tr><tr><td>6456 GIS-KY<\/td><td>71.3<\/td><td>125.5<\/td><td>-42%\/-54.1<\/td><\/tr><tr><td>3673 TPK-KY<\/td><td>69.9<\/td><td>97.2<\/td><td>-28%\/-27.3<\/td><\/tr><tr><td>3622 YOUNGFAST<\/td><td>1.6<\/td><td>1.6<\/td><td>+6%\/0.0<\/td><\/tr><tr><td>3049 HannsTouch<\/td><td>1.3<\/td><td>2.4<\/td><td>-45%\/-1.1<\/td><\/tr><tr><td>4729 MILDEX<\/td><td>1.1<\/td><td>1.4<\/td><td>-20%\/-0.3<\/td><\/tr><tr><td>5220 HIGGSTEC<\/td><td>0.8<\/td><td>1.0<\/td><td>-19%\/-0.2<\/td><\/tr><tr><td>3623 Transtouch<\/td><td>0.4<\/td><td>0.4<\/td><td>+3%\/0.0<\/td><\/tr><tr><td>Total<\/td><td>146.4<\/td><td>229.3<\/td><td>-36%\/-82.9<\/td><\/tr><\/tbody><\/table><figcaption class=\"wp-element-caption\">Revenue for Touch Panel Manufacturer in Taiwan&nbsp; Source\uff1aTEJ<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Explore_New_Field_%E2%80%94_A_solution_for_Touch_Panel\"><\/span><strong>Explore New Field \u2014 A solution for Touch Panel?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As we all know, GIS-KY (6456.TW) and TPK-KY (3673.TW) have long been the primary suppliers of touch panels for Apple devices, generating a stable revenue. According to 23Q4 financial report, it\u2019s evident that both companies\u2019 revenue shares in mobile touch panels are relatively low, hovering around 10%. Therefore, their main focus lies in supplying touch panels for laptops and tablets. Specifically, GIS-KY\u2019s combined revenue share in tablets and laptops reaches 88%, while TPK-KY\u2019s share in medium-sized panels (7-inch to 11-inch and 11-inch to 16-inch) also reaches 83%. Although revenue from mobile devices isn\u2019t significant to both companies, smartphones play an essential role in modern society as a necessity and undergo rapid iterations. Compared to tablets and computers, the shorter lifecycle of smartphones and the trend of frequent upgrades directly reflect the overall recovery of the consumer electronics industry. Hence, this article will discuss smartphones separately from tablets and computers focusing on Apple products.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.tejwin.com\/wp-content\/uploads\/8-2-1024x576.jpg\" alt=\"\" class=\"wp-image-24244\" srcset=\"https:\/\/www.tejwin.com\/wp-content\/uploads\/8-2-1024x576.jpg 1024w, https:\/\/www.tejwin.com\/wp-content\/uploads\/8-2-300x169.jpg 300w, https:\/\/www.tejwin.com\/wp-content\/uploads\/8-2-150x84.jpg 150w, https:\/\/www.tejwin.com\/wp-content\/uploads\/8-2-768x432.jpg 768w, https:\/\/www.tejwin.com\/wp-content\/uploads\/8-2-1536x864.jpg 1536w, https:\/\/www.tejwin.com\/wp-content\/uploads\/8-2.jpg 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Smartphone\"><\/span>Smartphone<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Based on IDC\u2019s market research, global smartphone shipments grew by 7.8% in 2024 Q1, despite the challenging overall economic outlook. This marks the third consecutive quarter of shipment growth, indicating a successful recovery. However, from Apple\u2019s perspective, the outlook might not be as optimistic. IPhone shipments fell to only 50 million units in 2024 Q1, declining by 9.6% compared to the same period in 2023. Although Apple\u2019s market share remains second to Samsung, Xiaomi is closely trailing with a remarkable 33% growth in shipments during the same period, suggesting that iPhones may not be benefiting significantly from the economic recovery.<\/p>\n\n\n\n<p>Another point of interest is whether the Chinese market is showing signs of bottoming out. Over the past two years, China\u2019s policies have dampened demand and hindered production, making it the slowest in recovering of the world\u2019s three major consumer markets. According to Counterpoint\u2019s market research, China\u2019s smartphone sales market grew by 1.5% in 2024 Q1 compared to the same period last year, achieving a 4.6% growth from the previous quarter. The trend of gradual recovery is emerging, but IPhone\u2019s performance still remains concerning. Its market share declined from 19.7% in 2023 Q1 to 15.7% in 2024 Q1. Although GIS-KY and TPK-KY are not primarily focused on the smartphone market, their connection to the Apple ecosystem still leads to certain impacts.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Computers_and_Tablets\"><\/span>Computers and Tablets<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>During TSMC\u2019s Q1 2024 earnings call, CEO C. C. Wei: \u201cIn terms of end applications, smartphones are growing steadily, while PCs are recovering more slowly. IoT and consumer electronics are still adjusting, and the automotive sector is also going through inventory destocking.\u201d This suggests that PC growth performance won\u2019t be as robust as that of smartphones. According to IDC\u2019s research, PC shipments finally ended their two-year decline in 2024 Q1, growing by 1.5% compared to the same period last year. However, it\u2019s essential to note that 2023 Q1 also marked the historical lowest point for PC shipments. Overall, PC shipments have roughly returned to pre-pandemic levels, with growth seen in the Americas and Europe. However, deflationary pressures in China have directly impacted the global PC market. Despite being the largest consumer of desktop PCs, weak demand in China led to another quarter of declines in global desktop shipments. As for MacBook\u2019s performance, it benefited from the low base effect, showing 14.6% growth. However, future growth is expected to slow down, and Apple\u2019s AI efforts are currently under scrutiny, potentially putting it at a disadvantage compared to other brands.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.tejwin.com\/wp-content\/uploads\/9-1-1024x576.jpg\" alt=\"\" class=\"wp-image-24246\" srcset=\"https:\/\/www.tejwin.com\/wp-content\/uploads\/9-1-1024x576.jpg 1024w, https:\/\/www.tejwin.com\/wp-content\/uploads\/9-1-300x169.jpg 300w, https:\/\/www.tejwin.com\/wp-content\/uploads\/9-1-150x84.jpg 150w, https:\/\/www.tejwin.com\/wp-content\/uploads\/9-1-768x432.jpg 768w, https:\/\/www.tejwin.com\/wp-content\/uploads\/9-1-1536x864.jpg 1536w, https:\/\/www.tejwin.com\/wp-content\/uploads\/9-1.jpg 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>For tablets, unlike smartphones and computers, they lack the essential nature. When the economy is weak and inflation is high, budget allocations for tablets are often the first to be cut. According to IDC, tablet shipments for the entire year of 2023 declined by 20% compared to 2022, reaching the lowest annual volume since 2011. Apple, as the leader in the tablet market, shipped 12.5 million units but experienced a 15.1% year-over-year decline. Unlike previous years, Apple didn\u2019t launch new models during Q3, which typically provides an uplift in the second half of the year. Additionally, the emergence of a new competitor, LENS (300433.SZ), further challenges GIS-KY and TPK-KY as a key supplier for Apple. To avoid over-reliance on a single product, various manufacturers have been preparing to adjust their product portfolios.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Touch_Panel_Industry_%E2%80%94_Facing_the_erosion_of_core_business\"><\/span><strong>Touch Panel Industry \u2014 Facing the erosion of core business<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To avoid being too dependent on Apple\u2019s supply chain, GIS-KY and TPK-KY have chosen to actively transform. Particularly for GIS-KY, the terrifying decline in gross profit margin is evident. In the past, GIS-KY could maintain a gross profit margin of 8-9%, but in 2023, it dwindled to a mere 2.56%. Operating profit has also turned negative. TPK-KY faced a similar situation in 2023 Q4, prompting them to make changes to their product portfolio.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.tejwin.com\/wp-content\/uploads\/10-2-1024x576.jpg\" alt=\"\" class=\"wp-image-24248\" srcset=\"https:\/\/www.tejwin.com\/wp-content\/uploads\/10-2-1024x576.jpg 1024w, https:\/\/www.tejwin.com\/wp-content\/uploads\/10-2-300x169.jpg 300w, https:\/\/www.tejwin.com\/wp-content\/uploads\/10-2-150x84.jpg 150w, https:\/\/www.tejwin.com\/wp-content\/uploads\/10-2-768x432.jpg 768w, https:\/\/www.tejwin.com\/wp-content\/uploads\/10-2-1536x864.jpg 1536w, https:\/\/www.tejwin.com\/wp-content\/uploads\/10-2.jpg 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Explore_new_business_%E2%80%94_Automotive_Electronics_and_Biometrics\"><\/span>Explore new business \u2014 Automotive Electronics and Biometrics<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In addition to the original touch module business, GIS-KY is actively expanding into automotive and fingerprint recognition products. Their automotive products include monitors, central console touchscreens, and B-pillar facial recognition systems. Some of these products are expected to be integrated into electric vehicles under Foxconn brand, which has not yet officially launched electric cars, so the benefits remain to be observed.<\/p>\n\n\n\n<p>As for fingerprint recognition products, they are primarily used for technologies such as ultrasonic under-screen fingerprint recognition and side-mounted capacitive fingerprint recognition. With the increasing reliance on smartphones, biometric identification technologies play a crucial role in ensuring information security and facilitating online transaction authentication. The demand for fingerprint recognition applications is expected to grow steadily over the coming years. According to the company\u2019s statements during their financial results briefing, revenue contributions from automotive-related products were approximately 5% in 2023, and it is anticipated that this share will exceed 10% in the next three to five years. Meanwhile, fingerprint recognition accounted for 5% to 10% of revenue in 2023, with an estimated increase beyond 10% in 2024.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Set_foot_in_other_industry_%E2%80%94_3D_Printing_and_Energy\"><\/span>Set foot in other industry \u2014 3D Printing and Energy&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Apart from their touch panel business, TPK-KY is also involved in 3D printing, LiDAR, and energy-related ventures.&nbsp;<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>3D-printing: TPK-KY primarily produces essential components for consumer products using 3D printing technology. These components find applications in sports equipment, industrial parts, and medical devices. Currently, this segment is still in its early development stage.<\/li>\n\n\n\n<li>LiDAR (Light Detection and Ranging): LiDAR technology is mainly used for distance measurement. It offers advantages such as high precision and recognition capabilities. Unlike other sensors, LiDAR is not affected by ambient lighting conditions. It can detect information about surrounding obstacles\u2019 shapes, distances, and more, allowing the creation of 3D geographical models. TPK-KY announced in April 2023 that they are the exclusive supplier of LiDAR products for Luminar\u2019s new Mercedes-Benz vehicles. Luminar has a diverse customer base, and there are expectations that they will expand into other vehicle models. However, it\u2019s important to note that TPK-KY\u2019s LiDAR products are primarily for assembly, and they adjust their existing product lines to earn contract manufacturing fees. The actual benefits are still under observation.<\/li>\n\n\n\n<li>Energy-Related Ventures: In July 2023, TPK-KY partnered with Hongde (6873.TW) Energy to establish a company called \u201cStellar Energy Technology Inc.\u201d focused on energy storage systems and electric vehicle charging stations. By combining Hongde Energy\u2019s expertise in power generation and storage with TPK-KY\u2019s manufacturing capabilities, they aim to capture the growing markets for energy storage and electric vehicle charging infrastructure. While both energy storage and electric vehicles are future trends, the company is currently in the initial setup and planning phase, requiring further observation. According to statements made during the company\u2019s earnings call, they estimate that non-touch-panel-related businesses will contribute around 5% of revenue in 2024, increasing to 10% by 2025.<\/li>\n<\/ol>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.tejwin.com\/wp-content\/uploads\/11-2-1024x576.jpg\" alt=\"\" class=\"wp-image-24250\" srcset=\"https:\/\/www.tejwin.com\/wp-content\/uploads\/11-2-1024x576.jpg 1024w, https:\/\/www.tejwin.com\/wp-content\/uploads\/11-2-300x169.jpg 300w, https:\/\/www.tejwin.com\/wp-content\/uploads\/11-2-150x84.jpg 150w, https:\/\/www.tejwin.com\/wp-content\/uploads\/11-2-768x432.jpg 768w, https:\/\/www.tejwin.com\/wp-content\/uploads\/11-2-1536x864.jpg 1536w, https:\/\/www.tejwin.com\/wp-content\/uploads\/11-2.jpg 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A_painkiller_to_ease_decline_%E2%80%94_Electronic_Paper\"><\/span>A painkiller to ease decline \u2014 Electronic Paper<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Besides the dominant players in the touch panel industry, other small Taiwanese manufacturers have also begun experimenting with different transformations to reduce industry risks. HannsTouch (3049) primarily produces touch products with active matrix organic light-emitting diode (AMOLED) displays. To align with the company\u2019s long-term development strategy, they have started laying out products related to driver backplanes and are targeting niche markets. Electronic labels utilize e-paper display technology, offering advantages such as low power consumption, wide viewing angles, and readability. When combined with wireless control systems, retailers can instantly update label content on shelves, making it convenient for business operations. The company\u2019s electronic label revenue accounted for 36% in the first three quarters of 2023, a 2.2% growth compared to the same period last year. This increase is mainly due to a significant decline in touch-related revenue. As the electronic label market continues to expand, revenue is expected to keep growing.<\/p>\n\n\n\n<p>Additionally, HannsTouch has invested in the hospitality industry through its subsidiary, Glorystone Inc.. They have also partnered with 2 other companies to establish \u201cStand Cafebar\u201d, venturing into the restaurant, hospitality, and catering business. The revenue share from these ventures accounted for approximately 14% in the first three quarters of 2023.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The touch module industry has faced erosion of its core business and revenue fluctuations due to economic cycles. As a result, various manufacturers have actively diversified into new ventures. However, the contribution from these new ventures remains small, and their impact is still in the early stages. Consequently, their ability to withstand economic volatility remains insufficient, leading to a significant decline of 36% in 2023. Looking ahead to the first half of 2024, while the overall economy has not yet shown clear signs of recovery, the lower base year in 2023 suggests that revenue may stabilize or experience modest growth. In the meantime, it\u2019s essential to continue monitoring touch module manufacturers\u2019 strategies and plans in exploring new industries.<\/p>\n\n\n\n<p class=\"has-text-align-center has-text-color has-link-color wp-elements-21c31a2b930c978e4eff22b3bc38b37a\" style=\"color:#f2be00\"><a href=\"https:\/\/www.tejwin.com\/en\/databank-solution\/fundamental-data\/\" class=\"ek-link\"><strong><span style=\"text-decoration: underline;\" class=\"ek-underline\"><span style=\"background-color:#ffffff\" class=\"has-inline-background\">Check what TEJ dataset provide<\/span><\/span><\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In 2023, under inflation, high interest rates, and excessive inventory level, the demand for consumer electronics products weakened, resulting in a sustained decline in the panel industry. The touch panel sector also faced profit erosion due to competition. Consequently, touch panel manufacturers have been actively diversifying into new business areas, despite the impact still remains relatively low at present. This article will briefly outline Taiwan\u2019s touch panel industry\u2019s new business plans, progress, and the industry outlook for the first half of 2024.<\/p>\n","protected":false},"featured_media":24237,"template":"","tags":[2921,2946,3199],"insight-category":[],"class_list":["post-24235","insight","type-insight","status-publish","has-post-thumbnail","hentry","tag-electronic-stocks","tag-industry-analysis","tag-tej-database"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/insight\/24235","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/insight"}],"about":[{"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/types\/insight"}],"version-history":[{"count":2,"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/insight\/24235\/revisions"}],"predecessor-version":[{"id":25494,"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/insight\/24235\/revisions\/25494"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/media\/24237"}],"wp:attachment":[{"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/media?parent=24235"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/tags?post=24235"},{"taxonomy":"insight-category","embeddable":true,"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/insight-category?post=24235"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}