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Backlight unit (BLU) maker Radiant Opto-Electronics, viewing that increasing adoption of OLED panels will pose threat to the BLU industry, has adopted a 4-prong strategy to cope with the challenge, according to company chairman and CEO Wang Pen-jan.
The strategy looks to extend development and production to automotive display panels, step into development and assembly of LCD TVs, technological cooperation with China-based LCD panel makers and development of light guide plates for innovative applications, Wang said.
Radiant’s automotive display panels are being validated, and it is setting up production lines and preparing for trial production, Wang noted. Once obtaining carmakers’ validation, the automotive display panels have a product life of about five years and are more profitable than handset panels, Wang said. Automotive display panels come in diverse models in small volumes and need after-sale services, and Radiant expects the product line to begin contributing revenues in 2018.
Radiant has entered the LCD TV manufacturing sector in cooperation with China-based Xiaomi Technology, Wang noted. Xiaomi originally planned to launch LCD TVs but in order to better compete against China-based LCD TV vendors it wanted to adopt a different business model by having Radiant serve as its TV ODM, Wang explained. Radiant expects two other such clients, with shipments to begin in 2018.
The company saw 44% of first-quarter 2017 consolidated revenues come from South Korea, 42% from Taiwan, 9% from Japan, and 5% from China. Radiant hopes to hike the revenue proportion for China through cooperation with China-based LCD panel makers, Wang said. In efforts to shift from panels used in entry-level and mid-range devices to those used in mid-range and high-end devices, some China-based TFT-LCD panel makers have sought technological cooperation with Radiant, Wang noted. For China-based panel makers, the shift is necessary to maintain profitability. Radiant has discussed models of cooperation with them, Wang said.
Demand for light guide plates for customized display panels has emerged and this will bring business opportunities for Radiant, Wang indicated. Radiant is developing innovative application of light guide plates, Wang noted.
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