Innolux Seeks to Expand in the Luxury Car Market by 2023

Night lighting cabin of luxury Mercedes S Class finished with real wood and leather and a huge multimedia screen MBUX. Source: Adobe Stock

Taiwanese display panel manufacturer Innolux has been expanding to the automotive display market. 

President of Innolux, James Yang, stated that the company will adopt mini LED backlighting to target luxury car display panels, aiming to take a double-digit market share of the luxury car display panel market in 2023. 

Automobile sales to grow as well as the automotive display panel

Innolux is the world’s third-largest flat-panel maker, after Samsung and LG, and has developed partnerships with carmakers including Tesla, BWM, Ford, General Motor, and Chinese leading automakers. Having a possibility to surpass Japanese JDI, Innolux may become the leading automotive display panel manufacturer.

Being tied to automobile sales, the automotive display panel is also seeing growth. The global luxury car market saw a plunge last year due to the pandemic and was valued at around US$ 410 billion. It is predicted to rebound and reach US$ 566 billion in 2026, with a compound annual growth rate of roughly 5% between 2021-2026, according to the Modor Intelligence forecast.

James Yang commented that connected cars will bring on large business opportunities. Installation of integrated cluster display and center console CID will become the trend for future luxury vehicles. 

Innolux is adopting mini LED backlighting for the luxury car segment

Innolux currently installs LCD automotive display panels but is gradually adopting mini LED backlighting as an alternative, which is under the testing stage. Small volume shipments of mini LED backlighting automotive displays are likely to begin next year, according to people familiar with the matter. 

The reason to adopt mini LED backlighting instead of OLED is due to permanent screen burn-ins. Innolux has proposed to use mini LED for display panels in automobiles since 2017, said Vice President Chin-Lung Ting.

Future premium vehicle trends

Luxury and premium car models in the future will be equipped with immersive experiences, smart cockpits, and integrated digital information that will push for the added value of the automotive display panel segment. Additional growth momentum will be brought along beside the TV and smartphone segments, as stated by James Yang.

Innolux had been focusing on automation and artificial intelligence technologies to upgrade current production lines since the pandemic hit. While Innolux does not have plans to follow automakers in setting up plants in the US, James indicated Vietnam may be a good location for investment.

 

Sources: anue (in Mandarin)

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