Chen Hong Optoelectronics, a leader in the touch module industry, first announced in November 2012 that its Dahong will expand its new 4.5-generation plant in Taichung, and then announced at the end of December that it will cooperate with Hexin for the front-end production capacity of OGS, plus yesterday announced the addition of 5.5 On behalf of the new plant, several specific investment and cooperation plans have been adopted several times in just three months to actively demonstrate the determination of capacity expansion. WitsView, a research division of TrendForce, a global market research organization, said that in addition to showing optimistic expectations for the future market of OGS touch modules, Chen Hong's high-profile expansion of production capacity will closely affect the follow-up development of touch notebook computers.
WitsView said that Chen Hong has always been regarded as the most representative manufacturer of glass touch modules, but in addition to the proud processing and bonding capabilities of the rear stage module, the company still has a considerable proportion of product resources. On the G / G architecture touch module, in contrast, OGS technology, which has recently become a popular fried chicken, Chen Hong's own investment seems relatively limited. Most of its front-end touch sensor demand depends on the supply of advanced technology within the group. Chen Hong announced that he is investing in a 5.5-generation production line, showing that product portfolio changes are taking place, and also revealing his determination to overpower OGS technology.
According to a survey by WitsView, most of the current supply resources of OGS touch modules for notebook computers are in the hands of Chen Hong. Taking the fourth quarter of 2012 as an example, the touch-installation rate of global notebook computer shipments is about 4 to 5% Among them, Chen Hong accounted for more than 80% of the touch module. Although the oligopolistic supply chain shows that Chen Hong has a product competitiveness that is significantly ahead of other competitors, the limited production capacity has also led to the fact that many notebook computer brands cannot fully meet the demand for OGS touch modules, resulting in a shortage of supply.
Qiu Yubin, Research Associate at WitsView, said that Chen Hong ’s investment in the 5.5-generation production line was on the one hand to diversify supply risks, and on the one hand, in order to find lower-cost touch solutions, many notebook computer brands began to shift suppliers to film-type touch A module factory, or a panel factory capable of providing both a panel and a touch module Total SoluTIon, has become a potential threat to divide Chen's territory in the touch notebook market. Through the improvement of production capacity, Chen Hong can not only meet the needs of existing customers, but also spare no effort to expand business for new customers and maintain more than half of the market share in the notebook computer touch module market. In addition, once the mainstream OGS supply is sufficient, it can also slow down the penetration of other different touch module technologies, including G / F / F, into the notebook computer market.
Due to the poor integration of Windows 8 in touch operation, tight OGS supply, and the high price of OGS touch modules, it is difficult to quickly reduce the price of stylus pens to stimulate consumers' purchase intentions, so WitsView conservatively views 2013 stylus The penetration rate of electricity is estimated to be only 7-8%. However, Qiu Yubin believes that Chen Hong's active expansion will help solve the problem of tight OGS production capacity. Once the supply increases, the shortage problem will slow down, and at the same time, the price of the touch module will fall, so that there is an opportunity to solve the above in one breath. OGS is in short supply and expensive, two key issues. All in all, in the second half of this year, the penetration rate of stylus notebooks is still on the spot or skyrocketing. Chenhong ’s production capacity dynamics and price strategy will be extremely important.
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