While OLED panels are seeing increasing use in smartphones and have been adopted for TVs, the technology is unlikely to replace TFT-LCD panels and therefore makers of light guide plates for LCD panels will not see major impacts, said chairman Lee Man-hsiang of light guide plate maker Global Lighting Technologies (GLT) at a May 26 investors conference.
Production cost for OLED panels is relatively high due to low yield rates, Lee said, adding OLED TVs will take up less than 10% of global demand for TVs.
In addition to light guide plates used in IT and TV panels, GLT has developed light guide plates for use in smart wearable devices' displays, automotive displays and lighting products, Lee indicated.
For smart wearable devices, Fitbit, Tom Tom and Garmin are major clients of GLT.
GLT is constructing a factory with total floor space of 37,628 square meters on a site of 5.14 hectares in central Taiwan and production will begin in third-quarter 2016. The factory can house 10 production lines, with five to come into operation initially.
GLT posted consolidated revenues of NT$1.315 billion (US$40.5 million), gross margin of 26.73%, net operating profit of NT$173 million, net profit of NT$173 million and net EPS of NT$1.33 for first-quarter 2016.
