Automotive LEDs became the driving force of LED deliveries in the third quarter of this year. As more new cars are poised to be launched, suppliers are ramping up more actively. LED testing and packaging companies like Brightek Optoelectronic, Everlight and Edison Opto are all optimistic that the demand for automotive LEDs will stay on the growing track in the second half of 2023.

According to Andrew Ho, general manager of Corning Display Technologies Taiwan, precision glass plays a crucial role in emerging display technologies. In his opinion, LCDs will continue to dominate the market thanks to mini LED technology. With OLEDs seeing cost improvements, and the rapid emergence of micro LEDs, these three technologies are expected to be at the forefront in the display market.

InnoCare Optoelectronics Corporation (InnoCare) is working to grow its automated X-ray inspection (AXI) business. This includes expanding outside of the healthcare industry and finding more applications for the components and modules it produces. InnoCare General Manager Eric Lee estimated that shipments of AXI will exceed ten units this year and double in 2024.

After a rocky start that resulted in financial loss in the first quarter, Global Lighting Technologies (GLT), a leader in light guide plate technology (LGP), reported a turn-around in the second quarter. Chairman Lee Mang-Shiang expects similar performance in the third quarter as the second, and despite the low visibility, better revenue could be possible in the fourth quarter.

US-based specialty glass supplier Corning reportedly plans to invest KRW 2 trillion (US$1.5 billion) to set up a bendable glass manufacturing plant in South Korea, targeting immense business opportunities from mobile phones, IT and automotive applications.

Leading optical film manufacturer Wah Hong Industrial has announced its intent to expand its factory space, a move signaling the company's aggressive push into next-generation technologies. The company has been approved to move into Ciaotou Science Park, even as it evaluates alternative locations for expansion. The company hopes to start construction in 2-3 years.

After experiencing a half-year surge, LCD TV panel prices continue to show an uptick in late August. However, as the end of the third quarter approaches, industry insiders anticipate that the price rally will taper off in September. However, specific panel sizes may continue to see price increments.

PlayNitride Chairman Charles Li said that the next 2-3 years will be pivotal for micro-LED development and that the company's goal is to push microLED into next-generation displays.

Apple, Nvidia, and Pixar have recently formed alliance for OpenUSD (AOUSD), which aims to drive open standards for 3D tools and data. This strategic move has been interpreted as a potential indicator that the trajectory of 3D technology's development is poised to become mainstream in the coming years, laying a solid groundwork for the evolution of XR. Chairman Tom Liang of Jorjin Technologies has astutely observed that the cross between AR and VR could occur within a span of 3 to 5 years, potentially triggering a transformative revolution in human-machine interaction.

After a cancellation in 2022 due to the pandemic, OPTO Taiwan makes its grand return in 2023 with more booths than ever. Event organizer Photonics Industry & Technology Development Association (PIDA), stated that the exhibition will be from October 25–27. There will be four main themes: "compound semiconductors," "precision optics," "optical inspection," and "silicon photonics & laser." It's estimated that there will be around 100 participating exhibitors, with the total number of booths approaching 150.

E Ink Holdings (EIH), a provider of e-paper solutions, recently reduced its 2023 revenue forecast, due partly to the slow progress of electronic shelf label (ESL) upgrades and conversions.

Tape chip-on-film (COF) substrate suppliers including Chipbond Technology and JMC Electronics have seen a modest increase in demand and are expected to see their operations improve in the second half of this year, according to sources at display driver IC (DDI) backend companies.

Taiwan's leading time-lapse camera manufacturer, Brinno, has set its sights on shipping image-processing modules to US military-industrial clients. Starting from November, the delivery volume will be raised to 1,000 units, said company President Chen Shih-Che.

E Ink, a major e-paper manufacturer recently made the third revision to its annual revenue estimate with the number going from a double-digit on-year growth to a flat or a single-digit decline.

Amid escalating US-China tensions, compaines in both Taiwan and China are eyeing investment opportunities in South and Southeast Asia. Taiwan's AUO is expanding into Vietnam, while Innolux is partnering with Vedanta in India for an LCD factory. China's major panel factories like BOE, TCL China Star Optoelectronics Technology (TCL CSOT), and HSK are investing in the region. These moves reflect a strategic shift in the display industry, positioning the region as an emerging essential production base for electronic products such as smartphones and laptops. Investment in the area is appealing to the suppliers given the population dividends, tariff incentives, subsidies, and lower labor costs.

Taiwan-based display driver IC company Himax Technologies saw its sales and gross margin decrease in the second quarter of 2023. The company said demand from automotive electronics has been recovering, expected to bring its gross margin back to over 30%. However, its sales will likely keep declining slightly in the third quarter due to the sluggish consumer electronics market.

Novatek Microelectronics, a major player among display driver IC (DDI) companies in Taiwan, reported impressive Q2 results, approaching the higher end of prior financial forecasts. Growth was driven by increasing demands across applications, the initiation of new product mass production, optimized product portfolios, and reduced costs, which pushed the gross profit margin beyond the forecasted range.

Ennostar Group's Q2 2023 revenue and profit demonstrated a sequential improvement, though unused capacity continued to weigh on operations. The gradual recovery of the consumer market led to these gains, but the lingering excess capacity remains a concern. Ennostar Chairman, Paul Peng, highlighted that while H2 this year will likely outperform H1, the growth magnitude might not be significant. He added that optimizing unused capacity and enhancing profitability are top priorities for Ennostar.

Glass substrates may see tight supply starting from the third quarter of 2023 till the second half of next year, with major Japanese vendors axing their production despite signs of demand rebounding, according to industry sources.

China has become the primary production base for e-paper modules, accounting for over 90% of the global shipments. As the demand for electronic paper rises, firms in China are positioning themselves to leverage the boom, solidifying the nation's dominance in this tech sector.

Coretronic projects a 10–20% rise in quarterly shipments for its two major product lines in the upcoming peak Q3, compared to Q2. However, due to the sluggish economy, both optical and energy-saving product shipments are expected to decline by about 10 percent.

With Korean panel makers continuing to devote efforts to developing automotive OLED technologies with significant achievements, Taiwan-based display driver IC (DDI) makers will likely benefit from related technology advancements in the long term, according to industry sources.

Amidst the lackluster shipments of smartphones, foldable phones have continued to grow and have become a market focus. Taiwan-based U-Best Innovative has been developing Hard Coat (HC) Films for many years. It made strong pushes in the Chinese market after the pandemic, successfully entering the foldable smartphone supply chain and breaking Japan and Korea's long-time oligopoly in the sector. Mass production is expected to begin in August.

Major panel makers in Taiwan and Korea are scheduled to hold their respective investor conferences in the coming days, providing an outlook for the displays market, where demand is improving.

Foxconn Electronics (Hon Hai Precision Industry) chairman Young Liu reportedly made another visit to Sharp in Japan last week, following his previous 3-day visit in early July, and stayed for the whole week to get a hold of Sharp's current status, according to sources from the upstream supply chain.