What Display Daily thinks: If there is one market that can compete with China on labor costs, manufacturing costs, and hence, pricing, it is most probably India. If you are looking to get out of the LCD business or to divest yourself of its competitive pricing, and low margins, then you can look at the Indian market.
There are major infrastructure and engineering challenges that have hampered India’s previous attempts to become a major player in semiconductor and display manufacturing. So while the ambition is there, it will likely take considerable time and sustained government support for India to reach its goals.
As for Innolux, the company has faced competitive pressures in recent years, but remains one of the leading LCD panel makers globally. An investment from Vedanta could provide a capital infusion to maintain R&D and expand capacity, but wholesale divestment of core businesses seems unlikely.
Vedanta Still Looking for Display Fab in India, Talking to Innolux
Indian conglomerate Vedanta Group is in discussions with Taiwan-based LCD panel maker Innolux for a potential investment, according to reports out of India. The talks are focused on Vedanta acquiring a minority stake in Innolux, though the deal size and terms have yet to be finalized.
Innolux is a leading manufacturer of thin-film transistor liquid crystal display (TFT-LCD) panels and the company has been looking for partnerships and investments to expand its next-generation display technology development and production capabilities. For Vedanta, which has interests spanning metals, mining, oil and gas, a stake in Innolux would mark the company’s realization of its ambitions to make a major foray into the display technology manufacturing space. Vedanta sees displays as a key growth market, especially with the rise of connected devices and autonomous vehicles.
The potential deal comes at a time when technology companies globally have been faced with a supply crunch for components such as semiconductor chips and display panels. Vedanta’s investment could help provide Innolux with fresh capital for enhancing its manufacturing capacity. Representatives for Vedanta and Innolux declined to comment on speculation. The deal negotiations are still in the preliminary stages and there is no certainty they will lead to a transaction, according to reports.
