What They Say
Digitimes reports that Hannstar has focused on making more low power reflective display panels this year. Target applications are smart retailing, education, transportation, fitness, and environmental protection as the firm expects the segment to enjoy CAGR of 12% between 2021 and 2026. At the moment, one of its G5 fabs is making TFT LCDs at 140K substrates per month, while the second has 80K substrate capacity and makes touch panels.
The report said that Hannstar expects a 50% gross margin in Q2 2021 and made net profit of $109.3 million in Q1.
What We Think
I wonder if Hannstar’s long-suffering shareholders ever expected to see these numbers? Hannstar has long been the perfect exemplar of what David Barnes used to call the ‘fungibility’ of the LCD industry (my database says he spoke about it in 2011 at the Display Week Business Conference). That is to say, LCD makers can relatively easily change what they make to take advantage of good pricing or margins. That has limited the opportunity to build profitable segments. If a segment starts to get very positive, everybody switches to make products for that segment. (BR)
