What They Say
A report in Digitimes highlighted that the withdrawal of the Koreans from making LCDs is leading to a re-alignment of the relationship between Korean and Taiwanese makers. According to the report, Samsung is now a big client of AUO rather than being a ‘competitor’. The report also said that Mediatek would supply 37% of the application processors that Samsung handsets will use in 2021.
What We Think
I used to say that it was interesting to see the Taiwanese do to the Koreans what the Koreans had done to the Japanese in the display business. Now China has done to the Taiwanese what they did to the Koreans. And so it goes… India next?
The article suggests that Korea and Taiwan industries might combine in a bigger alliance, but it seems unlikely to me, although there are some similarities in the countries. However, there is fierce competition in semiconductors between the two. (BR)
