The tl;dr version: Huawei may have taken a beating in the US the past two years, but it seems to be back with a vengeance. Automotive keeps looking like the most promising growth opportunity for displays in the next five years. Chalk this one up to supporting evidence.
JNTC, a South Korean company that makes curved cover glass, expects to recover from two years of operating losses due to the revival of Huawei’s smartphone business and resumption of supply to Samsung. With the recovery of Huawei’s smartphone business and the resumption of supply to Samsung, JNTC is optimistic about its prospects for the future.
JNTC supplies curved cover glass to Chinese panel makers BOE and Vision Oaks, which are used in Huawei’s smartphones. Huawei had taken a hit during the pandemic, particularly as it faced accusations of collecting data for the Chinese government. As Huawei’s smartphone business declined due to the US government’s sanctions, JNTC’s sales also suffered.
JNTC’s glass business is 60-80% of its total revenues, of which Huawei accounts for 40-50%. In 2021, JNTC has also secured over 700 billion won ($546 million) in order backlog for automotive display cover glass by 2028. As vehicle displays become increasingly sophisticated, the demand for ergonomic design from the driver’s seat to the front passenger’s seat is also increasing. JNTC is well-positioned to benefit from this trend, with sales of cover glass for vehicles expected to reach 55 billion won ($43 million) this year.
