Zhou Xianying, chairman of Taiwan touch panel manufacturer Shangyecheng, said at a shareholders' meeting on May 27 that the plan to cooperate with customers to set up factories overseas is expected to be determined this year, and the exact location, scale, and partners will be announced at the appropriate time.

Zhou Xianying revealed that in the past, production capacity was mainly in mainland China, but considering business opportunities, there have been evaluations to set up new production lines in Southeast Asia in the past 2 to 3 years. The overall electronics industry transfer is mainly in Southeast Asia. Vietnam, Thailand, and India are all locations that Shangyecheng considers to set up factories, but it is mainly to meet customer needs.

Zhou Xianying admitted that LCD touch-related products account for more than 80% of the company's revenue, but the technology used in many products has shifted to OLED, so the company must make a major transformation and gradually add new applications. Zhou Xianying said, "Liquid crystal displays (LCD) should not be replaced before 2030, so there is no need to worry too much."

Shangyecheng pointed out that last year, automotive products accounted for less than 5% of the total revenue, fingerprint recognition products accounted for less than 10%, and touch display-related products accounted for more than 80%. It is expected that in 2024, the company's automotive revenue will account for 5%, fingerprint recognition products will exceed 10%, and touch displays will account for about 80%. In addition, the company is optimistic about the application of optical coating in virtual reality (VR) and augmented reality (AR), but it is expected to be released in 2026 and 2027.

Regarding whether OLED technology will squeeze the LCD panel market, Zhou Xianying emphasized that OLED has high requirements for resolution, and more and more customers are introducing ultrasonic fingerprint recognition functions in high-end products. At present, some customers have introduced ultrasonic fingerprint recognition, and there will be more next year, and even mid-range OLED products will introduce ultrasonic fingerprint recognition functions in the future.

Regarding Sharp's closure of the 10th generation panel production line in Sakai City, Japan, Yichuang pointed out that because the production line is only for TV panels, it has no impact on Yichuang.