I am not sure they can without significant government help. But packaging is become a big issue in semiconductors, and Panel-Level is a future trend. I believe there’s a high chance that SMIC or JCET may take a stake in an LCD player like BOE (or vice versa), or some other type of JV/cooperation.
Great stuff Tim. Would be interested to know what you think of the Chinese LCD giants: are they going to be able to pivot into higher margin businesses, like AUO and Innolux? Or is this a classic example of why Taiwan is a better bet for investors because the ecosystem with TSMC at its core is so much more adaptable?
I am not sure they can without significant government help. But packaging is become a big issue in semiconductors, and Panel-Level is a future trend. I believe there’s a high chance that SMIC or JCET may take a stake in an LCD player like BOE (or vice versa), or some other type of JV/cooperation.
Great stuff Tim. Would be interested to know what you think of the Chinese LCD giants: are they going to be able to pivot into higher margin businesses, like AUO and Innolux? Or is this a classic example of why Taiwan is a better bet for investors because the ecosystem with TSMC at its core is so much more adaptable?