Japan's Toppan Printing quits panel production and purchases small and medium-sized LCD panels from Taiwanese companies

Toppan Printing of Japan recently announced its withdrawal from the LCD panel production business and decided to transfer the small and medium-sized LCD business of its subsidiary Toppan Technical Image (TTI) to Giantplus Technology in Taiwan, China. This strategic adjustment reflects the changes in the global panel industry competition landscape and the trend of enterprises focusing on high value-added fields.

Toppan Printing originally produced small and medium-sized LCD panels through TTI, mainly used in automotive, industrial control and medical equipment. Due to the intensified competition in the panel industry (especially the capacity expansion of Chinese mainland manufacturers), Japanese companies are facing cost pressure and choose to divest low-profit businesses. Giantplus Technology is a professional manufacturer of small and medium-sized panels in Taiwan. This acquisition includes technology, equipment and customer resources, which is expected to strengthen its supply capacity in niche markets (such as automotive and industrial control).

In recent years, Japanese companies such as JDI (Japan Display) and Sharp have successively withdrawn from or reduced their LCD business and turned to high-tech fields such as OLED and Micro LED. Toppan's move is in line with the logic of Japan's manufacturing industry's transformation to high value-added. Taiwanese manufacturers took advantage of the withdrawal of Japanese companies from the LCD display field to acquire Japanese display technology and business, and in the future they will still gain market dividends and layout the global market. Through mergers and acquisitions, Lingju integrates the market segments, avoids price wars with Chinese mainland manufacturers in large-size panels, and focuses on the small and medium-sized fields with stable demand but high barriers.

Subsequent impact

Supply chain restructuring: Former TTI customers may turn to Lingju or other Taiwanese manufacturers (such as AUO and Innolux), and the stability of the supply chain needs to be verified in the short term. Technology transfer risk: How the technology of Japanese companies can be integrated with Lingju's existing production lines is the key, and attention should be paid to whether the yield and delivery capabilities are affected.

Industry concentration increases: The small and medium-sized panel market is further concentrated in mainland China (Tianma, BOE) and Taiwan, and Japan only retains some high-end material supply roles.

Filling the market gap: If Lingju's integration is not smooth, Chinese mainland manufacturers can seize automotive and industrial control orders with cost advantages.

Technical cooperation space: After Toppan withdraws, some of its technical patents may be open for licensing, and Chinese mainland companies may have the opportunity to obtain related technologies. Japan's Toppan Printing has withdrawn from the production of small and medium-sized LCD panels. However, Toppan will switch to Lingju for procurement, which is expected to increase performance. Lingju is optimistic about the outlook for 2025.

Summary

Toppan's withdrawal from LCD production is another example of Japanese companies adjusting their manufacturing strategies, and GiantLink's takeover reflects the flexible layout of Taiwanese manufacturers in the market segment. The global panel industry continues to reshuffle, and future competition will focus more on technological differentiation and application scenario development. Chinese mainland manufacturers need to be wary of the risk of overcapacity in the low-end market, while accelerating their penetration into high-end, high-profit areas.