Shenzhen Smart Display Technology Co.,Ltd

There are more enterprises and products that reflect new quality productivity. Among the exhibitors in the first phase of this Canton Fair, there are more than 1,700 new enterprises. There are more than 4,200 enterprises with titles such as specialized and new small giants, single champions in manufacturing, and national high-tech, with 11,181 booths, accounting for 37.6% and 44.9% of the total number of enterprises and booths in the first phase of the export exhibition, respectively, an increase of 39.8% and 35.5% over the previous session. There are 3,600 enterprises related to themes such as "new three things", digital technology, and intelligent manufacturing, and a batch of humanoid robots, smart devices, brain-computer interface products are favored by overseas buyers. Trade promotion activities are more abundant. Since the current Canton Fair, 432 trade promotion activities have been held, an increase of 19.3% over the previous session. Among them, there are activities that lead the market and interpret development trends. Such as seminars on improving the level of trade digitalization, cross-border e-commerce compliance seminars, consumer electronics and other industry forums. There are also activities focusing on transactions and service supply and procurement docking, such as new product launches, first exhibitions, and trade bridge activities. In addition, in view of the characteristics of industry development, information exchange was strengthened, and more than 10 cutting-edge and trend-oriented industry reports were released. The integration of online and offline is higher. This session launched the Canton Fair App, further optimized 18 functions of the online platform, and provided exhibitors with more convenient and efficient multi-scenario applications and mobile services. For example, buyers can obtain all the information of exhibitors and exhibits by scanning the QR code on site, and can follow the online booth of the enterprise with one click, eliminating the trouble of collecting information. At the same time, exhibitors and visitors can also follow each other through the App, and can also communicate and negotiate conveniently through mobile devices such as mobile phones after the meeting. Buyers are more satisfied. From the first two days, buyers of this session came to the meeting enthusiastically. Many buyers said that it is more convenient to apply for visas to China, faster to apply for Canton Fair entry documents, more convenient to pay inside and outside the hall, and more innovative products at the Canton Fair. From the scene, the negotiation and transaction between exhibitors and visitors is in full swing, and it is expected that positive results will be achieved by the end of this period. He Yadong said that the Ministry of Commerce will continue to provide various services, create a good environment, and go all out to ensure the success of this Canton Fair.

In 2024, the LED display market has entered a new stage of development with new expectations and confidence. Against the backdrop of the gradual recovery of the global economy, what specific changes is this market experiencing? What new trends and characteristics are being shown? It is worth paying attention to. Overseas markets have become an important "engine" for performance growth. The LED display market continues to adjust and grow during the economic cycle. According to TrendForce's "2025 Global LED Display Market Outlook and Price Cost Analysis Report", China's market demand is sluggish, government budget cuts, social investment intentions are weakening, and LED display prices are fiercely competitive. It is expected that China's LED display market output value will decline in 2024. This means that although China's overall market demand may be affected, companies can make up for this gap by exploring overseas markets. In terms of overseas markets, TrendForce expects that the demand for LED display markets in Europe and the United States will remain stable in 2024. At the same time, the demand for LED displays in the Asian market, especially in the Middle East and Southeast Asia, continues to rise rapidly, and is expected to become the best performing region in 2024. Other markets such as Africa, Latin America and Oceania are also growing steadily. Such a market structure highlights the development potential of the overseas LED display market and brings new opportunities for LED display companies. In the first half of this year, the overseas market has become an important driving force for the performance growth of LED display manufacturers. Specifically, Leyard's overseas revenue in the first half of 2024 reached 1.291 billion yuan, a year-on-year increase of 12.76%. Among them, Asia, Africa and Latin America performed particularly well, with revenue reaching 462 million yuan, a year-on-year increase of 50.74%; Zhouming Technology's performance was also remarkable, with overseas revenue reaching 2.171 billion yuan in the first half of this year, a year-on-year increase of 19.34%; Absen's overseas market revenue in the first half of this year was about 1.4 billion yuan, a year-on-year increase of about 24%, of which North America's growth rate was about 32%, while Europe and Asia, Africa and Latin America both exceeded 20%. The company signed orders for about 1.5 billion yuan in overseas markets, a year-on-year increase of 18%. Driven by overseas demand, Absen's LED display sales increased by about 28% year-on-year to 177,000 square meters; Leman Optoelectronics' international business revenue reached 510 million yuan in the first half of this year, a year-on-year increase of 34.8%, accounting for 78% of total revenue, a record high; Lianjian Optoelectronics' international business also showed a positive development trend, with revenue of 174 million yuan, accounting for 59.31% of total revenue, showing that the international market occupies an important position in its business.

Recently, the industry has reported that TSMC has decided to purchase another old plant of Innolux in Nankai, mainly to meet the CoWoS demand driven by AI. The industry estimates that after the purchase of the plant, it can be put into production as early as 2026. The monthly production capacity of CoWoS in that year has the opportunity to reach 150,000 to 160,000 pieces, which means that the production capacity has doubled for three consecutive years. Innolux has been actively transforming into the semiconductor field. Chairman Hong Jinyang once emphasized that he hopes to start technical cooperation with semiconductor manufacturers by selling factories. Recently, the 5.5-generation production line of Fab4 (Factory 4) in Nankai was sold to TSMC (2330). Regarding the market rumor that Innolux will sell Fab3) or Fab5 (both 5-generation LCD factories) to TSMC in the near future, Innolux said that it will not respond to market comments. It is understood that when TSMC was evaluating its process and plants, it was most interested in Innolux's Fab6 (Fab 6) located in the Tree Valley Park, and the Fab's 6th generation line specifications best met TSMC's future FOPLP needs. However, the property rights of Innolux's Fab 6 still belonged to Chi Mei Industrial, which made the transaction more complicated. Therefore, TSMC's evaluation target was further transferred to Innolux's Fab 3 or Fab 5. Industry insiders analyzed that TSMC had previously purchased Innolux's Fab 4, and Innolux's Fab 3 and Fab 5 in Nanke had a geographical relationship with Fab 4, and the property rights were simple. TSMC's new plant is very likely to be one of Fab 3 or Fab 5. Based on the previous sale of Fab 4 to TSMC for a settlement amount of NT$17.14 billion and the recognition of NT$14.7 billion in disposal profits, if Innolux sells a plant with a similar scale and generation to Fab 4 this time, it will have considerable disposal profits to be recognized in this year's financial statements. The building area of ​​Innolux's 4 plants is 317,444.93 square meters. Innolux is deploying FOPLP technology. According to the current plan, Chip-first (chip-first process) will be mass-produced at the end of this year and will start to contribute revenue in the first quarter of next year; RDL (rewiring layer) is still in the verification stage and is expected to be mass-produced in 1-2 years; TGV packaging (glass through-via) will be mass-produced in about 2-3 years. Innolux said that the sale of Innolux's plants to TSMC will help the company's operations to turn losses into profits this year, and with the accelerated demand for semiconductor companies to expand their plants, Innolux also has other plants with sales potential and is expected to obtain more funds. The production capacity of Chip-first is mainly for IDM plants for automotive and PMIC products. It is expected that when the production capacity is fully loaded, the revenue can grow by mid-single digits; RDL and TGV focus on glass processing processes, and the applications are mainly in high-end fields such as AI/HPC. Potential customers include OSAT plants, and it is expected that 2026 and 2027 will be the time for flowering and bearing fruit.

1. Basic information: Exhibition name: The 15th China (International) Commercial Display System Industry Leaders Summit (CBDS) & the 6th Shenzhen (International) Smart Display System Industry Application Expo (ISVE) Exhibition time: August 27 (Tuesday) 09:00-17:00August 28 (Wednesday) 09:00-17:00August 29 (Thursday) 09:00-16:30 Exhibition location: Shenzhen Convention and Exhibition Center (Futian) Hall 3 2. Highlights: Leaders Summit | Summit Dialogue | Special Conference | Exhibition Technology Innovation | Major New Products | Award Ceremony | Commercial Display Night • Keynote Speech + Smart Retail, Smart City , education interaction and other sub-sectors; • Exhibition + conference integration, immersive procurement, in-depth discussion of the development prospects of smart display; • Party and government leaders, corporate executives, and college professors, with high-quality topics and a lot of dry goods, one-stop to understand the latest developments of smart display; • Domestic and foreign, upstream and downstream companies in the supply chain jointly participate to discuss breaking through "involution" and high-quality development; • Professional buyers gather, and enjoy gifts for progress; • Meritorious enterprise/innovation achievement selection, VIP exchange dinner gathering, encourage technological innovation and market development, and establish valuable connections and cooperation opportunities. 3. Free visit: Real-name pre-registration is required in advance before entering the museum for quick entry