To research the development background and the overall industry overview of panel manufacturing in Taiwan and Asia, this research will review literature systematically, and sort out the development situation and market environment of panel manufacturing industry right now. We will concentrate on researching the investment in China’s market by Taiwan''s TFT-LCD panel manufacturer of the Taiwan''s photoelectric industry. Then we will make a brief introduction about background and status of the manufacturers in this research, and investigate the manufacturers business model in industry with market’s trading acts.
I will use individual analysis in both AUO’s and CMO’s business model in the TFT-LCD market by using both AUO’s and CMO’s companies data as a basis in Taiwan’s photovoltaic industry. And I will compare the effect and direction of their investment and evaluate their impact and give advice.
After studies we can find out AUO mainly used indirect form of equity investments the local manufacturers in mainland China to investment China’s panel module market. CMO always take third place reinvestment to investment panel manufacturing projects in China, after numerous outside third continuous investment. This third area outside investment, can be said to give full play to the spirit of the transfer price.
This illustrates that AUO tend to take steady and technology-oriented way of doing business. AUO not only committed to the consolidation of the existing market share, and made a business and profit level, but also pursuit Taiwan''s technology leadership in costs to research and development. On the other hand,CMO continuously use strategic alliances and acquisitions to expand its market landscape and technology after merging domestic producers. CMO take flexible application of third place reinvestment for avoiding policy and investment risks, and then efficient access to the mainland China marketplace, and get a good development.
As for the Triangular strategic of United States, Japan, and Taiwan manufacturers jointly resisting two panel modules manufacturers in South Korea, it is a helpless result by tripartite. Although United States manufacturers had brand and market, they did not have its own Panel manufacturers as production and supply chain in economies of scale. Japan’s manufacturers had most competitive advantage in the process of Panel technology, but there are problems of production insufficient capacity and small market size. Taiwan’s manufacturers have reached capacity advantage of economies of scale and a certain level of Panel, but there is a lack of brand and the most advanced Panel technology as a key competitive tool. Therefore, the United States, Japan, Taiwan need to collaborate, use their respective advantages to make up a deficiency by the surplus of mutual support, and to fight the ever-strong Panel modules manufacturers in South Korea.