Touch panel maker EELY and small- to medium-size TFT-LCD panel and module maker Giantplus Technology are seeing increased orders from Samsung Electronics, and expect the orders to remain strong until the fourth quarter of 2014.
The orders are for smartphone and tablet applications as part of Samsung's efforts to bump up its competition in the China market where local vendors are continuing to gain strength.
Samsung hopes its products can further enter the China market in the second half of 2014, as China's telecom operators currently have reduced or stopped subsidies for purchases of China-based vendors' products. Many market observers believe such subsidies were a major factor in pushing up China handset sales over the past year.
China's supply chain, meanwhile, will help provide Samsung quicker time to market as well as save on costs ,so that pricing may remain lower to compete with China vendors.
EELY in particular is seeing one of the biggest surges in orders and is reportedly expanding production facilities along with hiring up to as many 2,000 new workers to meet the demand. |