Thanks to the accurate sales strategy of the TV Business Unit (TVBU), our profit reached a new high over the past decade in 2017, and the highest profit was found in the large panel market. While unfortunately oversupply will become a fact in 2018, maintaining technological advantages and healthy finance will be the effective policy for Innolux to achieve sustainable development.
To extricate Innolux from the red ocean (dumping) competition of panels and avoid the company from marginalization, we are committed to transforming Innolux into a smart manufacturing platform with system integration capacity, and the new Innolux model: reinforcing our panel business, resetting our system business, and integrating our business for new forays was initiated in 2017. Through the huge outlet, we have launched the “Made by Innolux” full-machine shipping policy. While full-TV shipping presents a learning curve, we believe that by revamping the Innolux model and opening new outlets, we can achieve full-machine manufacture through vertical integration and contribute to profit-making, in order to regain market dominance.
In response to the rise of Industry 4.0 and the 8K+5G ecosphere of the group, it is our responsibility to re-equip the industry internet of the panel business. While panel manufacture requires over 300 processes and lots of domain know-how, we promote total factory automation and create big data containing a large amount of AI contents and applicability to achieve the Panels + Industrial Internet of Things goal by the end of 2019.
Faced with the one-sided technological pressure from South Korea, we have launched the prototype of the world’s first AM MiniLED auto panel that surpasses the picture quality and resolution of OLED and QLED and can be used on flexible PCBs to initiate the next glorious era of TFT manufacture. In addition, our 100” 4K2K LCD TV Module won the Taiwan Excellence Gold Award in 2017 while our 100” High Brightness PID Module won the Taiwan Excellence Silver Award in 2018. By continuously implementing optimal strategic deployment in brand new applications, enhancing value chain integration, developing products of high value-added, and maintaining product competitiveness in the price and specification terms, we aim to provide customers with more value-added solutions and services.
We spare no effort to promote and implement sustainable development by following the 17 sustainable development goals (SDGs) launched by the United Nations. Apart from addressing resource risks and environmental issues with respect to the SDG spirit, we reduce the impacts of pollution and comply with the circular economy concept. In 2017 we activated the iFM platform to achieve real-time surveillance of our water conservation, GHG emissions, waste reduction, material flow cost accounting (MFCA), chemicals recovery, and collaborative carbon reduction with suppliers, in order to take precautionary actions and surpass international standard for a low-carbon environment.
People are essential to sustainable development. By promoting the ‘three-ward looking’ (forward looking, upward looking, and outward looking) talent cultivation policy for global deployment, we organize internship programs with domestic universities of science and technology and establish the Innolux Academy for seamless education-to-employment connection and raise the recruitment rate to 86%. In 2017 we further introduced the ‘business practice degree’ in Europe to offer practice and training opportunities in leading European universities. To foster top high-tech talent, we have established the Startup Incubator to develop technology talents in collaboration with leading universities and research institutions.
As a bellwether of disability employment, we hire people with disabilities beyond the statutory quota in Taiwan, Ningbo, Foshan, and Nanjing plants in China, making Innolux a model disability employer in the high-tech industry.
2017 also marked the baseline year of our full-machine output. In face with the severe challenges in 2018, our Industry Internet of Things norms are spreading like wildfire. We will continue to set standards for the industry ahead of competitors and lead the market trends to achieve co-prosperity and win-win with all stakeholders, fulfill our corporate social responsibility, and leverage our nimble yet stable operating model to demonstrate Innolux’s positive value.