CAIHONG DISPLAY DEVICES CO.(SH:600707) Jing Ji Guan Cha Wang·2025-08-15 03:49Core Viewpoint - The ongoing legal battles initiated by Corning Inc. against leading Chinese display companies represent a significant confrontation in the global display industry, particularly focusing on the glass substrate market, which is crucial for the entire display supply chain [2][4][10]. Group 1: Industry Overview - China's display panel output accounts for approximately half of the global market, with over 70% of shipments originating from the country [3]. - The Chinese display industry has invested over 1.5 trillion yuan, establishing more than 60 production lines with an annual capacity of about 250 million square meters, making it the largest display industry hub globally [3][16]. - Despite this growth, around 90% of the glass substrate market is dominated by Corning and two Japanese companies, with only Rainbow Optoelectronics recently breaking through the 8.5-generation production line technology [3][11]. Group 2: Legal Actions and Investigations - Corning has initiated multiple "337 investigations" against Chinese companies, including Rainbow Optoelectronics, TCL Huaxing, and others, alleging patent and trade secret infringements related to glass substrates [5][6][10]. - The "337 investigation" process is critical, involving evidence disclosure and hearings, which can significantly impact the outcomes of these legal disputes [2][8]. - As of mid-August 2025, Corning has filed a total of 13 lawsuits against Rainbow Optoelectronics across various regions, including the U.S., EU, and India, focusing on patent and intellectual property issues [2][7]. Group 3: Market Dynamics and Implications - The glass substrate is a foundational material in the display supply chain, and the ongoing patent disputes are pivotal for the future of the Chinese display industry [4][14]. - Corning's dominance in the glass substrate market, holding over 50% market share, poses a significant threat to Chinese companies that are beginning to gain market share [10][19]. - The legal actions taken by Corning are seen as attempts to limit the production capacity of Chinese firms, thereby maintaining its market position and preventing price reductions in glass substrates [11][12]. Group 4: Future Outlook - The outcome of these legal battles will have profound implications for the Chinese display industry's ability to secure its supply chain and maintain competitive pricing [11][12]. - Experts emphasize the need for China to develop its own intellectual property in the glass substrate sector to ensure the industry's long-term sustainability and independence [17][18].