CAIHONG DISPLAY DEVICES CO.(SH:600707) Hu Xiu·2025-08-15 23:22Core Viewpoint - Corning Inc. has initiated a series of legal actions, including a "337 investigation," against several leading Chinese companies in the new display industry, indicating a significant escalation in the competition between U.S. and Chinese firms in the display supply chain [1][2][6][14]. Group 1: Overview of the Investigation and Lawsuits - The "337 investigation" by Corning is a critical phase in the legal battle, with evidence submission deadlines set by the U.S. International Trade Commission (ITC) [1][10]. - Corning has filed a total of 13 lawsuits against Chinese companies, including Rainbow Technology, TCL Huaxing Optoelectronics, and Huike, across multiple jurisdictions such as the U.S., EU, and India [2][9]. - The investigation targets the entire display industry chain, from materials to end products, highlighting the comprehensive nature of the legal actions [9][21]. Group 2: Market Dynamics and Implications - China's display panel production accounts for approximately 50% of the global market, with over 70% of shipments originating from China [4][19]. - Corning, along with two Japanese companies, dominates about 90% of the glass substrate market, posing a significant challenge for Chinese firms like Rainbow Technology, which has recently achieved a 10% market share [4][15]. - The legal actions are seen as an attempt by Corning to maintain its market position and limit the production capacity of Chinese companies, which have begun to break the technological monopoly in the glass substrate market [14][16]. Group 3: Technological and Competitive Landscape - The glass substrate is a crucial material in the display supply chain, akin to silicon wafers in the semiconductor industry, making the ongoing legal battles pivotal for the future of the Chinese display industry [5][15]. - Both Corning and Rainbow Technology utilize the "overflow method" for glass substrate production, which is essential for achieving the required precision and quality [21]. - The competition is not only about market share but also revolves around intellectual property rights, with Corning leveraging its patents to create barriers for Chinese competitors [22][23]. Group 4: Future Outlook and Industry Response - The outcome of these legal battles could significantly impact the Chinese display industry's ability to secure its supply chain and maintain competitive pricing, as evidenced by the drop in glass substrate prices due to increased local production [16][17]. - Experts emphasize the need for China to develop its own intellectual property in the glass substrate sector to ensure long-term sustainability and independence in the display industry [25][29]. - The ongoing disputes reflect broader trends in global trade and technology competition, with potential implications for other sectors as well [30][31].