Although CDW Holding Limited’s LCD Backlight Unit (BLU) production was suspended in April and May 2022 due to COVID-19 restrictions in Shanghai, total delivery volume of LCD BLU for automotive digital instrument panels in 2022 saw a growth to a higher level compared to 2021. For 2022, delivery volume of LCD BLU for automotive models enjoyed a year-on-year increase of 4.53% compared to 2021.
In addition, 52% of CDW’s LCD BLU total sales and delivery volume in 2022 were for larger automotive digital instrument panels (over 10-inches), a 19 percentage point increase from the previous year’s 33%. The growth in the larger LCD BLU was supported by deliveries of automotive model for a leading Japanese automobile brand which started in 1Q2022 and accounted for more than 10% of delivery volume of over 10-inch LCD BLU in 2022. However, delivery volume of LCD BLUs for high-end PCs decreased by 7% in 2022 compared to 2021.
The Group is also developing high-luminance type technology for use in PCs and other products, including automotive applications. Mass production and delivery of such products have started in February 2023 for US automobile brands.
Vietnam Expansion
The Group has long considered regional diversification of its BLU business. After entry procedures for foreigners to Vietnam were restored to the pre-COVID-19 pandemic settings on 15 March 2022, CDW opened a representative office in Ho Chi Minh in November 2022, and was licensed in December 2022.
This office is conducting a full-scale field survey on the feasibility of the Group’s expansion to Vietnam. Personnel from the BLU business will travel to Vietnam to conduct various on-site surveys to determine the availability of domestic procurement of parts and materials, visit industrial parks and other tests. After receiving the survey results and analysing future customer trends, CDW will make a strategic decision.
“The Covid-19 pandemic had a significant impact on corporate activities, but it appears to have passed its peak, and deregulation has started in many countries. The Group’s backlight unit business has also temporarily suspended production. However, now there are prospects for recovery, and we have begun Feasibility Survey for expansion into Vietnam. In addition, we believe that we can succeed in the production and delivery of the Group’s largest ever sized product by making the most of our existing management resources, and we expect that our cutting-edge and highly reliable LCD backlight units will become a benchmark in backlight technology.”, said Mr Yoshikawa Makoto, Chairman and Chief Executive Officer of CDW.
————
CDW Holding Limited (the “Company” and together with its subsidiaries, the “Group”) is a Japanese-managed precision components specialist serving the global market focusing on the production and supply of niche precision components for digital instrument panels in the automobile industry, notebook computers, consumer and information technology equipment, office equipment and electrical appliances, and an original equipment manufacturer. The Group is headquartered in Hong Kong and has operations in Japan, China, South Korea, Thailand and the Philippines. The Company has been identifying new businesses to invest in with the potential for growth and entered as part of its diversification strategy and has made forays into the Life Sciences sector since 2016. The Company’s aim for its Life Sciences business is to identify research-driven yet commercialisable projects that can have a positive impact on the quality of human life.
