Innolux Corporation reported a NT$6.8 billion (US$227 million) net loss for the second quarter as Taiwan’s display panel industry confronts mounting headwinds from trade uncertainties and weakening demand.
The display manufacturer posted revenue of NT$56.2 billion (US$1.87 billion) for the quarter, representing a modest 0.53% increase from the previous period. Operating losses reached NT$7.8 billion (US$260 million), though gross margins improved by approximately one percentage point.
Innolux joins other Taiwanese panel makers preparing for a challenging third quarter despite the period traditionally being a strong season for the industry. The company cited early customer purchases in the first half of 2025 and tariff uncertainties as factors dampening second-half demand projections.
Consumer display demand has softened as earlier purchasing patterns shifted buying forward, reducing pull-through effects. However, the company’s diversification efforts showed progress, with non-display revenue climbing 9% quarterly and commercial display sales gaining 2%.
Industry executives are positioning Taiwan’s panel sector as complementary rather than competitive to U.S. interests as trade tensions persist. Panel manufacturers have adopted production-to-order strategies to maintain supply-demand equilibrium.
Innolux continues its dual transformation strategy, emphasizing higher-margin business segments while adjusting production capacity based on market conditions. The company maintains its focus on operational efficiency improvements to weather the uncertain trading environment.
