The global e-paper industry is growing due to the digitalization trend and the sustainable development trend of ESG. Currently, the e-paper market is mostly occupied by foreign companies, so it seems necessary for domestic companies to enter the related market and localize core technologies.

According to market research firm TrendForce, the global e-paper market size is expected to grow 48.1% year-on-year to approximately USD 4.65 billion (KRW 6.4 trillion) in 2022, and more than quadruple to USD 20.34 billion (KRW 28 trillion) in 2026.

In recent years, electronic paper has rapidly penetrated the consumer and commercial markets with product lines such as electronic paper tablets, electronic shelf labels and electronic notebooks based on their power-saving and low-carbon advantages.

'E-Ink' is currently the world's largest supplier of electronic paper, producing finished products such as △electronic paper modules △electronic ink films and other related materials △electronic shelf labels (ESL). In addition to the continuous improvement of operational performance through the new production line, TrendForce cited partnerships with Qingyue Technology, Yes Optoelectronics, Jiangxi Xingtai Technology, and other e-paper module factories as E-Ink’s biggest advantages.

Eink is evaluated to be expanding and developing the scope of electronic paper applications in the Chinese market by utilizing △electronic paper industrialization △technology sharing △manufacturing △market advantages. Last year, Eink announced that it had expanded the four production lines of its existing Hsinchu plant from the initial two material production lines to six material production lines. The capacity of the last production line is scheduled to be put into operation in the first quarter of next year.

In addition, the company announced plans to add two new material production lines to its Hsinchu plant in 2024, and is said to be building new plants in Taiwan and China.

Electronic paper is equipped with various electronic components, the demand for which is expected to increase in the future. Electronic paper products such as electronic paper tablets and electronic shelf labels (ESL) are largely composed of three parts: display module, wireless chip, and battery.

The internal structure of an electronic paper display (EPD) module is composed of electronic ink coated on a plastic film layer and then attached to a TFT panel. This module is controlled by a driver IC to form pixel graphics, and an electronic paper TFT panel requires about 11 driver ICs.

TrendForce predicted that as e-paper continues to be applied to larger screens, the number of driver ICs embedded in it will also gradually increase. It mentioned that suppliers in the e-paper field, such as Fitipower, UltraChip, and Solomon Systech, are expected to grow over the next five years. He also added that the market share of ESL driver ICs is evenly divided among the three companies.

Fitipower's main products are mainly focused on consumer electronics such as TVs and PCs, followed by ESL, electronic paper, electronic paper displays (EPD), and TCON ICs, which account for 15% of total sales.

For UltraChip, EPD IC orders and supplies are expected to take place around the end of the year, and STN driver ICs are mainly supplied to the automotive, industrial equipment, and white goods fields. From 2020 to 2022, UltraChip produced about 75% of ESL driver ICs in 12-inch wafer foundries. UltraChip is currently actively promoting cost-effective 12-inch 80nm and 70nm processes compared to competitors that utilize 8-inch wafer foundries. Its main products are EPD driver ICs, OLED driver ICs, mobile ICs, and large display IC portfolios.

TrendForce predicts that various e-paper products will replace traditional paper in areas such as smart logistics and warehouses, smart retail, and others. This is because it can reduce labor costs and traditional paper consumption by utilizing cloud platforms and IoT to change shelf labels on the spot and obtain inventory information in real time.

The willingness of retail, logistics and warehouse companies to adopt e-paper tablets, ESLs and other products will increase significantly, especially as digitalization and sustainable development continue to grow. The recent advancement of e-paper products from black and white to color is further driving the expansion of the e-paper market.